India’s Global Capability Centers (GCCs) – the tech and operations hubs of multinational corporations – are rewriting the narrative of the country’s digital economy. With GCC revenue estimated to reach a staggering $178 billion in FY25, their contribution to India’s GDP is expected to touch 4.5%, signaling a massive structural shift in how we view the country’s tech sector
The Conflicting Growth Numbers: IT Services vs GCCs
Earlier, NASSCOM projected India’s IT services export growth at a modest 3.3% for FY24. However, the Karnataka Economic Survey placed the state’s IT services growth at 12.6% for the same period. Given that Karnataka houses nearly 40% of India’s IT industry, this significant divergence from the national average raised questions among industry watchers about the accuracy and methodology of existing growth estimates
The Turning Point: Rethinking Growth Through GCC Revenue
The growth disparity started to make sense when Wizmatic, a Pune-based consultancy founded by Sandeep Panat, introduced a new perspective: assessing India’s tech economy through GCC revenue rather than traditional IT services alone. According to Wizmatic’s analysis, FY23 GCC revenue was estimated at $103 billion — more than double NASSCOM’s reported figure. For FY25, projections include exports of $151 billion, total GCC revenue of $178 billion, and a contribution to India’s GDP of 4.5%
Why This Surge?
The post-COVID era triggered a global digitalization wave, pushing MNCs to prioritize resilience, automation, and scalability. India emerged as the digital transformation nerve center, with foreign companies aggressively scaling their operations here. As a result:
- MNCs accelerated their investments in Indian GCCs
- Export earnings from GCCs soared
- India’s foreign-backed IT/ITeS revenue outstripped that of Indian service providers
Methodology That Matters
Panat’s insights are rooted in RoC filings of over 1,800 foreign companies in India. These financial statements provide:
- Clear segregation of GCCs vs. India-focused sales entities
- Export revenues in dollar terms
- Rupee earnings from domestic contracts
This level of transparency helps create a far more accurate picture of India’s true digital exports and economic value from global players
The Bigger Picture: Time for NASSCOM to Rethink?
There is now widespread consensus that NASSCOM’s current methodology underrepresents GCC contributions. Encouragingly, the organization has revised its FY24 industry growth estimate from 3.3% to 9.9% , bringing it closer to the numbers projected by Karnataka and independent analysts like Panat
Conclusion:
India’s GCC ecosystem is rapidly evolving, shifting the country’s role in the global digital economy beyond traditional IT services. With a growing focus on innovation, AI, and automation, India is becoming a key player in shaping global business. Collaboration between GCCs, Indian service providers, and the government will be vital in unlocking the full potential of this sector
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