Zoom, T-Mobile and Southwest Airlines Consider India GCC Establishments
Zoom, T-Mobile and Southwest Airlines are considering establishing global capability centres in India, joining recent entrants like Charles Schwab and Vanguard. L'Oréal announced plans for India's first beautytech GCC in Hyderabad with ₹3,500 crore investment through 2030. The post-Covid era has shifted GCC focus toward innovation and R&D rather than operational efficiency. India currently hosts over 1,800 GCCs employing 2.1 million professionals and contributing $68 billion to GDP.
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Videotelephony firm Zoom, telecom giant T-Mobile and low-cost airline Southwest Airlines are among the latest global companies considering establishing global capability centres (GCCs) in India. Industry sources indicate these companies are actively engaging in discussions with several states to explore potential setups, driven primarily by India's abundant tech talent availability.
Recent GCC Establishments Drive Interest
The interest from these major corporations follows a series of successful GCC launches by prominent global firms. Texas-headquartered financial services firm Charles Schwab announced the launch of its Hyderabad centre in December, while American investment services giant Vanguard opened its first India GCC in November in the same city, which is expected to become its largest tech hub globally.
| Company | Establishment Timeline | Location | Significance |
|---|---|---|---|
| Charles Schwab | December | Hyderabad | New financial services centre |
| Vanguard | November | Hyderabad | First India GCC, largest tech hub globally |
| L'Oréal | Announced | Hyderabad | First beautytech GCC in India |
| Heineken | Last year | Hyderabad | Brewery sector expansion |
Major Investment Commitments
French cosmetics firm L'Oréal made a significant announcement on Monday, revealing plans to establish India's first beautytech GCC in Hyderabad with an initial investment of ₹3,500 crore through 2030. Netherlands-based brewer Heineken also established a GCC in Hyderabad last year, demonstrating the city's growing appeal across diverse industry sectors.
Geographic Distribution and Government Engagement
The GCC establishment activity extends beyond Hyderabad to multiple Indian cities. Experts identify Mumbai, Bengaluru, Chennai, Pune, Delhi-NCR and Gujarat International Finance Tec-City (GIFT City) as key locations in consideration for GCC investments.
Karnataka industries minister MB Patil announced that Finnish telecom company Nokia Corp expressed interest in establishing a GCC and research centres in Karnataka during meetings at the World Economic Forum summit in Davos. Similarly, the Telangana government engaged with FMCG conglomerate Unilever at Davos to explore GCC establishment possibilities in Hyderabad.
Evolution of GCC Focus Areas
The post-Covid era has marked a significant shift in GCC establishment motivations. Companies now primarily focus on research and development, innovation, and business transformation, leveraging digital technologies including cloud, analytics, AI, IoT and cybersecurity. This represents a departure from the pre-Covid emphasis on operational efficiency and business effectiveness.
Prominent companies establishing innovation-focused GCCs include:
- Nvidia
- Amgen
- Airbus
- Workday
- Infineon
- eBay
- Medtronic
Market Scale and Economic Impact
According to Everest Group estimates, India currently hosts over 1,800 GCCs serving more than 1,200 global enterprises. These centres employ 2.1 million professionals and directly contribute approximately $68 billion to the nation's gross domestic product, representing 1.6% of GDP.
| Metric | Scale |
|---|---|
| Total GCCs | Over 1,800 |
| Global Enterprises Served | More than 1,200 |
| Professionals Employed | 2.1 million |
| GDP Contribution | $68 billion (1.6%) |
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