GCCs in India to Lead Innovation and Shape Global Business Trends: Report The country currently has over 1,700 GCC enterprises employing over 2 million professionals and is at a pivotal point in their development in transforming into strategic hubs, according to a report titled 'Pioneering Innovation In Global Capability Centers' by Avasant.
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India's global capability centers (GCCs) are at the forefront of innovation, employing over 2 million professionals and transforming into strategic hubs that shape global business trends, said Akshay Khanna, Managing Partner at Avasant, a global management consultancy firm.
The country currently has over 1,700 GCC enterprises employing over 2 million professionals and is at a pivotal point in their development in transforming into strategic hubs, according to a report titled 'Pioneering Innovation In Global Capability Centers' by Avasant.
GCCs have now become 'essential extensions' of their headquarters and are leading important initiatives, driving innovation while building strong partnerships around its ecosystem in academia, startups, IT providers, and government authorities.
While the growth of GCCs in the global arena has been remarkable, Indian counterparts grew with an average of 60 new centers being established each year as per the report. GCCs have also evolved from being operational support to strategic hubs driving innovation, further outlining their significance in the global landscape. The report also stated, that despite fast expansion, only 33 per cent of the Fortune 500 companies currently operate a GCC in India.
The data indicates significant penetration potential in landscapes like India, as more enterprises understand the positives of setting up GCCs in India, which includes factors like access to a skilled workforce and competitive costs. The report said that GCC's contribution to the country's information technology and business process transformation workforce has also been steadily increasing.
According to the report, notable trends include smaller GCCs increasingly focusing on functions that drive innovations. The smaller size means the agility has allowed them to adapt quicker to implement new technologies making them ideal places for innovation. The focus on innovation has proved to be crucial for parent enterprises in driving transformation and gaining competitive advantage.
Jayant Tulsiani, Branch Head, India, Allianz Technology said that their GCCs in Thiruvananthapuram and Pune have been pivotal to the success of this operating entity.
"These centers serve as key hubs for technology and operations, supporting a wide range of functions including IT services, application development, maintenance and management, infrastructure information security services, domain delivery architecture, robotics process automation, blockchain, artificial intelligence, business intelligence, big data, DevOps, and cloud," said Tulsiani.
The report also outlined the rising importance of GCCs in the strategy and operations of parent enterprises with the steady increase in workforce has proved the significance.
Currently, about 5 per cent of GCCs in India have a headcount exceeding 5,000 employees. The median headcount for GCC is approximately 400, indicating many GCCs are currently operating on a smaller scale with Fortune 500 GCCs clocking a median headcount of 1,550.
"As essential extensions of their headquarters, GCCs drive organizational initiatives, foster innovation, and build robust partnerships with tech innovators, startups, tech providers, academia, and the government authorities," said Khanna.
