NEWS – According to recent report, Global Capability Centres (GCCs) to Employ 1 million People in Karnataka by 2030

HIGHLIGHTS

Overview

• Karnataka’s GCC Potential:
  • Expected to host approximately 330 Global Capability Centres (GCCs) by 2030.
  • Anticipated creation of one million jobs.
  • Analysis by the state government highlights Karnataka’s potential as a premier GCC hub.

Key Findings from the Report

• Karnataka’s Role:
  • Potential to host over 15% of Forbes 2000 firms.
  • By 2030, could host around 330 Forbes 2000 firms.
  • India’s increasing prominence as a global GCC hub is a driving factor.
  • GCC employment in Karnataka is projected to grow at a CAGR of 10%.

Government Initiatives

• Upcoming GCC Policy:
  • Focus on incentives and regulations.
  • Target areas include Bengaluru, Mysuru, Hubbali, and Mangaluru.
• Current Policies and Initiatives:
  • IT Policy, ER&D Policy, Cyber Security Policy, and Data Centre Policy.
  • Karnataka captured 53% of the total FDI in the computer hardware and software sector during 2021-22.

Bengaluru’s Market Position

• Market Share:
  • Bengaluru holds 39% of India’s GCC market share.
  • Recognized as the market leader and largest hub for GCC operations.
  • Competition from Hyderabad, Chennai, Gurugram, and Mumbai.

Pan-India Perspective

• Growth Projections:
  • Number of GCCs expected to rise from over 1,600 in 2022-23 to 2,400 plus by 2029-30.
  • Market size projected to reach $110 billion.
  • Employment of over 4.5 million professionals anticipated.

Bengaluru’s Digital Talent Pool

• Talent Availability:
  • Home to 25% of India’s digital talent.
  • High demand for professionals in AI, ML, and R&D roles.

Sectoral Breakdown in Karnataka

• FMCG Sector:
  • Fast-moving consumer goods are nondurable products that sell quickly at relatively low costs
  • 42% of GCCs of FMCG giants like Target, Walmart, and Unilever are based in Karnataka.
• BFSI Sector:
  • Banking, financial services and insurance ( BFSI) is the industry’s umbrella term for companies that provide a range of such financial products or services
  • 33% of GCCs of BFSI companies like Goldman Sachs and JP Morgan Chase are in Karnataka.
  • BFSI sector leads with over 90 GCCs in the state.