Latest news with #GICs
Time of India
a day ago
- Business
- Time of India
GCCs to contribute 2% to India's GDP, create 2.8 million jobs by 2030: Report
Academy Empower your mind, elevate your skills Global capability centres (GCCs) are set to contribute 2% of India's GDP and generate 2.8 million jobs by 2030, and are emerging as a key growth and employment generator, according to a report by ACCA (the Association of Chartered Certified Accountants ).GCCs, also known as Global In-house Centres (GICs) or Captive Centres, are fully owned and integrated hubs established by multinational corporations in talent-rich locations to build value and intellectual leverage global talent pools and technological advancements to enhance organisational capabilities and drive business over 1700 GCCs in 2023-24, which is expected to rise to over 2200 by 2030, India has become the prominent destination for the MNCs to set up their the favourable factors, the report said that a skilled workforce, favourable government policies, and improving infrastructure fuel the growth of GCCs in Financial Year 2024, GCCs generated approximately USD 64.6 billion in export revenue: a 40% increase from USD 46 billion in report added that about 20,000 global leadership roles are projected to be based in India by growth of GCCs in India is most prominent in Tier-1 cities, with Bengaluru leading the pack with 487 centres (29% of India's total). Hyderabad follows closely with 273 GCCs (16%), while the NCR region hosts 272 centres. Mumbai, Pune, and Chennai also contribute significantly, accounting for 12%, 11%, and 10% of the national total, is a reflection of India's effort to establish itself as the world leader in housing Global Capability centres (GCCs), with currently nearly 1,700 centres, over 53% of the total 3,200 have evolved from cost-saving units to strategic hubs driving innovation, operational efficiency, and business growth. GCCs are strategically located in countries like India, offering access to diverse talent pools, robust ecosystems, and favourable business report highlights that the finance roles in GCCs have shifted from doing basic transaction-focused accounting to creating value for the organisation through process improvement and cost transformation initiatives. Opportunities abound in business partnering, procurement, reporting, planning, and entry-level roles focus on data analytics, financial planning and analysis (FP&A), and compliance management, mid-level roles are shifting to process improvements and driving transformation, the report added.
Yahoo
5 days ago
- Business
- Yahoo
TFSA Passive Income: How Retirees Can Get Decent Returns While Reducing Capital Risk
Written by Andrew Walker at The Motley Fool Canada Canadian seniors are using their self-directed Tax-Free Savings Account (TFSA) to hold investments that can generate steady tax-free income that won't put their Old Age Security (OAS) at risk of a clawback. Protecting capital is important as investors get older, but that often collides with a desire for higher returns. One strategy to consider involves holding a combination of Guaranteed Investment Certificates (GICs) and top dividend-growth stocks. GIC pros and cons GICs offered by Canada Deposit Insurance Corporation (CDIC) members provide safety for the capital invested in the event the issuer goes bankrupt, as long as the amount is within the $100,000 threshold. There are reports that the government is considering expanding the limit to $150,000. GIC rates offered on non-cashable certificates are higher than those on ones that provide more flexibility. In late 2023, investors were briefly able to get GICs with rates of 6%. Falling interest rates and declining bond yields led to declines in the rates being offered on GICs through 2024. The recent spike in government bond yields, however, has also pushed up GIC rates offered by banks and alternative lenders. At the time of writing, investors can get non-cashable GICs in a range of 3.5% to 3.9% depending on the provider and the term. This is well above the June rate of inflation that came in at 1.9%, so the GIC is a good risk-free option to consider right now. The downside of the non-cashable GIC is that the cash is locked up for the term. In addition, the rate earned on the money is fixed. In addition, rates available in the market when the GIC matures could be much lower. Dividend stocks pros and cons Stock prices can fall below the purchase price, and dividends can be cut if a company runs into a cash flow problem. This is the risk investors take on for the opportunity to get better yields and a shot at capital gains. On the dividend side, investors looking for income should consider stocks that have increased the distribution steadily for a long time. Enbridge (TSX:ENB) is a good example of a stock with a great track record of dividend growth. The pipeline giant increased the dividend in each of the past 30 years. Enbridge grows through strategic acquisitions and development projects. The company spent US$14 billion in 2024 to buy three American natural gas utilities. Enbridge is also working on a $28 billion capital program to drive additional earnings expansion. Increases in distributable cash flow are expected to be 3% to 5% in the coming years. This should support ongoing dividend growth. Investors can currently get a 6.1% dividend