What's Happening?
Global capability centers (GCCs) in India are evolving from traditional back-office roles to leadership hubs for multinational companies. This shift is highlighted by the relocation of senior executives
to India, such as Venkatesh Natarajan, who now heads Vanguard's operations in Hyderabad after a long tenure in the U.S. The demand for office space by GCCs in India has surged, accounting for 38% of the country's office space demand in the third quarter. This transformation is driven by the need for strategic enterprise management, with GCCs now hiring VP-level and global function heads based in India or Southeast Asia.
Why It's Important?
The evolution of GCCs in India signifies a strategic shift in how multinational companies manage global operations. By relocating leadership roles to India, companies can leverage local talent and cost efficiencies while maintaining strategic oversight. This trend could lead to increased investment in Indian infrastructure and talent development, potentially boosting the country's economic growth. For U.S. companies, this shift may result in a more integrated global strategy, with India playing a crucial role in enterprise decision-making and innovation.
