Introduction: The Strategic Pivot of Indian Firms in 2024-2025

In a rapidly changing global economic landscape, Indian companies are recalibrating their strategies to mitigate risks and harness new opportunities. According to a recent HSBC survey reported by Business Standard, a striking 87% of Indian firms are shifting their focus to the domestic market amid mounting global trade uncertainties. This strategic move has significant implications for professional services companies, global capability centres (GCCs), and the broader talent ecosystem in India.

This article explores the key findings of the HSBC report, analyzes the impact on GCCs and professional services, and highlights the critical role of talent partners like Han Digital in navigating this transition. We also reference recent research and provide actionable insights for organizations aiming to thrive in India’s evolving business environment in 2025.

Key Findings: HSBC Report on Indian Firms’ Domestic Focus

The HSBC survey conducted in mid-2024, which covered over 3,500 companies across 14 global markets, revealed a pronounced shift among Indian businesses towards the domestic market. The report highlights:

• 87% of Indian firms are prioritizing domestic growth over international expansion, a sharp increase from previous years.
• Rising global trade tensions, supply chain disruptions, and geopolitical uncertainties are key drivers behind this pivot.
• Indian companies are leveraging India’s robust economic fundamentals, a large consumer base, and government-led initiatives like Make in India and Atmanirbhar Bharat (Self-Reliant India).
• There is a renewed focus on digital transformation, innovation, and talent development to capture emerging domestic opportunities.

These findings underscore a significant realignment in Indian business strategy, with far-reaching consequences for both local and global stakeholders.

Why Indian Firms Are Shifting Focus: Trade Worries and Beyond

The global business environment in 2024-2025 is marked by volatility and uncertainty. Several factors are influencing Indian firms’ decision to pivot towards the domestic market:

1. Geopolitical Tensions: Ongoing trade disputes, especially between major economies like the US and China, have created ripple effects across global supply chains.
2. Supply Chain Disruptions: The aftermath of the COVID-19 pandemic, coupled with regional conflicts, has exposed vulnerabilities in global supply networks.
3. Regulatory Changes: Evolving trade regulations and protectionist policies in key markets have increased compliance costs and risks for exporters.
4. Domestic Market Potential: India’s growing middle class, increasing digital adoption, and supportive government policies are making the domestic market more attractive than ever.
5. ESG and Sustainability: Indian firms are increasingly aligning with global ESG standards, which are often easier to implement and monitor domestically.

These factors collectively make a compelling case for Indian firms to double down on domestic opportunities while cautiously navigating global markets.

Implications for Global Capability Centres (GCCs) in India

India is home to over 1,800 GCCs, employing more than 1.6 million professionals as of 2024 (NASSCOM, 2024). The shift towards domestic focus has several implications for GCCs:

1. Evolving Mandates and Service Portfolios

GCCs, traditionally established to serve global markets, are now being tasked with supporting parent organizations’ India-focused initiatives. This includes:

• Developing localized products and solutions for the Indian market
• Enhancing customer experience for Indian consumers
• Driving digital transformation and automation tailored to domestic needs

2. Talent Strategy Realignment

With increased emphasis on domestic operations, GCCs are seeking talent with deep understanding of the Indian market, regulatory landscape, and consumer behavior. There is a surge in demand for professionals skilled in:

• Product localization
• Regulatory compliance (Indian context)
• Data analytics and AI for Indian consumer insights
• Agile project management for rapid market adaptation

3. Collaboration with Local Ecosystem

GCCs are forging stronger partnerships with Indian startups, universities, and industry bodies to drive innovation and tap into local expertise.

4. Risk Management and Business Continuity

GCCs are building robust risk management frameworks to mitigate the impact of global disruptions and ensure business continuity for both domestic and international operations.

Professional Services Companies: New Opportunities and Challenges

Professional services firms—including consulting, legal, IT, and HR services—are uniquely positioned to help Indian companies and GCCs navigate this transition. Key trends include:

1. Advisory on Domestic Market Entry and Expansion

There is growing demand for market research, regulatory advisory, and go-to-market strategy services tailored to India’s diverse regions and sectors.

2. Digital Transformation and Automation

Professional services firms are assisting clients in adopting digital tools, automating processes, and leveraging data analytics to gain a competitive edge in the domestic market.

3. Talent Acquisition and Development

With the talent landscape evolving rapidly, firms are offering specialized recruitment, leadership development, and upskilling solutions to address skill gaps in areas like AI, cloud computing, and ESG compliance.

4. Risk and Compliance Management

Advisory services around risk assessment, compliance with Indian regulations, and business continuity planning are in high demand.

