As a result of its capacity to navigate the complexity of the modern business environment, India’s Global Capability Centers (GCCs) ecosystem has become a major engine of innovation and growth.
At its annual GCC Conclave held in Bengaluru, Nasscom and KPMG India collaborated to release the key findings of their study titled, “GCCs in India: Building resilience for sustainable growth.”
The purpose of the release was to help the GCCs better understand some of the most important factors to take into account as they define their future roadmap. The conclusions drawn from a quick survey and interviews with top executives of GCC companies in India, spanning a range of sizes, scopes, and industrial sectors, were carried out by Nasscom and KPMG in India.
India has more than 1580 GCCs as of FY2023, and more GCCs are added every quarter. The need to embrace new technologies, have access to a large pool of workers with digital skills, and increase consumer impact are just a few of the causes propelling the expansion of the GCC ecosystem in the nation.
Over the next two to three years, it is anticipated that this development trajectory will continue as an increasing number of global businesses from many industries acquire deep capabilities and construct technology centers and transformation hubs.
Nonetheless, the fast expansion and magnitude of GCCs has also highlighted some related difficulties and factors that must be taken into account as establishments keep changing.
As GCCs go up the value chain, the study outlines four factors they should take into account. These include managing personnel, adopting emerging technologies strategically, negotiating rules, and allaying worries about concentration, affirmed its official release.
Navigating the multifaceted & evolving talent landscape
Roles are growing and changing as GCCs in India change and advance up the value chain. High-value digital skills are in greater demand in fields like data science, cloud development, AI/ML, automation architecture, etc.
In the face of a highly competitive talent market, the GCCs in India are facing several significant challenges, including the availability, attraction, and retention of niche talent; creating a pipeline of readily deployable talent with newly emerging skills; locating and nurturing talent qualified for global leadership positions; and cost arbitrage.
In order to meet short-, medium-, and long-term objectives, GCCs are utilizing creative workforce strategy models including hire-build-scale, borrow-augment, and co-create.
These companies are adopting a complete strategy that guarantees a constant flow of qualified workers prepared to address present and future business requirements, emphasizing the development of a strong talent pipeline in addition to talent demand forecasting. Additionally, these GCCs are taking action to foster leadership that is prepared for the future, fostering strong functional competencies and assuming responsibility for global duties.
Futureproofing GCCs in the age of emerging technologies
With the help of the quick uptake of emerging technologies, GCCs are changing from traditional hubs concentrated on transaction fulfillment and cost reduction to strategic transformation hubs concentrated on value generation and innovation. Additionally, these centers are refining the governance and adoption processes for global organizations and creating skills in GenAI.
GCCs must use a four-tiered transformational ecosystem to help them accept and apply emerging technology as they strategically Rethink, Redefine, and Reimagine their strategy. Redefining and finding ways to lessen the impact of futuristic tech implementations on customer experience while ensuring value delivery, as well as reimagining value proposition by creating a workforce that is innovative and forward-thinking, are some of the key strategies. Adjusting the current talent pool with a skill-driven continuous learning path to build and prepare for the change.
The report goes on to show how crucial it is for GCC CEOs to navigate laws, with more than half of them seeing this as a need for efficient operations. Transfer pricing is listed as the most important regulatory factor, followed by labor rules and SEZ/STPI restrictions. In order to help GCCs examine their existing situation and guarantee regulatory conformity, the paper presents a self-assessment compliance maturity framework.
Proactive engagement with regulatory frameworks will be crucial to ensuring continuous success and bolstering India’s standing as a global business center as GCCs continue to change and adapt.
The paper also stated the opinion that it is critical to address issues related to focus. Concentration concerns are more complex than a straightforward headcount analysis. GCCs may effectively detect significant exposures, evaluate possible vulnerabilities in-depth, take proactive steps to allay worries, and furnish global organizations with complete reports by implementing a range of criteria.
Key Comments
Commenting on the report, Mr. Srikanth Srinivasan, Vice President at nasscom said, “Over the last few years, we have witnessed a remarkable growth of GCCs in India with several factors are driving its growth. As GCCs continue their growth trajectory, moving up the maturity curve, with factors such as blurring geographic borders, and technology disruptions, these centres are constantly scanning the dynamic risk landscape and adapting to successfully navigate through.”
Sharing her insights on the report, Mrs. Shalini Pillay, India Leader – Global Capability Centre, KPMG in India, said: “India as a nation, is gearing up to attract many more global players to establish and scale their GCCs over the next 3-5 years. As these GCCs continue to build, innovate and scale, adopting new operating models influenced by the emerging technologies, they are also equipping themselves to navigate through a dynamic risk landscape and hence further fortifying the resilience of this model.”
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