GCC sector to add 2.8-4 mn jobs by FY30 in India, raise compliance needs for operators: Report

Mumbai, Nov 12 (PTI) India's emergence as a hub for Global Capability Centres (GCCs) with a potential to create 2.8-4 million new jobs by 2029-30 has brought to light the sector's need to meet various legal obligations, according to a report.

The report by TeamLease, GCCs in India: Cultivating Capability, Ensuring Compliance', revealed that India hosts over 1,800 GCCs, accounting for 55 per cent of the world's total, employs 1.9 million professionals and generates USD 64.6 billion in export revenue in FY25.

According to the report, India's GCC sector is projected to add another 2.8-4 million jobs by FY30. Nearly one in five of these will be for freshers with digital skills in AI, cloud, data engineering, and cybersecurity, underscoring the growing shift towards a "digital-first" workforce.

However, this rapid expansion is unfolding within an increasingly intricate regulatory landscape.

Each GCC operator must comply with more than 500 distinct legal obligations, leading to over 2,000 annual legal obligations across central, state, and local levels.

The compliance framework spans labour, tax, and environmental laws, involving 18 regulatory bodies and multiple overlapping provisions.

The report highlights critical compliance areas for GCCs in India, including data privacy, cybersecurity, FDI/FEMA, labour laws, women's safety, IP protection, environmental responsibilities, and operational mandates like fire safety and canteen regulations.

Neeti Sharma, CEO, TeamLease Digital, said, "India's GCC ecosystem is emerging as a key pillar of formal employment and skill development. It is projected to create between 2.8 and 4 million jobs by FY30, reflecting the sector's growing depth and resilience.

"Around 14-22 per cent of new hires will be freshers equipped with digital skills in AI, cloud, and data engineering, while mid-level professionals will make up 76-86 per cent of the workforce." This evolving talent mix is driving innovation, advancing product development, and positioning India as a global hub for specialised digital capabilities. Therefore, there is an increasing need for technology-enabled compliance transformation in the sector, she added.

Rishi Agrawal, Co-Founder and CEO, TeamLease RegTech, said, "Global corporations increasingly establish capability centres in India, capitalising on its demographic advantages, English-speaking workforce and competitive operational environment. As these operations expand, organisations must develop a comprehensive understanding of India's intricate regulatory framework." The regulatory landscape encompasses over 1,500 legislative acts and rules, generating approximately 69,000 distinct compliance obligations distributed across three tiers of government and these requirements span 27 compliance categories, with regulatory updates published through more than 3,500 official websites, he stated.

"Navigating this complexity requires more than surface-level compliance management. Global Capability Centres must cultivate deep expertise in Indian legal nuances, implement rigorous record-keeping systems aligned with statutory requirements and embed compliance into organisational culture," he added.

The Union Budget 2025 proposal to introduce a National Framework for promoting GCCs in tier II cities is expected to give further momentum to this shift, said the report.

The next phase of GCC expansion will depend on how effectively policymakers, industry, and academia collaborate to build a digitally skilled, compliance-ready workforce, it added.

This report is a combination of proprietary data and secondary research to analyse the evolving landscape of GCCs in India. Data was sourced from internal databases, industry reports, government publications, and credible public sources. PTI SM HVA