yield from the stock. Stocks can be sold at any time to access the funds in the case of an emergency need for cash. In addition, each increase in the dividend raises the yield on the initial investment. The bottom line The right combination of GICs and dividend stocks depends on a person's appetite for risk, desired average yield, and the need for quick access to the funds. In the current environment, investors can quite easily put together a diversified portfolio of GICs and dividend-growth stocks to deliver an average yield of 4% to 5%. This is a decent return while reducing capital risk. The post TFSA Passive Income: How Retirees Can Get Decent Returns While Reducing Capital Risk appeared first on The Motley Fool Canada. Should you invest $1,000 in Enbridge right now? Before you buy stock in Enbridge, consider this: The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and Enbridge wasn't one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years. Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the 'eBay of Latin America' at the time of our recommendation, you'd have $24,927.94!* Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 30 percentage points since 2013*. See the Top Stocks * Returns as of 6/23/25 More reading 10 Stocks Every Canadian Should Own in 2025 3 Canadian Companies Powering the AI Revolution A Commonsense Cash Back Credit Card We Love The Motley Fool recommends Enbridge. The Motley Fool has a disclosure policy. Fool contributor Andrew Walker has no position in any stock mentioned. 2025 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Hans India
22-07-2025
- Business
- Hans India
The Next Frontier: India's Global Capability Centre
Over the past two decades, India has become a major destination of multinational corporations that want to establish Global Capability Centres (GCCs). These centers that were initially characterized by transactional back-office support have become advanced strategic units that have brought innovation, product development, and digital transformation to the parent organizations across the globe. Bengaluru, Hyderabad, Pune are some of the cities that have long ruled this landscape, providing deep talent pools, strong infrastructure and mature ecosystems that have drawn some of the largest enterprises in the world. The Emergence of Tier-2 and Tier-3 Cities But there is a major shift that is subtly changing the GCC story of India. More and more multinational corporations are seeking opportunities outside these Tier-1 cities and are now turning to newer urban centers in Tier-2 and Tier-3 areas. This shift is not merely a spill over of urban clogging in metros but a well-calculated move that signifies maturing requirements of international companies. The smaller cities of Coimbatore, Kochi, Indore, and Jaipur are also in focus due to their cost advantages, growing talent pools, better infrastructure, and favourable policy expertise training programs helps companies enhance their talent pool in Tier-2 cities, making them better equipped to handle the complexities of global operations. This change is a turning point in the Indian position as a world leader in service delivery. The move to Tier-2 cities holds the potential of increasing operational resilience, human capital that remains unexplored, and a more decentralized model of growth that can transform the economic geography of India. With the world of business demanding agility in the rapidly evolving world, the emerging hubs in India are set to assume the center stage in driving the next generation of GCCs. A Brief Evolution of India's Global Capability Centres: The history of GCCs in India dates back to the late 1990s when multinational corporations discovered the potential of cost arbitrage in the country. They were originally established as Global In-house Centres (GICs) and their mandate was mainly to deal with routine and non-core business processes like IT support, payroll and customer service. These centers have over time been able to handle more complex tasks and have moved up the value chain to handle software development, financial analytics and process innovation. By the mid-2010s, GCCs of India had become strategic assets to their parent organizations. They were no longer bound to transactional work but now were critical points in the global operations, innovators and creators of intellectual property. Indian GCCs are currently on the cutting-edge of providing high-value business outcomes, whether in terms of cutting-edge AI research or cybersecurity management, or product engineering. This change has entrenched India as a choice location to establish and grow GCC operations. The Shift Beyond Tier-1 Cities With Tier-1 cities in India still attracting more GCCs, they were bound to encounter the problems that come with fast urbanization. Increasing real estate prices, wage inflation, infrastructure pressure, and rising attrition rates began to chip away at some of their initial benefits. Companies started to see that their operations were concentrated in a limited number of congested urban centers, which was operationally risky, as it was demonstrated during the COVID-19 pandemic when centralized workforces were seriously disrupted. This has prompted multinational corporations to be more distributed. The lower operational costs, presence of fresh talent and the