News in brief
Mysuru is emerging as a Hub for Global Captive Centers of various MNCs in India. This conclusion is as per the study and analysis carried out jointly by London-based Jones Lang LaSalle Incorporated (JLL) – a global commercial real estate services company, and Mumbai-based real-estate data analytics company CRE Matrix.
CRE Matrix does the data analytics in the commercial and residential real-estate vertical and provides insightful real estate research reports, demand-supply trends, etc.
Their research throws out interesting facts. The report says other than Mysuru, Kolkata, Ahmedabad, Coimbatore, Nagpur, and Lucknow are also slowly emerging as hubs for GCCs.
What are GCCs?
Global Captive Centers are a part of MNCs which provide administrative, HR, Accounting, financial, and Technical support to the parent Organisation. The GCCs in India also contribute significantly to R&D, product engineering, innovation, IT, and other high-tech activities. In a nutshell, they help MNCs stay ahead of the competition and remain profitable.
How many GCCs are there in India?
There are 1500 GCCs in India as of 2022, and about 500 more are likely to be added to the list by 2026. The spread of GCCs is depicted as shown in the picture below
Some GCCs that operate out of India
- American Express bank,
- Deutsche bank
- Goldman Sachs
- Fidelity investments
- BNP Paribas
- Walls Fargo
- General Electric (GE)
- Schneider Electric
- Ernst & Young
- Morgan Stanley
- Verizon and many many more
Revenue contribution from GCCs
GCCs in India employ 13 Lakh people (1.3 million) and contribute USD 45 billion to India’s Gross domestic product (GDP) as of the 2021 study. The study estimates that by 2026, the revenues from GCCs will reach USD 85 billion.
What makes GCCs pick Mysuru?
Nammu Mysuru is attractive to GCCs because of the readily available talent pool, disciplined workforce, better living conditions compared to Metros, salubrious climate, and well-developed infrastructure – Expressway connectivity to Bangaluru, airport under expansion, railway connectivity to critical commercial centers, and others.
Bangaluru has the lion’s share of GCCs in India, and there will be a spillover effect into Mysuru, which is just 140 km away. The satellite centers of these GCCs in Bangaluru will be the first to anchor in Mysuru. Already IBM’s client innovation center has kick-started this trend and will only continue.
Karnataka’s new GCC policy initiative
Karnataka government has created a new GCC policy to create the IT/ GCC ecosystem in Tier 2 cities – Mysuru, Hubli, Mangaluru, and Belagavi. The objective is to incentivize starting IT/ GCC/ ESDM companies in these Tier 2 cities. Also, there is a plan to create 5000 startups in these cities by 2026. The government is planning to develop schemes similar to PLI (production-linked initiatives) to attract GCC and chip design companies to the state in big numbers.