For some time, we have asserted that Global Capability Centres (GCCs) represent India's most compelling economic narrative. However, effectively telling this story requires robust data. Unfortunately, there is no industry-wide consensus on the definition of a GCC or how to 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 exclude them, despite these firms sometimes self-identifying as GCCs in India. Based on its narrower definition, Nasscom recently released GCC figures that we reported.
Alternative Data from Wizmatic
For the past two years, Sandeep Panat's consultancy Wizmatic has produced alternative figures that include foreign IT services companies, arguing they function and are structured identically to other GCCs. These figures are derived from extensive data collation of over 2,100 companies from the Registrar of Companies (RoC) and over 10,000 companies from the Employees' Provident Fund Organisation (EPFO). The RoC provides export and revenue data, while EPFO offers month-wise employee numbers.
This dataset likely offers the best insight into the performance and contribution of MNCs providing IT, ITeS, and ER&D services from India. The numbers are remarkable: their growth far surpasses that of Indian companies in the same segment, and they are now comparable in size to or larger than the domestic IT industry.
Key Growth Figures
Wizmatic estimates that in 2024-25, exports from these entities grew 13% to $153 billion. Based on nine-month data, 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 is estimated at 17%.
Dollar growth rates in recent years have been impressive: 17% in FY21, 25% in FY22, 19% in FY23, and 16% in FY24.
Employment and Value Addition
Employment growth has been equally striking, rising from 2.3 million in FY20 to 4.2 million currently. Panat notes that among the 10,590 IT and tech companies he tracks, total employment is about 8 million, meaning foreign companies now account for half of all employees. Revenue per employee has increased 24% over the same period, indicating that GCCs are moving up the value chain.
AI Disruption Ahead
Looking forward, AI is expected to be a major disruptor. As AI automates many processes, fewer employees may be needed. Shalini Pillay, India leader for GCCs at KPMG in India, suggests that mature centres with 20,000-40,000 employees may need to rethink workforce models. Viswanathan K S, former VP at Nasscom and a GCC expert, notes that the current GCC model relies heavily on people, but centres must reimagine workflows to remain relevant to their parent enterprises.
Despite these challenges, 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 firms are potential entrants. Pillay advocates for quasi-industry status for GCCs, while Viswanathan urges greater ease of doing business and an international campaign to showcase the capabilities of India's tech talent and domain experts.
