India continues to be the prime destination for global companies to set up their capability centers. 18 new global capability centres (GCCs) were set up in here in H1 CY2023, according to a Nasscom-Zinnov Report.
As of FY2023, India is home to over 1,580 GCCs, with a total market size of $46 billion, growing at a CAGR of 11.4 per cent. The segment has not just expanded in terms of scale but also value. Of the 18 new GCCs established during the first half , approximately 83 per cent have all three functional areas of engineering R&D, IT and BPM.
Interestingly, around 55 per cent of the new GCCs in H1CY2023 have instituted or expanded in locations other than Bengaluru, the primary choice. Tier-II cities such as Vadodara, Nasik and Coimbatore saw the expansion of centers for established GCCs in verticals such as industrial, FMCG, retail, electrical and electronics and software and internet.
The country’s technological capabilities to drive innovation, availability of highly skilled digital talent, mature tech start-up ecosystem, and the peer GCC ecosystem are some of the key drivers that make India an attractive destination for setting up and expanding GCCs, the report noted.
Sukanya Roy, Head GCC and BPM at Nasscom, said, “With an unwavering commitment to cultivating domain expertise and embracing sustainable practices, India is positioned to transform into the premier hub for GCCs, catering to the comprehensive requirements in digitally skilled talent, strategic location, visionary leadership, and operational excellence.”
This robust ecosystem not only strengthens India’s tech industry but also fosters deep-seated collaborations with start-ups, educational institutions, and external partners to leverage India’s state-of-the-art technologies and drive innovation for their HQ organisations, she added.
Tech hubs
GCCs are increasingly acting as core tech hubs for their HQs, specialising in niche skills around cloud, artificial intelligence (AI), machine learning (ML), natural language processing (NLP), cybersecurity, Low Code No Code (LC/NC), advanced analytics, blockchain, Internet of Things (IOT).
As of June 2023, the 1,580 GCCs in India house over 1.66 million talented professionals. Indian GCCs act not only as the incubation ground for digital enablement but also actively handle the end-to-end digital requirements of their parent organisations. Both new as well as the expanding centers of existing GCCs are focusing on new-age technology areas such as data science, data and analytics, digital innovation, web applications, platform engineering, automation and software development. This further solidifies India’s position as a leading hub for niche digital skills, the report said.
SHARE
Published on September 8, 2023
