Retail giant Costco to arrive in India with 1,000 jobs
What's the story
US retail giant Costco is set to open its first Global Capability Center (GCC) in Hyderabad. The facility will handle technology and research functions for the company. According to Reuters, the center will start with an initial workforce of 1,000 employees and expand over time. The move marks a major step in India's evolution as a hub for global firms' key operations beyond just outsourcing.
Evolution
GCCs in India are no longer just outsourcing hubs
GCCs in India have come a long way from being low-cost outsourcing hubs for global firms. They are now integral to supporting parent organizations in multiple functions, including daily operations, finance, and research and development. Major international firms like JPMorgan Chase, Walmart, Target, McDonald's, Heineken, and Vanguard Group already have their GCC operations set up in India.
Market growth
India's GCC market size to reach $105B by 2030
The market size of India's GCCs is projected to grow from $64.6 billion in fiscal 2024 to between $99 billion and $105 billion by 2030. The forecast comes from a report released last year by IT industry body Nasscom and consulting firm Zinnov. This projection highlights India's growing importance as a global hub for business operations and research functions.