Looking to set up a GCC? Read the Tale of Two Indian States

Looking to set up a GCC? Read the Tale of Two Indian States

What’s stopping your organization from tapping into the rapidly growing GCC ecosystem?

India remains the global epicenter of Global Capability Centers (GCCs), and two states, Karnataka and Andhra Pradesh are rolling out the red carpet for MNCs. Their new policies for 2024-2029 are bold, future-ready, and aimed at making these regions irresistible for global enterprises looking to scale innovation, reduce costs, and access world-class talent.

But which state aligns with your organization’s vision?

Comparision chart - Karnataka vs Andhra Pradesh GCC Policies

?What’s Missing in the Policies and How MNCs Can Bridge the Gap

Karnataka as the Innovation Giant

The gap: Karnataka’s reliance on Bengaluru as its primary GCC hub poses risks of congestion, rising costs, and over-saturation. While its “Beyond Bengaluru” initiative is promising, it can do with clearer execution plans.

What MNCs can do:

  • Expand operations to secondary cities like Mysuru and Mangaluru to reduce costs while retaining access to skilled talent.
  • Tap into Karnataka’s Centers of Excellence for R&D in AI, IoT, and robotics. Collaborative R&D projects with these CoEs could help MNCs fast-track product development and innovation.
  • Advocate for better regulatory frameworks to facilitate hybrid/remote work models, which are increasingly critical post-pandemic.

Andhra Pradesh as the Emerging Challenger

The gap: Andhra Pradesh’s over-reliance on Visakhapatnam limits its potential as a broader GCC destination. Additionally, talent retention remains a challenge, with skilled workers often migrating to larger metros.

What MNCs can do:

  • Invest in developing Vizag into a global innovation hub while lobbying for similar infrastructure in cities like Vijayawada.
  • Build partnerships with Andhra’s educational institutions to upskill talent and create bespoke leadership pipelines.
  • Leverage the state’s incentives to create hybrid and remote work setups, tapping into local talent across the state without the need for centralized offices.

Strategic Recommendations for MNC Leaders

1. Think Beyond the Obvious

Bengaluru and Vizag might grab headlines, but the real opportunities lie in emerging hubs like Mysuru, Vijayawada, and Tumakuru. These cities offer affordable operations, fresh talent pools, and government-backed incentives.

2. Collaborate with Local Institutions

Whether it’s Karnataka’s IISc or Andhra Pradesh’s IITs and IIITs, building academic partnerships can provide a steady stream of skilled professionals tailored to your GCC’s needs.

3. Leverage Innovation Hubs

Karnataka’s Centers of Excellence and Andhra Pradesh’s Ratan Tata Innovation Hub are ripe for partnerships. These platforms can help MNCs co-create solutions, drive digital transformation, and solidify their presence as global innovators.

4. Prioritize Talent Branding

Both states are competing for the best talent, and your employer brand can play a decisive role. Highlight your GCC’s focus on innovation, hybrid work culture, and opportunities for career growth to attract top-tier professionals.

5. Advocate for Policy Refinements

Engage with state governments to shape future policies. Focus areas could include simplifying regulatory frameworks, expanding secondary hubs, and offering greater incentives for hybrid work adoption.

Comparison Grid | Bengaluru (Karnataka) vs Hyderabad (Telangana) for GCCs

Bengaluru vs Hyderabad GCC comparison. Amravati is the capital of Andhra Pardesh

Recommendation

  • Bengaluru: Best suited for organizations prioritizing access to a larger talent pool, established R&D networks, and vibrant innovation ecosystems. Prepare for higher costs and attrition rates, coupled with urban infrastructure challenges.
  • Hyderabad: Ideal for organizations seeking cost efficiency, supportive government policies, and better urban infrastructure. However, competition is rapidly growing, and its ecosystem is still evolving compared to Bengaluru.

Your Next Move

The Karnataka and Andhra Pradesh GCC policies are more than just plans on paper, they’re roadmaps to transform India into a global innovation powerhouse. But success depends on how well MNC leaders leverage these opportunities.

So, what’s your strategy?

Will you build the next great innovation hub?

Looking for partners (micro GCCs or mega) who can help you align your vision with these policies and benefit from these policies?

Keen to build your state's or city's GCC policy?

Reach out, and let’s have a chat.

Keen to amplify your GCC’s employee communications and branding? Book a call today: https://topmate.io/aniisu

Missed earlier articles?

