The Dandamis Effect: Inside India's GCC Dominance

In his quest for knowledge, Alexander the Great sought out the sage Dandamis in the forests of India. When asked about India's riches, Dandamis replied,

"India's true riches lie not in gold or jewels, but in the minds and hearts of its people."

Dandamis' words ring true even today, as India's greatest resource - its people - continue to drive the country's growth and success in the global business arena. The extension of this is reflected in the thriving ecosystem of Global Capability Centers (GCCs), showcasing how India’s rich talent pool has become its most valuable asset.

With over 1,600 GCCs employing more than 1.6 Mn people, India has become a hub of global talent, attracting companies from around the world who seek to tap into the country's vast pool of skilled professionals. From cutting-edge technology to business strategy, Indian talent is at the forefront of shaping the future.

Why MNCs are coming to India to set up their GCCs?

The reason that brings global organizations to India today mirrors the same curiosity and respect for knowledge and wisdom that drew Alexander the Great to the sage Dandamis.

India's ascent as the "GCC capital" is underscored by its robust framework, meticulously developed over decades. The maturing GCC landscape in the country is powered by strategic pillars: a rich talent pool capable of complex tasks, a strong culture of innovation, a commitment to high-quality work, and visionary leadership driving international capabilities across multiple sectors. This solid foundation has set the stage for the 3Vs - Volume, Value, and Velocity - that define the work conducted in India's GCCs.

GCCs in India are consistently growing at about 6% each year, and are redefining how global enterprises compete. These GCCs are expanding their mandates into new areas of value creation, enriched by local market insights. It's no wonder organizations are eager to tap into such a thriving environment.

But what are the key elements that fuel this success?

1. Academic Strength and STEM Focus: India's universities are a breeding ground for exceptional talent, churning out 2.3 Mn STEM graduates annually. These skilled professionals offer a unique combination of technical know-how, strategic thinking, and acumen to the table, making them highly desirable to global companies.
2. Maturity of the GCC Ecosystem: India's Global Capability Centers (GCC) are thriving, growing at 6% yearly, driven by high quality, transparency, and mutual trust. For instance, Zinnov has successfully launched at least 10 new centers in the past two years alone, with these centers reaching operational efficiency and beginning to impact their top line in as little as 90 days. This swift progress underscores the strong infrastructure and processes in India, encouraging innovation, and product ownership.
3. Government Support: The Indian government has been instrumental in creating a conducive environment for GCCs to thrive. Supportive policies in areas like R&D, intellectual property, and ease of doing business have boosted the confidence of multinational corporations and encouraged them to set up their GCCs in India.
4. Confidence Magnet: The success stories of existing GCCs in India act as a powerful magnet, attracting more and more companies to the country. In fact, in the year 2023, as many as 47 global organizations came to India to set up their centers. This virtuous cycle of trust and confidence, driven by tangible results and a thriving community of GCCs, further reinforces India's position as the go-to destination for setting up global capability centers.
5. Global Impact: India's GCCs are not only driving growth and innovation for their parent companies but also significantly impacting the global business landscape. With Indian talent at the forefront of cutting-edge technology and business strategy, these GCCs are projected to account for 20,000 global roles by 2030, cementing India's position as a leader in driving innovation and growth worldwide.

As the great Indian philosopher, Rabindranath Tagore, once said, "You can't cross the sea merely by standing and staring at the water." To truly unlock the potential of India, global organizations must leap and immerse themselves in India’s vibrant ecosystem.

Written by: Sachit Bhat, Senior Associate - Marketing & Communications, Zinnov