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How are the GCCs driving digital transformation in India
How are the GCCs driving digital transformation in India

June 10, 2021

GCC

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The automotive industry has undergone a drastic transformation in the last few years. No longer are vehicles just modes of transport. Trends such as increased connectivity, autonomous driving, IoT, wireless features, driver assistance systems, coupled with evolving consumer expectations, changing competitive landscape, newer tech advancements and shifting regulatory and political landscape are driving investments into digitization in the automotive industry. It has become imperative for automotive companies to rethink their business strategies and invest in a “Smart, Connected” future.

This has impacted the entire automotive value chain as well. Global Capability Centres (GCCs) in India are playing a much more inclusive role in facilitating and driving the digital transformation of their global organizations. These GCCs are no longer cost centres delivering low-value business processes, rather have emerged as “innovation centres”.

Some of the main reasons for the evolution of Indian GCCs include –

  1. Growing importance of India market in the global scenario
  2. India’s strong ER&D domain expertise
  3. Existence of strong innovation and partner ecosystem
  4. Cost effectiveness
  5. Increasing focus on innovation
  6. Availability of talent
Reasons for evolution of GCCs in India

 

There are many prominent GCCs present in India, which have grown over the years and steered the global organisations towards digital transformations. Some of them include Mercedes Benz Research and Development India (MBRDI), Robert Bosch Engineering and Business Solutions, India (RBEI), Faurecia India, Continental Technical Center India (TCI), and ZF India Technology Center (ITC), to name a few.

There are many reasons for Indian GCCs to deliver this transformational value to their global organisations. Some of them are enumerated below –

  1. Becoming a global hub for ‘Digital’ talent and delivery – Due to the availability of talent and skills at optimal cost, Indian GCCs are positioning themselves as global hubs for digital talent and offer expertise to the global organizations.
  1. Core capabilities in consultative solutions – Working closely and collaboratively with parent organisations, Indian GCCs work to address customer needs and address business opportunities.
  1. Acting as innovation accelerators – GCCs are emerging as centres to enhance global engineering output by setting up design hubs and innovation centres.
  1. Driving product transformation of global organizations – With direct access to all stakeholders and having a deep understanding of the customers’ needs, GCCs are able to drive the digital transformation of the products of the overall organization and build a suitable product portfolio well suited to the needs of the consumers and at par with the competition as well.
  1. GCCs are the microcosm of the global organization and hence help in enabling cross business units’ collaboration and facilitate multi-domain R&D as well.
  1. Creating customized products and solutions – GCCs drive product design and are customizing it to the India market. With India being an important geography for the organizations, GCCs are taking end-to-end responsibility of creating these tailor-made solutions and products.
  1. Driving engineering excellence – GCCs are adapting and gaining expertise in safety and performance standards, while also setting up agile engineering excellence centres.
  1. Seeding global leadership from India – Many GCCs have critical leadership roles with complete technological, business and legal accountability based out of India.
  1. Enabling a strong partnership – Due to many advantages that India has, including easy access to service providers, solution providers, start-ups etc, GCCs are actively exploiting these relationships and strengthening the digital transformation efforts of the global organization.

GCCs have played a pivotal role in solving product, engineering, technical and digital challenges and accelerating digital transformation of the parent organizations. Global companies are reliant on Indian GCCs more than ever to create an ideal launch pad for new initiatives around connectivity, fuel efficiency, clean mobility, and digital mobility services. With continuing support from academia and the government, it is only a matter of time before global organizations set up their innovation centres, which are central to the growth of their overall businesses.

To read more about how the automotive industry is undergoing its digital transformation and the role of GCCs thereof, download our report “Digital Transformation in AUTOMOTIVE and the role of GCCs” from the links below.

NASSCOM website - https://nasscom.in/knowledge-center/publications/digital-transformation-automotive-and-role-gccs

NASSCOM Community - https://community.nasscom.in/communities/digital-transformation/digital-transformation-in-automotive-and-the-role-of-gccs.html

More on digital transformation in automotive industry in the coming days. 


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Vandhna Babu
Principal Analyst - Research

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