Nambiar emphasised that the growth of GCCs doesn’t signify a loss for the IT sector. Instead, both sectors are closely intertwined, creating a win-win situation for India. To further accelerate the growth of the sector—which has hired more people than IT services firms—Nasscom is working with various government arms to address key concerns facing GCCs, such as safe harbor provisions and advance pricing agreements. He added that the era of requesting tax incentives or sops is over; the focus now is on resolving these structural concerns.
Also Read: India’s GCC ecosystem set to hit $100 billion by 2030: report
“We are in talks at the highest levels… We’ll ensure that the government supports the industry by clearing these pathways. For instance, how should R&D and intellectual property (IP) be treated? These are the discussions we’re focusing on, rather than the traditional demands for sops,” said Nambiar.
Nambiar also acknowledged that the last couple of quarters have been challenging for the $254 billion IT industry due to macroeconomic and geopolitical concerns. However, the focus now is on restoring growth and leveraging emerging opportunities, such as artificial intelligence (AI), for the industry’s benefit.
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Despite these headwinds, Nambiar expressed confidence that the industry would reach its target of $350 billion in revenues by 2030.The strategy includes capitalizing on opportunities around AI and diversifying into newer markets such as the Middle East and Southeast Asia. “We are now slowly unlocking newer markets in regions like the Middle East and Southeast Asia,” he said. Nasscom has established regional councils in these geographies, marking a first for the organization, as it seeks to reduce its dependence on traditional markets like the US and UK.
On US work visa policies, Nambiar described the changes introduced by the outgoing administration as largely positive. However, he noted that Nasscom is adopting a “wait-and-watch” approach regarding the incoming Trump administration, which has recently suggested imposing tariffs on India.
“We’re waiting to see the broader impacts. Tariffs, for instance, would be a significant factor we need to evaluate,” said Nambiar.
Regarding the impact of AI on jobs, Nambiar said, “I wouldn’t worry, but I would prepare.”
He believes that concerns about AI replacing jobs are overestimated in the short term and underestimated in the long term. “AI won’t replace jobs. Instead, people using AI will replace those who don’t,” he said.