improving infrastructure in Tier-2 cities made them attractive alternatives. These cities have a 30-50% cheaper cost structure, including real estate, employee salaries, giving corporations the financial space to invest in innovation and business continuity strategies. In addition to cost benefits, Tier-2 cities have well-known universities and technical institutes that churn out high numbers of skilled graduates every year. This new source of talent is usually more stable as they have less competition in the local market and they are more connected to their hometowns and hence there is less rate of attrition as compared to Tier-1 cities where job-hopping is more common. This stability can provide organizations with a long-term benefit in workforce planning and capability building. Infrastructure Growth and Policy Support In the past, poor infrastructure in Tier-2 cities was a significant setback to multinational companies looking to expand. But this is fast changing. Urban facilities in smaller cities have been enhanced considerably due to the efforts of the Indian government, such as the Smart Cities Mission, and investment in digital and physical infrastructure. The availability of high speed internet connectivity, good power supply, improved airports, and improved road networks are now allowing businesses to establish and operate technology intensive operations beyond the metros. The role of government policies in promoting this shift is also crucial. Some state governments are providing incentives in the form of tax breaks, subsidized land and simplified regulatory frameworks to encourage foreign investment in their states. This active assistance is in line with the Indian vision of balanced regional growth and employment in the entire country. The Changing Nature of GCCs in Emerging Cities In contrast to the early predecessors of GCCs, these GCCs in Tier-2 cities are no longer back-office support units but are being designed more and more as innovation hubs. Advanced tasks such as data analytics, AI/ML model development, cybersecurity operations, and even end-to-end R&D to global markets are being taken care of by these centers. This change is an indication of a new way in which corporations perceive India not just as a place to undertake cost-efficient operations but as a partner to deliver strategic results. Multinational corporations are establishing resilient, future-ready operations that are dynamic enough to meet the needs of the global market by capitalizing on the special combination of new talent, cost advantages, and enhanced infrastructure in Tier-2 cities. Addressing Challenges in the Transition Although the opportunities look bright, there are challenges associated with spreading GCCs to Tier-2 cities. The supporting ecosystem of vendors, consulting firms and niche skill providers is less mature compared to Tier-1 hubs. This implies that corporations need to spend more on local supply chain development or collaborate with partners who have experience in these new markets. Also, although the supply of talent is abundant in quantity, it is possible that niche skills and senior professionals will have to be brought in through other large metros or be developed internally through training programs. Some smaller cities have infrastructure that is also catching up, which might be lacking in some aspects such as international air connectivity, which might influence work with international teams. These are however transition problems. With the increasing number of GCCs setting up shop in Tier-2 cities, the local ecosystems should mature, forming a positive feedback loop that will attract even more investment and talent. The Future of GCCs in India The future of GCCs in India Tier-2 cities is evidently on the rise. Analysts in the industry estimate that a large proportion of new GCC installations in the next ten years will be in these emerging hubs. With their expansion, these centers will tend to become self-sufficient innovation hubs, developing their own startup, service provider, and academic partnership ecosystems. Such decentralization does not only increase the resilience of business operations but also spreads economic growth throughout India. It has the potential to establish new urban growth centers that can compete with Tier-1 metros in terms of talent quality and sophistication of operations. The Role of Vinsys in India's GCC Evolution At Vinsys, we understand the complexities of this evolving landscape. With over 25 years of experience in training and workforce development. Vinsys a Microsoft Certified Partner help organizations prepare their teams to deliver high-value outcomes in GCC environments. Vinsys IT Services India Limited provide tailored programs in leadership, cybersecurity, cloud technologies, and emerging domains equip professionals with the skills to thrive in the global business ecosystem. As Vinsys is a trusted partner for many global accrediation bodies, ensure that your GCC teams are not only future-ready but also capable of driving transformative results. Conclusion India's Tier-2 cities are no longer peripheral to the GCC story—they are fast becoming integral to its next chapter. For multinational corporations, exploring these emerging locations offers a strategic opportunity to build cost-efficient, resilient, and innovation-driven operations.
