India The GCC Capital Of The World, Says Nasscom-Zinnov Report
India continues to be at the forefront of Global Capability Centers expansion strategy, with more than 400 new centres established in the last five years.
India continues to be at the forefront of Global Capability Centers expansion strategy, with more than 400 new centres established in the last five years, according to the September edition of the India GCC report by Nasscom-Zinnov.
What Are GCCs?
Global Capability Centers are set up in India by international organisations to carry out backend functions, support tasks and other strategic functions. This drives cost efficiencies for such organisations.
GCCs handle the technology, engineering and operations functions, including Shared Service Centers of MNCs in India.
Key Growth Levers Of GCCs In India
There are six growth levers that the Nasscom report has pointed out:
India holds the largest share of GCCs with more than 2,975 units.
In terms of the maturity roadmap, 44% of GCCs have transitioned into portfolio hubs over the last decade.
32% GCCs in the transformational hub have high product management intensity.
12% of all GCC workload is still outsourced to services providers.
More than 6,500 roles are outsourced in Indian GCCs, which is expected to cross over 30,000 in the next six years.
More than 1,20,000 artificial intelligence professionals are present across GCCs in India.
What's Special About GCCs In India?
Indian GCCs are building digital-first charters by investing in AI, cloud, cybersecurity and blockchain. Banking and financial services GCCs are moving from back office support to leading in data analytics, algorithmic trading and quantitative financial engineering, the report said.
Legacy GCCs are leveraging India's cybersecurity talent for advanced threat prevention. While, the newer ones are focusing on global and emerging market solutions, it said.
Location Read Through For GCCs
Global 2000 companies have significantly expanded their GCC presence in India with 23% of them having a center in India. Tier-2 and tier-3 cities of India continue to attract GCCs due to significant cost advantages and access to growing talent pool.
Ahmedabad, Coimbatore and Vadodara remain the key hubs. Government initiatives like Gujarat Semiconductor Policy 2022-2027 and the Madhya Pradesh IT, ITeS and ESDM Investment Promotion Policy 2023, have strengthened GCCs' presence in tier 2 and 3 cities.
