Two sources familiar with the plans have informed Reuters that Costco Wholesale Corp., a US retailer, will establish its inaugural technology centre in Hyderabad, India. According to insiders, the Global Capability Centre (GCC) will hire 1,000 individuals at first and grow as it manages technology and research operations and collaborates with international teams.
Over the past few years, GCCs—once low-cost outsourcing hubs for multinational corporations—have changed and are now utilised to assist their parent companies in a variety of areas, such as everyday operations, finance, and research and development.
India’s Booming GCC Landscape: A Global Magnet
Some of the world’s most well-known brands already operate in India, including GCC names. This includes businesses like JPMorgan Chase, Walmart, and Target in Bengaluru, as well as McDonald’s, Heineken, and Vanguard Group in Hyderabad.
According to a report published late last year by the IT industry association Nasscom and consulting firm Zinnov, the market size of India’s global capability centres (GCCs) is anticipated to increase from $64.6 billion in fiscal 2024 to $99 billion to $103 billion by 2030.
Swedish Firms Strengthen Footprint in Indian Market
The relationship between New Delhi and Stockholm is closer than ever thanks to the growing opportunities for commercial investment in India and the regular bilateral visits from top leaders over the years.
After China and Japan, India is currently Sweden’s third-largest trading partner in Asia. Swedish businesses have significantly increased their presence in India over the past ten years. Approximately 86% of Swedish businesses reported that India’s business environment was encouraging and helpful, according to the India Business Climate Survey, 2023.
Additionally, the Indian government’s many efforts to facilitate the flow of FDI are essential in opening up a plethora of commercial opportunities for Swedish SMBs. India and Sweden celebrated 75 years of diplomatic ties in 2023, and in the years to come, both countries hope to deepen their current business engagement and collaboration.
Tobias Billström, the Swedish Foreign Minister, spoke to more than 100 business leaders in Bengaluru, India’s largest technological hub, in February 2024. The Confederation of Indian Industry (CII) and the Swedish Embassy hosted the meeting, which emphasised Sweden’s dedication to extending its commercial presence in India and the increasing significance of Swedish businesses in that country.
At the moment, the Swedish business community in India is represented in industries such as fashion, healthcare & pharmaceuticals, IT & telecom, retail & e-commerce, and renewable energy.
Atlas Copco, Astra Zeneca, Volvo Group, Electrolux, IKEA, H&M, SSAB, Autoliv, Spotify, and Truecaller are just a few Swedish businesses that operate in India. In addition to having production, distribution, and service facilities in India, several of these businesses have made significant investments in marketing, sales, and research and development.
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