Yahoo
10-07-2025
- Business
- Yahoo
TSX dividend stocks: CIBC predicts 'powerful' exodus from GICs through 2025
Yield-hungry investors will keep flocking to Canadian dividend stocks through the end of 2025, according to CIBC Capital Markets. Shares of Canadian banks, insurers and pipeline companies are expected to benefit the most from a slower-than-expected 'yield trade' away from GICs (guaranteed investment certificates). GICs, typically issued by banks, insurance firms and trust companies, offer a guaranteed return over a fixed timeframe. They surged in popularity when the Bank of Canada (BoC) began raising its trend-setting policy rate in March 2022 from COVID-19-era lows. Now, the tables have turned, with the BoC policy rate 225 basis points lower since last summer, following seven cuts from the central bank. The Bank of Canada is scheduled to announce its next rate decision on July 30. CIBC's Ian de Verteuil predicts a 'powerful fund flow' from GICs will continue to migrate to high dividend-yielding Canadian stocks. 'We are still early in the trade, and with further unwinding in GICs expected through the remainder of 2025, there is still a powerful fund flow support for high dividend-yielding Canadian equities,' he wrote in a note to clients earlier this week. So far in 2025, de Verteuil says performance has been brisk for most of the typical TSX dividend darling sectors, with utilities and REITs (real estate investment trusts) playing catch-up. 'Banks, insurers and pipelines have outperformed even the excellent returns of the S&P/TSX Composite – which has itself been bolstered by a rally in gold prices,' he wrote. 'Certainly, banks, insurers and pipelines will continue to benefit, but we would expect the 'yield trade' to broaden out further to include Utilities, REITs and Communications, which have not done as well.' de Verteuil says the exodus from GICs has been slower than expected, despite $100 billion in GICs repricing every quarter. 'There may be some surprise as to why GIC balances have not declined at an even faster pace. Part of this is simply the duration of the book and penalties for early cancellation of most GIC deposits,' he wrote. 'Another potential reason for the slow movement out of GICs is the equity market volatility earlier in the year, which may have encouraged investors to renew their low-risk GICs rather than switch to more volatile equities.' Jeff Lagerquist is a senior reporter at Yahoo Finance Canada. Follow him on X @jefflagerquist. Download the Yahoo Finance app, available for Apple and Android. Sign in to access your portfolio
Yahoo
10-07-2025
- Business
- Yahoo
TSX dividend stocks: CIBC predicts 'powerful' exodus from GICs through 2025
Yield-hungry investors will keep flocking to Canadian dividend stocks through the end of 2025, according to CIBC Capital Markets. Shares of Canadian banks, insurers and pipeline companies are expected to benefit the most from a slower-than-expected 'yield trade' away from GICs (guaranteed investment certificates). GICs, typically issued by banks, insurance firms and trust companies, offer a guaranteed return over a fixed timeframe. They surged in popularity when the Bank of Canada (BoC) began raising its trend-setting policy rate in March 2022 from COVID-19-era lows. Now, the tables have turned, with the BoC policy rate 225 basis points lower since last summer, following seven cuts from the central bank. The Bank of Canada is scheduled to announce its next rate decision on July 30. CIBC's Ian de Verteuil predicts a 'powerful fund flow' from GICs will continue to migrate to high dividend-yielding Canadian stocks. 'We are still early in the trade, and with further unwinding in GICs expected through the remainder of 2025, there is still a powerful fund flow support for high dividend-yielding Canadian equities,' he wrote in a note to clients earlier this week. So far in 2025, de Verteuil says performance has been brisk for most of the typical TSX dividend darling sectors, with utilities and REITs (real estate investment trusts) playing catch-up. 'Banks, insurers and pipelines have outperformed even the excellent returns of the S&P/TSX Composite – which has itself been bolstered by a rally in gold prices,' he wrote. 'Certainly, banks, insurers and pipelines will continue to benefit, but we would expect the 'yield trade' to broaden out further to include Utilities, REITs and Communications, which have not done as well.' de Verteuil says the exodus from GICs has been slower than expected, despite $100 billion in GICs repricing every quarter. 'There may be some surprise as to why GIC balances have not declined at an even faster pace. Part of this is simply the duration of the book and penalties for early cancellation of most GIC deposits,' he wrote. 'Another potential reason for the slow movement out of GICs is the equity market volatility earlier in the year, which may have encouraged investors to renew their low-risk GICs rather than switch to more volatile equities.' Jeff Lagerquist is a senior reporter at Yahoo Finance Canada. Follow him on X @jefflagerquist. Download the Yahoo Finance app, available for Apple and Android. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
