Global Captive Centers (GCCs), are centres of excellence, set up by large multinational companies to provide tech services, R&D, engineering, IT support and business process outsourcing and develop innovative solutions and business practices. Developing countries like India, are ideal destinations for MNCs to set up Global Captive Centres.

1. Global Captive Centers in
India and The Evolving
Landscape
What Are Global Captive Centres?
Global Captive Centers (GCCs), are centres of excellence, set up
by large multinational companies to provide tech services, R&D,
engineering, IT support and business process outsourcing and
develop innovative solutions and business practices. Developing

2. countries like India, are ideal destinations for MNCs to set up
Global Captive Centres.
India currently accounts for around 45% of global captive centres
in operations across sectors such as BFSI, software, automotive,
pharmaceuticals, retail, oil and gas. It continues to be the
destination of choice for multinational companies for setting up
GCCs. A NASSCOM survey revealed that MNCs are likely to set up
500 new Global Captive Centers (GCCs) in India by 2025.
Hiring Trend for Global Captive Centers in India in
2023
Despite the global economic concerns, there has been an increase
in demand for talent in the market due to the surge in service
demand in key global markets. Around 78% of the GCCs have
made it clear that they are looking to increase their talent pool by
10-100%.
GCCs will be adding close to 3.64 lakh jobs by 2023, and there
will be a huge scale-up in the sector from the current economic
value of $35.9 to $60-85 billion by 2026. Currently, GCCs are
showing a contribution of 1% to the GDP and are expected to
grow to 2% in the next three years.
The sectors that topped the chart were IT software and consulting
with 33% of respondents keen on ramping up their talent pool,
followed by banking, financial services and insurance (BFSI) and
internet and telecom with 21% and 16% respectively.
India continues to outshine in growth strategy and is expected to
see a CAGR growth of 10.8% in employment in 2023 alone.
The demand for talent in India is expected to grow more.

3. Amongst all the top-tier cities in India, Bengaluru has topped the
list in terms of job creation for GCCs.
While India has been established as the perfect, sustainable place
for GCCs that leverage talent and capabilities in the country,
GCCs have also contributed significantly in return. A report
generated by Deloitte shows a comprehensive approach to gauge
the value delivered by GCCs to India’s growth story and provides
a view of what’s next.
GCCs make a considerable impact in India across multiple
dimensions:
● Economic– Direct and indirect impact across Gross
Domestic Product, taxation, and employment
● Human capital– Impact on employees’ professional growth,
leadership pipeline for the nation, and equal opportunities at
work
● Innovation and ecosystem– Deployment of technology
and enablement of cross-sector development to create an
ecosystem of talent, start-ups, and corporates that leads to
innovation for the nation
● Social impact– in communities through fund allocation,
volunteering for social initiatives, a helping hand to make
NGOs and their programmes more effective
● Environmental– Global sustainability principles being
formulated and practiced, leading to a better environmental
sustainability outlook for the nation
● Reputational– Supporting the parent organisation in a way
that showcases India as a country suitable for skills
arbitrage.

4. Key highlights of GCC contributing to the Indian
capital market
● GCCs in Bengaluru, Chennai, and Hyderabad comprise ~9
million square feet of prime office space, which is the key
asset underlying Real Estate Investment Trusts (REITs).
● They contribute to accounting firms and law firms expanding
their transfer pricing teams, generating high-skilled
employment.
● Majority of GCCs have formal vendor relationships for F&B
and transportation services, and blue-collar employment.
GCCs’ geographic coverage in India
1. Bengaluru has the highest share of GCCs and is the
destination of choice for platform engineering
2. With the rise in IT hubs in the city, Hyderabad is emerging
as the key contender to Bengaluru
3. Increasing movement to Tier-2 cities such as Trivandrum,
Coimbatore, Ahmedabad, Vadodara, and Jaipur with a focus
on CoEs or niche capability centers .
4. Pune and Chennai are dominated by automotive GCCs and
Mumbai is dominated by BFSI GCCs
Skills and Roles in Demand
Data science, data analytics, data engineering, statistical analysis
and UI/UX design are the most in-demand skills as per GCCs’. 12
% of the GCCs also rated communications, critical thinking and
interpersonal skills as the most sought-after behaviour skills.
With 1 million engineers graduating each year, India has the
largest population of engineers in the world, which has made

5. international companies realize the importance of leveraging this
demographic deficit effectively.
The highest skill gap was found to be in the most desired skills
like python programming, data analysis, and SQL/Hadoop
specialists.
Skills that are most relevant to the model, like, business
operations, Strategic management, sales engineering and
corporate communication skills faced a skill gap of as high as
38%.
Opportunities for the Recruitment & Staffing
Industry
While the growing demand for skill is creating ample job
opportunities for India, which is great news, what’s even better is
that this new wave of Global Captive Centres coming up with new
centres focused on technological innovation rather than the
traditional approach that led to cost advantage and arbitrage.
Business leaders are recognizing that India has the maximum
potential to provide the scale of high-quality skills they need in
science and technology, out of all the countries in the world.
It’s time for recruitment firms to gear up and be on their A-game,
as Recruitment Process Outsourcing (RPO), seems to be the
most preferred mode of talent acquisition (22%), according to a
study.
With the growing demand for talent, organizations will need a
robust talent acquisition partner that will allow them to unburden
themselves about hiring talent and focus on their core functioning
business areas, and hiring an RPO partner fits perfectly for the
scenario.

6. 67% of GCCs have shown interest in hiring for permanent job
positions, and 21% prefer temporary employment. A large
number of GCCs expressed the need to promote gender diversity
hiring while only a few others indicated specific gender
preferences, according to the study. In comparison to IT services
firms and startups, hiring by GCCs remains strong, but is subject
to the influence of global slowdown on parent MNCs having
captive centres in India.
While there is a cautionary outlook on hiring for GCC due to the
current state of economic slowdown, specialized skills, domain
knowledge and talent, especially mid-level talent with 5-10 years
of experience will continue to be in demand.
With the growth of GCCs’, their ability to create new, significant
value for their parent organization from India enhances India’s
reputation not just for GCCs but also for 3rd party service
providers operating out of India. As a third-party service provider,
our RPO and Staffing solutions are tailor-made to suit our
client’s workforce requirements. Alp has a huge team of 500+
recruiters with expertise in both permanent recruitments as well
as contract staffing with short TAT and world-class service
delivery and support.