McKinsey Report: India’s GCC Sector to Reach $105 Billion by 2030, But MNCs Must Adapt
17 Apr 2025 / 03 min read
Multinational companies (MNCs) operating in India must shift their focus beyond cost-cutting measures to achieve long-term success and growth in the country, according to a McKinsey report cited by The Hindu Business Line.
Multinational companies (MNCs) operating in India must shift their focus beyond cost-cutting measures to achieve long-term success and growth in the country, according to a McKinsey report cited by The Hindu Business Line.
This strategic shift comes as India’s Global Capability Centers (GCCs) sector is poised for significant growth, with revenue projected to reach $105 billion by 2030 and employ around 2.8 million people.
India has become the GCC capital of the world, with many MNCs setting up centers to leverage the country’s vast talent pool, advanced technology, and favorable business environment. The GCC sector has been a key driver of India’s economic growth, with companies like Microsoft, Google, and Amazon setting up large operations in the country. However, the McKinsey report suggests that companies need to adopt a more nuanced approach to succeed in India, moving beyond the traditional low-cost operations model.
Key Takeaways
- Beyond Cost-Cutting: MNCs need to focus on innovation, digital transformation, and building local capabilities to drive growth in India. This includes investing in research and development, adopting new technologies, and building partnerships with local businesses and startups.
- GCCs Driving Growth: India’s GCC sector is expected to play a significant role in the country’s economic growth, with revenue projected to reach $105 billion by 2030. The sector is also expected to employ around 2.8 million people, making it a major source of employment in the country.
- Talent Pool: India’s vast talent pool is a key driver of the GCC sector’s growth, with many MNCs setting up centers to tap into this resource. The country’s large pool of skilled workers, including engineers, data scientists, and software developers, makes it an attractive destination for companies looking to set up GCCs.
Implications for MNCs
The McKinsey report highlights the need for MNCs to rethink their strategy for India. Companies that focus solely on cost-cutting measures may find it difficult to sustain themselves in the long term. Instead, MNCs need to focus on building local capabilities, investing in innovation, and adopting new technologies to drive growth.
India’s Competitive Advantage
India’s competitive advantage lies in its vast talent pool, advanced technology, and favorable business environment. The country’s government has also taken several initiatives to support the growth of the GCC sector, including providing tax incentives and investing in infrastructure. With the right strategy and approach, India can remain a key destination for tech investments and innovation.
