Published on: July 17, 2024

GLOBAL CAPABILITY CENTRES (GCCS) IN KARNATAKA

GLOBAL CAPABILITY CENTRES (GCCS) IN KARNATAKA

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.