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Zinnov-nasscom India GCC Trends – Quarterly Analysis – Sales & Marketing – Q3 2023

Zinnov-nasscom India GCC Trends – Quarterly Analysis – Sales & Marketing – Q3 2023

12 Dec, 2023
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As India sets its sights on becoming a USD 5 Tn economy in the next decade or so, an under-appreciated engine powering this aspirational vision is Global Capability Centers (GCCs), also known as Global In-house Centers (GICs). The strategic role of these centers in fostering innovation, operational efficiency, and global collaboration is pivotal for India’s economic growth.

Amidst these ambitions, the year 2023 unfolded with heightened challenges driven by geopolitical tensions, macroeconomic headwinds, shifting workforce priorities, and more. Ongoing conflicts like the Russia-Ukraine war have created global instability and supply chain crises that hampered international business.

However, despite the testing global environment, the resilience of India’s GCC landscape becomes evident, showcasing its ability to weather external uncertainties. India has continued to cement its standing as a premier GCC hub, offering crucial location diversity to mitigate geographic risks. Its vast talent pool offers a skilled workforce to fuel enterprise innovation requirements.

gcc-4-0-indian-gcc-ecosystem

India Solidifying Itself as a Global Hub

India’s GCC market size is currently valued at a substantial USD 46 Bn, with an anticipated impressive growth rate of 11.4% CAGR. This scale and growth momentum not only signals India’s cost advantages but also highlights the fast-developing skill proficiencies that global corporations require, especially amidst the ongoing global crises.

A noteworthy indicator of this growth trajectory is the addition of 21 new offshore centers or GCCs in just Q3 2023. These expansions span diverse industries, including Software, Biotechnology, FMCG, and more, reflecting the breadth of India’s appeal. The influx of GCCs extends beyond the well-established Tier-I hubs like Bengaluru, NCR, and Mumbai to embrace emerging Tier-II centers such as Ahmedabad and Pune. It underscores India’s ability to cater to diverse GCC requirements – Tier-I locations provide world-class infrastructure and robust talent pipelines while Tier-II cities offer additional cost optimization, talent pool depth, and geographic risk mitigation. The expanding Tier-II footprint points to the country’s broadening GCC value proposition.

Mature GCCs now execute integrated, high-value workloads worldwide spanning areas like Clinical Research, Advanced Analytics, and more – transitioning from basic tasks to mission-critical capabilities integrated into global operations. This shift beyond initial labor arbitrage indicates the fulfilling promise of India’s talent and digital-first economy attributes.

Emergence of New Knowledge-Economy

The cultivation of niche capabilities within Indian offshore centers also heralds new pillars emerging for India’s economy, centered around knowledge and innovation. These include futuristic competencies like Artificial Intelligence (AI)/Machine Learning (ML), Clinical Research, Advanced Database Management, Robotics, and Predictive Modeling. Instead of generic support functions, these competencies create differentiated value by enabling breakthrough products, discoveries, and customer experiences.

Zinnov-nasscom India GCC Trends

Automotive, and Aerospace & Defence - H1 2023

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Marketing & Sales – Fanning the Flames of Growth

As India’s GCC ecosystem matures, Marketing & Sales functions are rapidly gaining prominence as key drivers of innovation and competitive advantage. Leading organizations are aggressively building out these competencies across India locations to tap into specialized talent and optimize global operations.

Bengaluru has emerged as the foremost hub for both Marketing and Sales centers, with its world-class infrastructure and deep talent pools catering to cutting-edge requirements. It leads in hosting centers of leading brands like Oracle, SAP, Adobe, and AstraZeneca to name a few. However, Mumbai and NCR also host strong clusters given their metro advantage.

India now represents approximately 35% of global sales talent and 32% of Marketing talent – affirming its position as a principal offshoring destination for these functions. Over 100 dedicated Sales centers employ around 10,000 specialists, while Marketing centers are expanding swiftly.

The Marketing ecosystem is transforming rapidly under the influence of AI/ML and Automation. Specialized roles are arising around Content Generation, Personalization, and Campaign Optimization leveraging these technologies. Sales teams are also adopting analytics and customer experience capabilities. Strategic hiring from India’s services talent base can further elevate competencies.

This rapid adoption of technology necessitates a comprehensive talent strategy by companies to stay competitive. This includes urgent reskilling of existing teams on emerging areas like Data Analytics, personalization, and campaign design to elevate competencies. Simultaneous targeted hiring of niche skill roles like Content Generation Specialists and AI Optimization Experts can bridge competency gaps that reskilling alone cannot address quickly enough. A multi-pronged approach encompassing reskilling, external hiring, external partnerships, and change management is essential for companies to keep pace with the technology-led advancement redefining marketing and sales. Reliance solely on legacy hiring and work practices will only widen the skills gap as roles transform under automation. By proactively embracing change, companies can stay ahead of the curve.

As global enterprises increase reliance on Marketing and Sales to drive revenue, India with its fusion of cost efficiencies and world-class capabilities is primed to anchor these functions. Its talent abundance and rapid assimilation of digital trends provide a sustained competitive edge.

CTA 90 Days accelerator model

The Way Forward

For organizations seeking strategic offshoring partnerships, India stands as an unrivaled destination. The robust expansion of Global Capability Centers (GCCs) across diverse Indian locations, coupled with their proficiency in emerging technologies, positions the country as a dynamic global capability hub. The synergy between GCCs and technology service majors, when fully harnessed, has the potential to set a transformative flywheel in motion for India.

As India gears up to become a leading global power, nurturing these engines of growth promises to catalyze broader socio-economic development. The integration of India into worldwide business value chains and knowledge networks becomes increasingly feasible through the strategic collaboration of GCCs and technology giants. This symbiosis not only facilitates operational efficiencies but also fuels innovation, skill development, and job creation on a global scale.

For global enterprises, the message is clear – India is ready to be a mission-critical partner, offering a unique blend of operational excellence, pioneering solutions, and a competitive edge. The runway for India’s continued growth in this space signifies an opportunity for companies to align with the world’s next innovation powerhouse.

This conclusion, framed within the context of the report titled, “Zinnov-nasscom India GCC Trends — Quarterly Analysis Q3CY2023”, aims to provide a snapshot of the quarter that was, while also showcasing the maturity of the established GCCs in the Sales and Marketing function. Through case studies of well-established and mature GCCs in Sales and Marketing, this edition of the report emphasizes the fact that India’s mature ecosystem is much coveted and that GCCs have made themselves indispensable parts of HQ.

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VIEW Report
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  • Zinnov Nasscom India Gcc Trends Quarterly Analysis Q3 2023 Report 11dec20231 Scaled
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  • Zinnov Nasscom India Gcc Trends Quarterly Analysis Q3 2023 Report 11dec20234 Scaled
  • Zinnov Nasscom India Gcc Trends Quarterly Analysis Q3 2023 Report 11dec20235 Scaled
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Tags:

  • Global Capability Centers
  • Global Captive Centers
  • Global In-house Centers
  • India GCCs
  • India GICs
  • India Global in-house Centers
  • Marketing
  • Sales
  • Setting up Global Capability Centers
Authors:
Achyuta Ghosh, Head & Senior Director - Insights, nasscom
Sukanya Roy, Director - GCC & BPM, nasscom
Vandhna Babu, Principal Analyst, nasscom
Mohammed Faraz Khan, Partner, Zinnov
Animesh Kumar Jain, Project Lead, Zinnov
Harshal Gadgil, Consultant, Zinnov
Supratim Paul, Senior Analyst, Zinnov

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