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Indian GCC industry evolution – from outposts & captives to transformation hubs
Indian GCC industry evolution – from outposts & captives to transformation hubs

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Over the years, GCCs in India have evolved from captives to now what is called as transformation hubs. GCCs have progressed to assuming a strategic role in fostering product innovation, driving technological advancements and spearheading digital transformation.

Evolution of GCCs

GCC 2

 

Till 2010, GCCs were primarily acting as captives and to their parent organisation. The primary reason for opening up a GCC in India was to take advantage of the cost arbitrage and talent at scale. There were approximately 700 GCCs during this time, with an installed talent of over 400,000 and they contributed about USD 11.5 bn as revenues.

From 2011 onwards, GCCs pivoted to become GICs or Global Inhouse Centres as they sought to deliver excellence and innovation. The GICs reached over 1000 in India during this time, with a talent base of approximately 750,000, generating over USD 19 bn as revenues.

The year 2015 witnessed a major shift as there was an almost hockey stick level of growth. The term GCCs, as we now know it, came into being. The focus has now expanded to include portfolio expansion, driving digital transformation, new global roles emerging out of India, robust peer-to-peer collaboration being explored, tier 2 and 3 cities also considered to open the GCCs, emergence of new talent paradigm and gradual transition to a Global Business Services (GBS) powerhouse. Currently, there are over 1580 GCCs, with an installed talent of 1.66 Mn, generating a revenue of over USD 46 bn.

Now, India is at the cusp of a major transformation, with the intention of GCCs becoming transformation hubs, driving end-to-end innovation across the value chain. They are venturing into new markets, focusing on managing value add, business critical operations, driving global functions to accelerate growth and transformation. They are also aligning their operations with the broader ESG goals and are promoting a culture of inclusivity, diversity, and equity. These multi-functional centres are building specific domain expertise and capabilities, thereby significantly contributing to the overall growth and success of the main organisation.

 

To gain more insights on the overall landscape of GCCs in India, download the report from the link–
 

https://nasscom.in/knowledge-center/publications/gcc-40-india-redefining-globalization-blueprint


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Vandhna Babu
Principal Analyst - Research

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