Off shore offices / subsidiaries by MNC to handle business processes & services
India: 1800+ GCC, $64.6B revenue, 1.9M jobs
Factor behind many GCC in india
- skilled professional (IIT, IIM), english language
- strategic timezone to allow 24/7 ops for USA/EU
- stable economy, friendshoring, supply chain diversification strategies (eg. China+1)
- lower real estate cost, labour costs, favorable exchange rate
- hubs near metro cities, markets, commute
- favorable govt. FDI policy
- R&D support
- cluster effect, supply chain optimization
Challenges
- talent concentration
- wage inflation
- dependence on foreign firms