Indian GCCs Need to Build a Success Roadmap for the Future: Experts Indian GCCs are a USD 65 billion business within the USD 254 billion IT sector in the country, employing 1.9 million people. Of this, Karnataka contributes 34 per cent to the GCC sector.
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While global capability centers (GCCs) in India have come a long way from being backoffice operations center to being the nerve center, they should now prepare a success roadmap for the future to stay relevant, experts said at the ongoing Bengaluru Tech Summit.
Indian GCCs are a USD 65 billion business within the USD 254 billion IT sector in the country, employing 1.9 million people. Of this, Karnataka contributes 34 per cent to the GCC sector.
According to a Nasscom-Zinnov report, India had about 1,600 GCCs as of 2022-23, with multiple GCCs added every quarter. Several factors, such as access to a wide pool of digitally skilled talent, the drive to adopt new technologies, and the imperative to make a greater customer impact, are driving the growth of the GCC ecosystem in the country.
"GCCs are no longer backoffice operations. SAP in India is now 16,000-employee strong…we started off with localization of ERP solutions for APAC…and took a conscious call not to run as an offshore unit but to integrate India among our four global hubs," said Milesh J, Head of Strategy & Operations, SAP Labs India. "We aim to be a business AI company."
In the short term, GCCs will need to up their game in skilling in AI, quantum computing, and expand the leadership capabilities, Milesh said.
Over the years, GCCs in India have changed in terms of ownership and capabilities, said Andrea Zimmerman, SVP and President of Target in India.
Target in India started in 2005 and it is in its 20th year now. "Every single capability is now represented in Bengaluru center…and the future is about the ability to drive an elevated impact and revenue for the headquarters," said Zimmerman.
"Today, Target has over 5,000 people in India and the future is about learning and adapting to see the next 20 years, how to deliver work in a more connected way," said Zimmerman.
Investment bank Fidelity International has been able to create a "microcosm" of its headquarters in its Bengaluru GCC, the largest site outside the US, said Vijai Krishnan, Head of Fidelity Wealth and Brokerage, India and India Regional Chair, Fidelity Investments.
"India has a very rich startup ecosystem which is one of the biggest strengths in India. At Fidelity, we try to leverage this opportunity," Krishnan said.
For GCCs to move towards the next phase of growth, they will need to focus on greater business connects and customer centricity, said Pradeep Menon, MD, HSBC Technology India.