Recent Research: The Rise of India’s Domestic Market and GCC Evolution

Recent studies corroborate the findings of the HSBC report and provide deeper insights into the evolving landscape:

• NASSCOM’s GCC India Landscape 2024 (NASSCOM, 2024): Highlights the increasing role of GCCs in driving innovation for both global and domestic markets, with 40% of new GCCs in 2023-24 focusing on India-specific mandates.
• Deloitte’s 2024 India Business Outlook: Notes a 35% increase in professional services engagements related to domestic market expansion, digital transformation, and regulatory compliance.
• McKinsey’s India Talent Report 2024: Emphasizes the growing importance of local talent networks and leadership with India market expertise for sustained business growth.

These findings suggest that the convergence of domestic market focus, GCC evolution, and talent realignment will define India’s business landscape in 2025 and beyond.

Han Digital: Enabling Talent-Led Transformation in India’s New Business Era

As Indian firms and GCCs recalibrate their strategies, the role of talent partners becomes pivotal. Han Digital stands out as a leader in talent market intelligence, executive search, and workforce strategy for professional services and GCCs in India.

1. Deep Understanding of India’s Talent Market

Han Digital’s proprietary research and analytics provide real-time insights into talent availability, skill trends, and compensation benchmarks across India’s major cities and emerging hubs. This enables organizations to make informed decisions on workforce planning and location strategy.

2. Strong Connections with Senior Leadership

With established relationships with CXOs, HR leaders, and business heads across industries, Han Digital facilitates strategic talent conversations that align with business objectives. Their consultative approach helps organizations identify and attract leaders who can drive India-focused growth and innovation.

3. Customized Solutions for GCCs and Professional Services

Han Digital’s expertise spans:

• Setting up and scaling GCCs for domestic and global mandates
• Leadership hiring for India market expansion
• Diversity and inclusion strategies tailored to Indian talent pools
• Talent mapping and succession planning for critical roles

4. Thought Leadership and Market Intelligence

Han Digital regularly publishes whitepapers, talent market reports, and industry insights that help organizations anticipate trends and stay ahead of the curve in the dynamic Indian business environment.

Actionable Insights for Professional Services and GCC Leaders in 2025

Based on the latest research and market trends, here are key recommendations for leaders navigating the shift towards India’s domestic market:

1. Reassess Market Priorities: Evaluate the potential of India’s domestic market in your growth strategy. Identify high-growth sectors and regions aligned with your capabilities.
2. Invest in Local Talent: Build leadership teams with deep India market expertise. Partner with talent specialists like Han Digital to access top talent and market intelligence.
3. Enhance Agility and Innovation: Foster a culture of innovation and agility to quickly adapt to changing market dynamics and consumer preferences.
4. Strengthen Compliance and Risk Management: Stay updated on regulatory changes and build robust frameworks to manage risks associated with domestic and global operations.
5. Leverage Digital Transformation: Accelerate the adoption of digital tools and data analytics to drive efficiency, customer engagement, and business growth in India.
6. Collaborate with Local Ecosystem: Forge partnerships with Indian startups, academia, and industry bodies to drive co-innovation and tap into emerging opportunities.

Conclusion: India’s Domestic Market—The Next Frontier for Growth

The shift of 87% of Indian firms towards the domestic market, as highlighted by the HSBC report, marks a pivotal moment in India’s economic journey. For professional services companies and GCCs, this presents both challenges and unprecedented opportunities. Success in this new era will hinge on strategic agility, talent-led transformation, and deep market insights.

Organizations that proactively realign their strategies, invest in local talent, and leverage partners like Han Digital will be best positioned to capture the immense potential of India’s domestic market in 2025 and beyond.

Frequently Asked Questions (FAQs)

Why are Indian firms focusing more on the domestic market in 2024-2025?

Indian firms are prioritizing the domestic market due to global trade uncertainties, supply chain disruptions, regulatory changes, and the growing potential of India’s consumer base.

What is the impact on global capability centres (GCCs) in India?

GCCs are evolving their mandates to support India-focused initiatives, requiring new talent strategies, local partnerships, and enhanced risk management.

How can professional services firms benefit from this shift?

Professional services firms can offer advisory, digital transformation, talent acquisition, and risk management services to help organizations succeed in the domestic market.

What makes Han Digital relevant in this context?

Han Digital’s deep talent market intelligence, strong leadership connections, and customized solutions make it a valuable partner for organizations navigating India’s evolving business landscape.

References

• Business Standard: 87% of Indian firms shift focus to domestic amid trade worries: HSBC
• NASSCOM: India GCC Trends 2024
• Deloitte. (2024). India Business Outlook 2024.
• McKinsey & Company. (2024). India Talent Report.
• Han Digital. (2024). Talent Market Insights.