How GCCs are Igniting Growth in India and Everywhere

In the recent past, India has experienced a great increase in the establishment of Global Capability Centers (GCCs), as a testament to the trend that more multinationals are now making the country their home for these set-ups. The GCCs provide the platform that helps India's tech talent to bloom in the context of innovation and growth.

'GCC landscape in India', as mentioned in the report published by Nasscom, is growing steadily and presently there are over 1580 active GCCs in the country.

A large pool of talents which is to the tune of 1.66 million people, proves a great change in the GCC startup ecosystem around India.

Interestingly, in the fourth quarter of the calendar year 2023, India witnessed the establishment of 10 new GCCs.

Notably, US-headquartered MNCs accounted for approximately 50% of these new GCCs, highlighting India's attractiveness as a strategic investment destination.

The report identified several key focus areas for the new GCCs, as well as the expansion centers of existing GCCs.

These include: Artificial Intelligence (AI), Machine Learning (ML), Advanced Analytics, Cybersecurity, Advanced Driver Assistance Systems (ADAS) solutions, In-vehicle Infotainment, AI Hardware Solutions, Powertrain, and Foundational IP Solutions.?

These focus areas highlight the strategic priorities of GCCs in driving innovation and addressing evolving market demands.

Experts Take

Puttegowda, Anil , Head of Strategy and Transformation for International Hubs, NatWest Group , said, "From India stems engineering competence and a diverse ecosystem of talent, startups, academia, and service providers that are becoming cornerstones for the success of GCCs in India. Fuelled by digitalization and a focus on innovation, India's GCC ecosystem is experiencing phenomenal growth, and NatWest stands at the forefront.”

Raghavendra Vaidya , MD & CEO of Daimler Truck Innovation Center India (DTICI) , said, “An extensive pool of highly qualified talent, competitive costs, stable governance, and a culture characterized by adaptability and strong work ethics are the main reasons why the growth of Global Capability Centers (GCCs) in India is driving uphill. India is no longer the back office of the world; we have witnessed an impressive growth trajectory from GCCs in the last decade.”

Rohit Kaila , Head of Technology and Site Leader, Wayfair India TDC, stated, “In the rapidly growing landscape of global corporate innovation, GCCs stand as pillars of growth and stability, driving India's ascent as a technology powerhouse. Wayfair's expansion into India in 2023 underscores the nation's capacity for large-scale innovation. By tapping into India's deep well of expertise, we are fostering an environment of agility, creativity, and end-to-end ownership.

Challenges and Opportunities

Every coin has two sides, and same is the case with this. GCCs also face a unique set of challenges, including talent retention, regulatory compliance, and geopolitical uncertainties.

However, these concerns come hand in hand with tremendous possibilities for development and change. It is through the adoption of new technologies, development of innovative mindset and cultivating talents that GCCs will be able to address challenges, and leverage opportunities which will result in sustainable growth and creation of value for the parent organization in the long run.

Conclusion

The rise of the GCC ecosystem in India signifies a significant milestone in the country's journey towards becoming a preferred destination for global businesses seeking to establish their presence and drive innovation.

With an increasing number of MNCs recognizing India's unparalleled advantages in talent and technology, the GCC landscape is poised for continued growth and expansion in the years to come.