Over 50 per cent of retail/consumer packaged goods (CPG) global capability centres (GCCs) in India have been established in the last eight years, noted an ANSR report. India will see over 25 additional retail/CPG GCCs established in the next 2-3 years, with Bengaluru continuing to be the preferred destination, hosting over 42 percent of these centres, the report indicated.
According to ANSR’s GCC Quarterly Landscape Report (Q2, 2024), the retail/CPG sector is among the fastest-growing GCC segments in India. Companies like BestBuy, 7-Eleven, Giant Eagle, Lululemon, and Adidas established centres between 2020 and 2024. In the past eight years, over 50 per cent of retail/CPG GCCs in India have been established, stated the report. With the rapid growth of GCCs in this sector, cities like Hyderabad and Delhi/NCR also seem attractive to these organisations.
Retail/CPG GCCs are developing new strategic capabilities, including marketing, which agencies previously managed. Now, this is increasingly being handled in-house within GCCs. Many companies have also transferred most merchandising functions to their Indian GCCs.
The report also noted that these centres gained momentum in 2024, with numerous setups and expansions, with cities like Hyderabad, Bengaluru, and Pune leading these developments. “These cities led in terms of center expansions during the study period, offering robust infrastructure, excellent connectivity, and supportive government policies, creating an optimal environment for global companies to establish and expand their operations,” the report stated.
GCCs leased over 37 per cent of the total office space in India during Q1 2024, amounting to over 5 million sq ft. Bengaluru is the top leasing city, accounting for 60 per cent of GCC leases, followed by Hyderabad at 26 per cent. Bengaluru also houses over 25 per cent of India’s digital talent, with over 325,000 professionals.
Alongside, GCCs continue to hire aggressively, with 50 per cent preferring to source talent from existing GCCs in India. Product companies and service providers constitute around 30 per cent and 20 per cent, respectively, of the total hiring. Compensation trends also show that GCCs offer 30-40 per cent higher salaries compared to IT/ITeS sectors. At 9.1 per cent, the average attrition rate in GCCs is significantly lower than the industry average.
Women comprise over 35 per cent of the workforce in Indian GCCs, and tech roles are expected to increase from 25 per cent to 35 per cent by 2027.