The GIC story in India continues on its growth path – a segment that started out as an afterthought to facilitate lower cost has now emerged as an imperative. In the process, it has become a key segment of India’s IT-BPM industry in terms of revenue & employment generated and its value addition to the parent firm.
Given this segment’s growing significance, NASSCOM, jointly with Zinnov Consulting, conducted a detailed survey of GICs in India and have recently published a report titled “GICs in India: Getting Ready for the Digital Wave”.
In Part-I of this blog below, I am listing the key findings:
|Number of GICs|
|Revenue (USD billion)|
|Employees (’000 nos.)|
|Median size of GIC (no. of employees)|
GICs in India today number nearly 1,025 versus ~750 in FY2010. Revenue generated by GICs has gone up 1.7X to cross USD 19 billion (20 per cent share of IT-BPM exports) and this segment currently employees >25 per cent of the industry workforce (export employees).
- ER&D/SPD is the largest segment both in terms of number of GICs (59 per cent) and revenue share (52 per cent)
- While software/internet vertical ranks No. 1 in terms of number of GICs and employees, BFSI GICs have a 6 per cent share (number of GICs) but account for 24 per cent share of employees
- North America and Europe-headquartered GICs account for >90 per cent of GICs in India
- Tier II cities like Ahmedabad, Coimbatore, Vadodara, etc. emerging as GIC centres due to reasons such as proximity to manufacturing facility and access to niche or low cost talent
- For GICs in India, the growth journey has shifted gears to higher value add – increase scope of services, high complexity projects, IP creation, building competency & delivery efficiency – and thereby contributing to the top-line
- As a result of this expanding scope, GICs are evolving from single-function to multi-function centres, local to global governance, delivery focused to business result focus leading to an increasingly accountability driven model
- India is rapidly becoming the power-centre for MNCs – for many MNCs, the India centre is the largest GIC outside the HQ location
- Providing scale – Leading MNCs have >35% of technology workforce operating out of the India centre
- CoEs: Parent firms are looking to their India GICs as CoEs across markets, competencies and strategic factors; India is currently home to >100 CoEs across verticals
- Ecosystem partnerships: With academia through sponsored infrastructure (labs), training & curriculum design, sponsored/fundamental research, consulting, etc. GICs also looking to India’s startup landscape for new business opportunities, innovation, etc. – through Partnerships, Intrapreneurships/Accelerator programs, Funding programs, etc.
- Digitisation: India has emerged as the 2nd largest destination (after the US) to setup a centre for digital transformation
In the second part of this blog, I will highlight how GICs are enabling digital transformation for their parent firms.
You can purchase the report here: GICs in India: Getting Ready for the Digital Wave
Download the free Executive Summary