For some time, we have said that global capability centres (GCCs) represent India's best story. However, telling that story effectively requires accurate data. Unfortunately, the industry lacks consensus on how to define a GCC or estimate its size. The primary point of contention is whether to include IT services subsidiaries of companies like Accenture, Capgemini, and Cognizant. Nasscom and others prefer to exclude them, even though Accenture and Cognizant in India have sometimes described themselves as GCCs. Based on its definition, Nasscom recently released figures for GCCs, which we reported.
Alternative Data from Wizmatic
Sandeep Panat's consultancy Wizmatic has been publishing a different set of figures for two years, including foreign IT services companies, arguing that their function and structure are identical to other GCCs. These figures are based on extensive data collation from the Registrar of Companies (RoC) for over 2,100 companies and from the Employees' Provident Fund Organisation (EPFO) for over 10,000 companies. RoC provides exports and revenue data, while EPFO offers month-wise employee numbers.
This approach likely provides the best insight into how MNCs offering IT, ITeS, and ER&D services from India are performing and their contribution to the country. The numbers are remarkable. Their growth far surpasses that of Indian companies in the segment, and they are now as large as or larger than the domestic industry.
Growth Figures
Wizmatic estimates that in 2024-25, exports from these companies grew by 13% to $153 billion. Based on nine-month figures, it projects further growth of 6.9% to $164 billion in 2025-26. However, due to significant rupee depreciation over the past year, rupee-denominated growth will be as high as 17%.
Dollar growth rates in recent years have been impressive: 17% in FY21, 25% in FY22, 19% in FY23, and 16% in FY24. Employment growth has been equally strong, rising from 2.3 million in FY20 to 4.2 million now. Panat notes that there are about 8 million employees in the 10,590 IT and tech companies he tracks, meaning foreign companies already account for half of total employment.
Revenue per employee has increased by 24% over the same period, indicating that GCCs are moving up the value chain.
AI Disruption
Looking ahead, AI is expected to be a major disruptor. Fewer people may be needed as AI automates many processes. Shalini Pillay, India leader for GCCs at KPMG in India, says mature centres with 20,000-40,000 people may need to rethink workforce models. Viswanathan K S, former VP at Nasscom and a GCC expert, notes that the GCC model is currently people-based, but centres will have to reimagine workflows and processes to remain relevant to their enterprises.
Despite these concerns, most remain optimistic about employment. Many of the world's 2,000 largest companies have yet to establish a GCC in India, and thousands of mid-sized companies are also potential entrants. Pillay suggests granting quasi-industry status to GCCs, while Viswanathan urges greater ease of doing business and an international campaign to showcase what India's techies and domain experts can deliver.
