26-06-2025
- Business
- New Indian Express
Global Capability Centres to generate value at 11-12% CAGR between FY25-29: Report
Global Capability Centres (GCCs) have evolved into-cost conscious innovators and will generate value at 11-12% CAGR between FY25-29, according to PwC's latest report.
GCCs have generated value at a weighted average CAGR of 10-11% during FY-20 to FY24 for their respective headquarters. The report points out that the CAGR of value creation would be in excess of 14–15% with complete alignment between the GCCs and their respective headquarters.
India currently has more than 2,975 GCC units. It said that today GCCs in the country have matured as cost-conscious innovators and multifunctional CoEs (centres of excellence). They are fast becoming central to their headquarters' growth strategy.
The report mentioned that with the ongoing global supply chain and trade tensions, alignment between headquarters and their GCCs has become strategically important to maintain and enhance the strategic and operational competitiveness of headquarters.
Sanjeev Krishan, Chairperson, PwC in India, said, "In the context of India's growth story, it is important for GCCs and their HQs to co-create a shared definition of value, invest in joint decisions, and build a culture of collaboration. GCCs must see complete alignment with their HQs - not as a one‑time fix, but as a sustained leadership imperative."
The report also reveals that India will continue to be a premier destination for setting up GCCs. Raghav Narsalay, Partner and Leader – Research and Insights Hub, PwC India said, 'Indian GCCs are uniquely positioned to become engines of dynamic value creation.' He added the need to build GCC parks and to develop Tier 2 locations to become mature GCC hubs.'
The report highlights that a common set of services that are top priority for the headquarter and GCC leadership of product as well as services-based companies in their future phase of growth during FY25-29 include digital transformation and innovation, and research and development.
