India Emerges as Prime Destination for UK Companies Setting Up Global Capability Centres

UK enterprises are looking to India for cost-efficient Global Capability Centres amid skilled workforce boom.

India has become an attractive destination for UK enterprises looking to establish Global Capability Centres (GCCs), thanks to its cost-effective digital infrastructure and skilled workforce, according to a report by Inductus GCC cited by Entrepreneur India.

The key advantages of setting up GCCs in India include cost savings and lower operational and labour costs compared to the UK, making it an attractive option for companies looking to reduce costs. India offers access to a skilled workforce with a vast pool of professionals with expertise in technology, finance, engineering, and operations, allowing companies to tap into top talent. 

Additionally, India is rapidly becoming a hub for digital transformation with cutting-edge innovations in areas like artificial intelligence, machine learning, and cloud computing enabling companies to stay ahead of the curve.

India also provides scalability with a large, flexible labour force allowing companies to scale operations quickly and adapt to changing market conditions. The country also offers tax incentives, including SEZ benefits, multiple GCC-friendly policies, and pro-business reforms, making it a highly attractive investment destination.

Ongoing discussions around a Free Trade Agreement (FTA) between the UK and India are expected to further enhance economic synergy between the two countries.

However, UK enterprises face several challenges, including economic uncertainty, which is reported by 29% of enterprises as a challenge. 18% of enterprises cited labor costs and competition as major challenges, while 17% pointed to a lack of domestic demand. 

Despite these challenges, India's advantages make it an attractive alternative for UK enterprises looking to set up GCCs, providing access to cost-efficient operational models, a technically proficient workforce, and advanced digital infrastructure.

The Inductus report notes that UK companies such as HSBC, Standard Chartered, and Barclays have already set up their GCCs in India. With skilled labour in India being 60-70% cheaper compared to the UK, companies can leverage significant cost advantages by setting up GCCs in the country.