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“From Ageing Japan to Youthful India – GCCs Bridge the Talent Gap”

Japanese Firms Turn to India as GCC Hub Amid Workforce Crisis.                                                                                                                                                                                        

Japanese companies are accelerating their entry into India’s global capability centre (GCC) ecosystem, driven by an ageing population, labour shortages, and the urgent need for digital modernisation. With nearly 30% of Japan’s citizens over 65, its workforce is shrinking fast, prompting firms to tap into India’s vast tech talent, engineering skills, and innovation capabilities. India already hosts around 85 Japanese GCCs employing 1.8 lakh professionals, a number expected to nearly double by 2028 with investments of $2.5 billion. Major players like Sony, Hitachi, Toyota, MUFG, and Dai-ichi Life are scaling operations in India, focusing on IT, financial services, automotive design, and risk management. While Japanese firms remain cautious—often preferring Build-Operate-Transfer models and smaller centres averaging 500-750 employees—they are seeing 30–40% operational savings and enhanced innovation by offshoring. India’s maturing GCC ecosystem is helping Japan navigate its looming “2025 Digital Cliff,” making the country a strategic hub for growth and competitiveness.