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Evolving GCC Ecosystem In India | NASSCOM Insights

October 4, 2021

GCC

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India is near-synonym to GCCs and is continuing to lead as a preferred GCC destination globally, owing to a unique ecosystem (academia, start-ups, service providers, industry bodies and Government) it offers, abundance of talent, Tier-I & Tier-II city infrastructure, and government support. This report, in partnership with Zinnov, aims to highlight the facts, trends, and insights on India GCC landscape, digital transformation/innovation, ecosystem development, experimentation, and way forward for GCCs. The report also examines the evolution of the ecosystem, its growth drivers, and highlights the initiatives of GCCs, Industry bodies, and the Government.

Key Trends

India GCC potential

  • 1430+ GCCs in India in FY2021; ~140+ MNCs have set up GCC centers in India between 2019 and 2021
  • GCC revenues from India to reach $35.9 Bn by 2021; ER&D is leading the GCC growth story in India with a 55% market share ​
  • GCC headcount to reach 1.38 million in FY2021, out of which 42% is ER&D talent India to have 1900+ GCCs, employing ~2 million people generating revenues of $58-61 Bn by 2025

 

GCCs’ impact across the Indian ecosystem

  • India offers a clear value-proposition from niche skilled talent, innovation, Tier-I/ll cities infra, and unique ecosystem viewpoint
  • ~90% GCC headcount is based out of Tier-I cities, Tier-ll cities witnessed steady growth 54% GCCs have multifunction portfolios and focus on setting up Technical CoEs; GCCs urge to move to the subsequent level (from outposts & satellite centers to portfolio & transformation hubs) is observed
  • COVID-19 showcased the efficiency of GCC BCP operations and resiliency

 

Digital Innovation/Digitization

  • 500+ GCCs are investing in hyper-intelligent automation projects in India
  • GCCs are focusing on building niche skills (Data Analytics, AI/ML, Blockchain, Cloud) and tech CoEs to catalyze their innovation agenda
  • GCCs are favoring India’s digital talent availability, strong ER&D service provider community, mature start-ups, and peer-GCC ecosystem
  • GCCs have established 15+ incubators, 40+ accelerators, & multiple partner programs to drive collaboration with Indian startup

 

Key recommendations

  • Strategizing operating models to make them more resilient vis-à-vis embedding hybrid work model into it; strong regulations will govern global BCP
  • Robust collaboration with Government, Universities, high-tech start-ups, and service providers with a view on digitization
  • For India to attract more GCCs, it has to work on amplifying success stories to build brand India as an innovation hub, focus on skilling its talent base in digital tech areas, and also develop overall infrastructure to prepare for the future of work

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