How Indian GCCs drive innovation and transformation in technology sector

With a strong emphasis on frugal innovation, quality, and sustainability, GCCs may drive India's digital transformation and become globally integrated enterprises, says experts.
 
 Haripriya, Jayapriyanka, Nivedita
 
Indian global capability centers (GCCs) have emerged as key players in India's transformation into a global technology and innovation hub. These centers, also known as captives, have evolved from cost arbitrage centers to Centers of Excellence, driving innovation, development, and strategic value for global enterprises. In a recent episode of Business Line's podcast, industry experts from NASSCOM discussed the evolution of GCCs and their future prospects.
 
The early GCCs in India, established in the 1980s, primarily leveraged cost advantages. However, in the past decade, there has been a significant shift towards innovation. GCCs now focus on creating value for businesses and customers, driving strategic initiatives, and solving complex business problems through innovative approaches. The centers have become instrumental in India's tech story, contributing approximately 48% of the global GCC market share and generating $45 billion in export revenue. They employ around 1.64 million people, with a majority engaged in digital product engineering.
 
The GCC landscape in India is concentrated in key cities like Bangalore, Hyderabad, Chennai, Pune, Noida, and Gurgaon. These centers have attracted global enterprises from Fortune 100 and Fortune 2000 companies, and their success has inspired new entrants to follow suit.
 
The future of GCCs in India looks promising, driven by various factors. The COVID-19 pandemic served as a tipping point, accelerating digital transformation and highlighting the importance of GCCs in enabling remote work and sustaining business operations. Additionally, India's strengthened business environment, predictable regulations, respect for privacy and intellectual property, and its strategic location in the Asia-Pacific region have increased global confidence in GCCs based in the country.
 
Looking ahead, GCCs in India are poised to create even greater value for all stakeholders. With a strong emphasis on frugal innovation, quality, and sustainability, these centers are well-positioned to play a crucial role in driving India's digital transformation and becoming globally integrated enterprises.
 
The growth of GCCs in India will be influenced by factors such as the expanding markets in Asia-Pacific, increasing investment in technology startups, and partnerships with governments and NGOs to shape industry ecosystems. The strategic outlook and transformative ambitions of GCCs will continue to drive their success in delivering value for businesses, customers, shareholders, and investors.
 
Indian GCCs have evolved into centers of excellence, driving innovation, and shaping India's position as a global technology and innovation hub. With a favorable business environment, a focus on frugal innovation, and a strategic outlook, GCCs are set to contribute significantly to India's digital transformation journey.
 
In this podcast, Haripriya joins KS Viswanathan, Vice President- Industry initiatives, NASSCOM, Sudish Panicker, MD and Head, BNY Mellon International Operations, and Siva Padmanabhan, MD & Head of Global Innovation & Technology Center, AstraZeneca India to discuss the transformation and highlights of GCCs in India.
 
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