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India GCC Trends Quarterly Analysis Q4CY2022

February 27, 2023 2503 0 GCC

India GCC Trends Quarterly Analysis Q4CY2022

NASSCOM, in collaboration with Zinnov, has published ‘India GCC Trends Quarterly Analysis Q4CY2022’ which encompasses key insightful trends transforming the GCC landscape in India for the fourth and last quarter of 2022i.e.,October-December 2022. In addition to updates on the GCC India ecosystem; new GCCs in the ecosystem with a deep dive into their key focus areas, verticals they are operating in, headcount as well as headquarters; this edition also covers expansion of centers for established GCCs in India.Furthermore, this edition encapsulates granular insights on the GCC Landscape in the Telecom & Networking sector by delineating comprehensive case-studies from the key industry sub-verticals, namely Networking, Networking Equipment Manufacturers, Telecom Carriers, Telecom Equipment Manufacturers, and so on. Moreover, the ‘GCC Intensity Index’, a multifactor assessment framework created by NASSCOM and Zinnov since the first edition, used to track and measure the performance of new GCCs as well as the expansion of existing GCCs setting up base in India, continues to exhibit a rating of ‘High’ in the fourth quarter (October-December 2022)similar to Q3CY2022, due to certain distinctions relating to variety in industry verticals,presence across different tiers of Indian cities, etc.similar to the previous quarter.The Index captures various parameters such as GCC establishment/expansion, industry verticals, functions, tiers, headquarter locations, India presence in terms of number of locations, envisaged work profile, etc. and aims to establish a yardstick to measure the progress and potential of GCCs in India.

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Key Highlights

Key trends in Q4CY22

  • 11 new GCCs in Q4 2022 as compared to 15 in the previous quarter, all in Tier-I cities
  • ~73% of the new GCCs established in India operate in all three functional areas, namely ER&D, IT, and BPM in Q42022 as compared to ~60% in Q3 2022
  • In Q42022, nearly 45% of the new GCCs established in India hail from the Software and Internet vertical
  • In Q42022, US-headquartered MNCs constituted ~58% of new GCCs as well as new centers of existing GCCs expanding in India, in comparison to 76% in Q32022
  • Bengaluru continues to be among the top preferred locations for setting up base for new GCCs in India
  • Established GCCs expanded in~15 centers (13 in Tier-I and 2 in Tier-II cities) across India in Q4 2022in comparison to ~10 centers (7 in Tier-I and 3 in Tier-II cities) across India in Q3 2022; Bengaluru and Hyderabad with 4 centers each emerged as the  preferred choice for center expansion of existing GCCs in Q4 2022 
  • Key focus areas for new GCCs as well as the new centers of existing GCCsin Q4 2022 include Cloud, Artificial Intelligence (AI), Machine Learning (ML) and Software Development

GCC India Snapshot

  • GCC Market Size CAGR (FY15-FY21) – Continues to grow at a steady rate of ~11% 
  • New GCCs added in Q4 2022 (Oct-Dec’22) – 11
  • New GCCs in Q4 2022: 5 operate in the Software & Internet vertical while 2 operate in the Electrical & Electronics space
  • Expansion of existing GCCs in Q4 2022–9 new centers were setup in the Software &Internet vertical by companies like IBM, Marlabs, New Relic, Amadeus, etc.; Hyderabad and Pune were the preferred choices for expanding with 3 and 2 centers respectively in this segment. In the Automotive space,Magna, Stellantis and Pi Square Technologies set up a center each in Bengaluru
  • GCC Intensity Index for Q4 2022 (Oct-Dec’22) –High

Industry Landscape & Case Study: Telecom & Networking

  • ~56% of the total GCC units are instituted in Bengaluru and NCR
  • Nearly 22% of the Telecom & Networking GCCs have their centers in 3 or more cities
  • ER&D, IT, and BPM functions account for close to 56%, 30%, and 14% of the total installed talent in Telecom & Networking respectively
  • Close to 71% of the total installed talent for Telecom & Networking GCCs is housed in Bengaluru and NCR
  • Nearly three-quarters of the total Telecom & Networking GCCs in India are US- headquartered
  • Top companies(based on GCC Headcount in India) - Cisco, Verizon, Nokia, Ericsson, BT,etc.
  • New Telecom & Networking Entrants in Q4 2022 –BCD International and Cradlepoint

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