Look them up here:

GCC strategy, communications and branding

Is your Global Capability Center Pulling its Weight? 7 Ways to take Stock.

Road Mapping Global Capability Centers Communication Priorities and Progression

4 Communication Strategies to Consider when Expand your Global Capability Center Network

Differentiate your Global Capability Center Using These Tips

Five Communication Dilemmas that Global Capability Centers Must Overcome

5 Tips to Turnaround a Global Capability Centers' Communication Team

5 Communication Mistakes Global Capability Centers can Avoid

Placing Communication at the Heart of Global Capability Centers

The Critical Role of Communications at Global Capability Centers

Three Approaches to give Global Capability Centers an Edge

3 Ways Global Business Services Leaders can Build a Strong Social Media Presence

Why Global Business Services Leaders Must Focus on Building Thought Leadership

Culture and Communication - a Missed Opportunity for Global Business Services Leaders (Part 2)

Culture and Communication - a Missed Opportunity for Global Business Services Leaders (Part 1)

Communication as a Center of Excellence - Building a Strategy

Communications as a CoE for Shared Services Success

Five Approaches to Contribute to the Global Business Services Ecosystem

Are Global Business Services Organizations differentiating their Brands Locally?

6 Ps to Differentiate Your Global Capabiluty Center

Integrating a New Global Capability Center - 4 Communication Strategies to Make Change Effective

Tapping the Power of Ideas in Shared Services Centers

Building an Inclusive Shared Services Leaders Communication Plan

Designing a Consistent Business Problem Solving Forum in Global Capability Centers

5 Communication Approaches for Successful Knowledge Transitions

Crafting a Consistent Global Business Services Social Media Strategy


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Surag Ramachandran

Technical Documentation Leader | Expert in Marketing & Instructional Design as well

1 个月

The article reveals an exciting inflection point in India's GCC evolution. Beyond robust policies in Karnataka and Andhra Pradesh lies an unprecedented opportunity to harness India's distributed talent advantage. Each emerging hub brings unique strengths - Mysuru's deep tech expertise, Mangaluru's specialized talent pools, and Vijayawada's engineering excellence. Smart GCCs are reimagining their footprint as interconnected innovation networks. They're building integrated ecosystems where each location amplifies specific capabilities while contributing to the broader innovation mandate. This approach transcends traditional hub-and-spoke models to create multiple centers of excellence. The next wave of GCC growth will be led by organizations that can orchestrate these distributed talent networks while deepening domain expertise across locations. The foundation laid by state policies enables a transformative opportunity - to build world-class innovation capabilities powered by India's rich talent landscape.

回复
Peter Yorke

Senior Vice President Marketing at SunTec Business Solutions

1 个月

Finally it's about Talent. While policies in Karnataka and Andhra Pradesh provide a strong foundation, the success of GCCs ultimately depends on harnessing talent. This requires looking beyond traditional hubs to the untapped potential of Tier 2 and 3 cities. Emerging hubs like Tumakuru, Hubballi, Kurnool, Trivandrum, Kochi, and Coimbatore offer cost advantages, access to skilled talent, and opportunities for regional economic development. Companies must build strong employer brands, partner with local institutions, and adopt flexible work models to bridge gaps in infrastructure and policy. The GCC ecosystem in India is evolving rapidly. Success lies in bold, inclusive innovation and models as well as leveraging talent as the key driver for growth.

Toby Joseph

Corporate Communications | Civil Aviation ??

1 个月

Hi Dr. Aniisu K Verghese Ph.D., I feel there is a strong case to be made for Kerala here. Karnataka definitely has the largest IT pool, but most of it consists of those holding STEM qualifications from other states, including Kerala and Tamil Nadu. Kerala definitely has as many STEM graduates as Andhra Pradesh and it is not hard to attract qualified and experienced IT talent from Karnataka to Kerala, especially those belonging to Kerala in the first place. Kochi offers both metro connectivity as a means of urban transport as well as co-working spaces that support hybrid/remote work. Plus established Centers of Excellence. Being a Tier 2 city, it doesn't have the high cost of operations associated with Bangalore, but there are advanced tech parks at Kochi (including satellite hubs on the outskirts of the city) and Thiruvananthapuram. As regards technology, there is a lot of innovation involving the use of AI and machine learning as well. All these are why IBM chose not only to establish a GenAI Innovation Center in Kochi, but also a Client Innovation Center, which came up in 2022 itself. The first-ever Nissan Global Digital Hub worldwide came up at Thiruvananthapuram even earlier in 2018.

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