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The evolution of Global Capability Centers (GCCs) has reached a tipping point, with India at the epicenter of this paradigm shift. As we enter the next phase of growth, India’s unique contribution to the global business landscape has become even more evident. This phase signifies a heightened level of maturity and progress. The significance of GCCs cannot be overstated – they drive efficiencies, accelerate innovation, and de-risk business.
GCCs have played a strategic role in the journey of globalization, and it’s high time we acknowledge them as catalysts for not only fostering a dynamic Service Provider community but also for nurturing a thriving start-up ecosystem. These centers are now definitively stepping into strategic roles, fostering innovation, and spearheading digital transformations for HQ organizations. Catalyzing this transformation is India’s abundant engineering talent skilled in emerging technologies such as Artificial Intelligence/Machine Learning, Blockchain, and Internet of Things (IOT). GCCs are also leveraging India’s vibrant and mature ecosystem of start-ups, academia, and other external partners to access top-notch talent, emerging technologies, and drive innovation.
In the dynamic landscape of India GCCs, which boasts over 1580+ GCCs and more than 2740 centers, a remarkable 5.9% CAGR has been clocked in FY 2023. These GCCs house 1.66 Mn+ installed talent, driven in part by the rise of tier-II GCC talent, which stands at 71,000+ in FY 2023. With a substantial market size of USD 46 Bn, GCCs are expected to soar higher over the next few years, growing at a 11.4% CAGR. Over the last two decades, Scale, Innovation, Delivery Excellence, and Leadership have been at the core of this remarkable evolution of Indian GCCs.
The Indian GCC ecosystem has become a sandbox of innovation, technologies, and transformation for global companies that are driving organization-wide initiatives. India GCCs are charting newer paths and architecting newer dimensions, by moving beyond the engineering aspects of their business, by venturing into new markets and focusing on managing value-added, business-critical operations, driving global functions to accelerate growth – clearly demonstrating an understanding of both business and technology aspects.
GCCs are also being entrusted with the responsibility of setting up new centers in other locations, thereby diversifying and mitigating risks. This shift in strategy reflects GCCs’ deep understanding of the intricacies involved in setting up newer centers from the ground up, but also showcases the deep autonomy that HQ organizations are tasking their Indian GCCs with. This is a clear indication of a proverbial seat at the global table and the implicit trust therein. GCCs are further adeptly monetizing their service capabilities, serving as a hub for as-a-Service transformation, expanding to new markets, creating accountability for newer hubs, and formulating policies with the government.
From India’s engineering prowess, GBS powerhouse, digital technology-first mindset, global leadership sandbox, networked globalization, talent strength, and driving sustainable value are the key growth pillars of the Indian GCC ecosystem, that are driving this transformation. As Indian GCCs definitively transition into GCC 4.0 wave, they will build niche competencies, cultivate global leadership, monetize services, and venture into untapped frontiers. This nasscom-Zinnov biennial report, “GCC 4.0: India Redefining the Globalization Blueprint,” offers a comprehensive understanding of this evolution. As the GCC ecosystem architects the new blueprint of GCC 4.0, it is with the mindset of redefining the art of possible.
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