The US economy is slowing down. Given the challenges of high interest rates and inflation, businesses are under pressure to reduce their costs, including tech spending. Since over 60% of India’s tech revenue is from the US, Indian markets have also been hit hard.
In the US, various tech giants have laid off employees. They are now offshoring jobs to lower their costs. To take advantage of this opportunity, GCCs or Global Capability Centers are rapidly expanding in India. The aim is simple, to reduce costs and improve capability while reducing the risk.
Outcome is jobs for both tech and non-tech competencies.
Global Capability Centres (GCCs) are offshore units established by multinational corporations (MNCs) to centralize and manage critical business functions. They provide companies with access to skilled individuals at a lower cost.
As per the Economic Times, Global Capability Centres (GCCs) in India are set to create 4.25-4.5 lakh jobs this year and 1 million by 2029.
Job creation will rise. But is the growth sustainable?
Of course, there will be a surge in job creation, but the jobs will not be growing forever. Once the US economy improves, the companies will reduce the offshoring and provide jobs to the professionals in the US.
So, yes, GCCs are a great opportunity, but only for a limited period.
What should professionals do?
The professionals who have a great job opportunity should take it up. But those who are building capabilities should focus on larger opportunities rather than just GCCs.
To stay relevant:
-Invest in High-Demand Tech Skills – AI, cloud, data science, cybersecurity, automation.
-Focus on Problem-Solving, Customer Experience, and Strategic Thinking – Move to jobs that are involved in in-person customer experience, discretionary work, or decision-making.
-Develop Global Business Acumen – Know how GCCs create value for their parent companies.
-Stay Agile & Adaptable – Be ready to pivot as tech and industry evolves.
While GCCs are creating jobs in India for the short run, Indians should utilize the opportunity. People who are getting job opportunities should take them while the going is good.
Those who are building competencies specifically for GCCs should aim for a larger goal as the opportunities will disappear shortly. Professionals must upskill, focus on high -value work and adapt to industry shifts to stay relevant in the market.
What are your thoughts on the future of GCCs in India? How do you see the IT industry in the coming years? Let us know your thoughts in the comments below!