SYLLABUS
GS-3: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment.
Context: Recently, the Gujarat International Finance Tec-City Company Limited (GIFTCL) has signed a Memorandum of Understanding (MoU) with ANSR Global Corporation Private Limited (ANSR) to promote the establishment and growth of Global Capability Centres (GCCs) in GIFT City.
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- The MoU aims to facilitate the development of next-generation GCCs by leveraging GIFT City’s infrastructure, regulatory framework, and talent base.
- The collaboration will focus on attracting GCCs engaged in technology development, digital transformation, and enterprise innovation.
About Global Capability Centres (GCCs)
- GCCs are strategic, wholly-owned offshore units established by multinational corporations (MNCs) to centralize and manage various business functions.
- GCCs were originally set up in cost-effective locations to handle back-office functions and reduce operational costs. Today, GCCs are strategic assets that serve as innovation hubs and centres of excellence.
- GCCs are focused on high-value activities like R&D, engineering, product development, and complex business processes.
- They leverage advanced technologies like AI, machine learning, and cloud computing to enhance capabilities and drive innovation.
- India and GCCs:
- India is home to over 1,700 GCCs, employing 1.9 million professionals and generating $64.6 billion in revenue as of 2024.
- Key GCC hubs are located in Bengaluru, Hyderabad, Pune, Chennai, Mumbai, and the National Capital Region (NCR).
- The sector is projected to expand to $105 billion by 2030, with around 2,400 GCCs employing over 2.8 million people, solidifying India’s role as a global hub for enterprise operations and innovation.
- With 40% of digital transformation projects in GCCs, India is now a centre for high-value technology-driven solutions.
Key Benefits of the MoU
- Positioning GIFT City as a Global GCC Hub: The collaboration aims to establish GIFT City as the preferred location for multinational companies seeking efficient, innovative, and globally competitive environments for their capability centres.
- Boost to Investment and High-Value Growth: It is designed to attract international investment, create high-skill jobs, and strengthen technology-driven enterprise growth in India.
- Building a Future-Ready GCC Ecosystem: Through integrated research, thought leadership, and skill development, the partnership will support a sustainable, future-ready GCC ecosystem with lower attrition and faster setup timelines.
- Access to Global Talent: Establishing GCCs in GIFT City will allow multinational firms to access India’s vast pool of highly skilled digital, analytics, engineering, and automation professionals, enabling rapid scaling and innovation.
- Greater Operational Control: Unlike outsourcing, GCCs allow parent organizations direct control over business processes, intellectual property, compliance, and risk management, ensuring alignment with overall strategy.