During the presentation of the 2024-25 budget on February 16, the government of Karnataka announced that it will introduce a Global Capability Centre (GCC) policy to attract higher investments in the sector. Chief Minister Siddaramaiah, who also holds the Finance portfolio, informed that Bengaluru currently has over 400 Global Capability Centres.
A GCC is a dedicated offshore unit established by a company in a foreign country to in-source IT and other related business functions.
According to the latest report by Nasscom-Zinnov, Karnataka accounts for approximately 40% of the roughly 1,600 Global Capability Centers (GCCs) present in India.
Bengaluru has bagged seven out of the 21 GCCs set up between July and September 2023. In the Budget for 2023-24, Karnataka stated that 35% of the human resources under the GCC ecosystem are present in Bengaluru. To maintain its dominance, priority was given to strengthening the digital infrastructure in tier II and tier III cities, with the slogan "Beyond Bengaluru."
In 2022, the Karnataka state government introduced the "Karnataka Startup Policy 2022-2027". As per the policy, the government plans to promote industry partnerships between technology institutions and the existing GCC ecosystem in Karnataka.
Over the years, many captive centres have been established in India, indicating the growing importance of IT operations for multinational corporations. Due to cost and talent advantages, India has become a preferred location for companies to invest in. Bengaluru, in particular, has a supportive ecosystem that provides the necessary IT talent for GCCs to flourish.
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