How India’s GCCs Are Leading Global Tax Operations
India’s Global Capability Centres (GCCs) are changing the game in global tax operations.
India’s Global Capability Centres (GCCs) have become crucial for multinational companies. They handle complex global tax tasks. These include corporate tax, indirect tax, transfer pricing, and litigation. A recent Deloitte India whitepaper highlights this shift.
The GCC Advantage
The report, “Transforming Global Tax Functions: The GCC Advantage,” shows how GCCs are evolving. They now provide high-value tax expertise, not just back-office functions. This change is driven by strong technical skills, digital transformation, and cost efficiency.
“GCCs have become a key part of the global tax ecosystem. They give organizations a competitive edge in managing tax functions,” the whitepaper notes.
More Tax Centres of Excellence
Manisha Gupta, a Partner at Deloitte India, wrote the report. It shows a rise in tax Centres of Excellence (CoEs) within Indian GCCs.
The findings reveal that 76% of respondents already manage global tax processes from their Indian GCCs. This shows India’s growing importance in enterprise tax transformation.
“As more organizations centralize tax functions, many have set up a tax CoE. The focus is now on key principles and building blocks for scaling these centres successfully,” the paper states.
India’s GCC Ecosystem is Growing
India’s GCC ecosystem has expanded rapidly. As of 2024, there are over 1,700 GCCs. They employ 1.9 million professionals and generate $64.6 billion in revenue. The sector is expected to grow to $105 billion by 2030. It will then have more than 2,400 centres and employ 2.8 million people.
Key GCC Hubs in India
- Bengaluru
- Hyderabad
- Pune
- Chennai
- Mumbai
- National Capital Region (NCR)
The whitepaper also notes that nearly 40% of all digital transformation projects are currently being executed through these centres.
GCC Focus is Shifting
The report highlights a shift in GCC focus from data processing to knowledge processing. Newer entrants are coming from countries like Germany, the UK, Japan, and Nordic nations. This shows a diversification in global investment sources and functions.
