GCCs based in India can provide cost savings up to
45% over 3 to 5 years, as per Nexdigm
45% over 3 to 5 years, as per Nexdigm
- ~50% of all Global
Capability Centers (GCCs) are located in India
- ~70% of India’s GCCs belong to US-headquartered companies
- 180+ innovation
centers
in India belong to Fortune 500 companies
- India-based GCCs
continue to have a digital focus, and over 75% are investing in analytics, cloud technology, and robotic process
automation
- The southern and western
parts of India have been the primary locations for most GCC establishments
- Software plus
Banking, Financial Services, and Insurance verticals account for almost
30% of the total installed talent base
With an
increasing focus on digital, over 75% of India-based Global Capability
Centers (GCCs) are investing across analytics, cloud migration, and robotic
process automation, and over 50% in artificial intelligence, machine learning,
and Internet of Things (IoT) as
discussed during Nexdigm’s webinar on ‘India
– A Favorable Destination for Global Capability Centers’. Nexdigm is a
global business advisory organization serving clients from more than 50
countries leveraging its multifunctional, professional capabilities to help
organizations set up Global Capability Centers (GCCs), manage and optimize
existing GCCs, or provide outsourced services for their clients.
The webinar highlighted that 70% of India GCCs belong to
US-headquartered companies, followed by 20% from Europe and 10% from the
Asia-Pacific region. The session aimed to showcase the
potential of GCCs in India and highlight how multinationals can
leverage India’s sizable knowledge-driven workforce to their advantage. This
can be in terms of business continuity, expanding their talent pool,
strengthening their operations, and globalizing their back-offices.
The Indian GCC market size is
approximately USD 28.3 billion (as of 2019), with over 1,750 centers and over
one million employees. India’s skilled talent pool across sectors is set to
increase to over 600 million by 2025. At present, ~50% of all GCCs are
located in India, and over 180 of these are not just capability centers but
also innovation centers that belong to Fortune 500 companies. As per Nexdigm, with
GCCs, there could be savings of up to
45% over an average time of three to five years.
within the IT sector, and nearly 1/4th
of them work in GCCs. With more than 1,300 GCCs currently operating in India,
we are seeing businesses expanding in diverse sectors, such as automobiles,
semiconductors, aerospace, industrial automation, engineering, energy, and
healthcare. With the vast talent pool, upgraded infrastructure, and right
government policies, we have shown the world that India is a great marketplace
to invest for GCCs.”
“Technological transformation will play
a huge role in making us the e-commerce technology development capital of the
world. Today, 80% of companies, either B2B or B2C, are doing business digitally
in India. We are setting up ‘Startup SETU’ to enable Indian and global startups
to engage, create, and build a better ecosystem in the country. We have also
opened 20 centers of excellence across Tier II and Tier III cities to boost
local talent,” he added further.
Factors such as a large
educated talent pool, young demographics, infrastructure requirements across
metro and smaller cities along with well established intra-country
connectivity, and appropriate policy support have enabled
India to maintain its leadership position in GCCs. India’s cost to value
proposition is approximately 3 to 4 times lower than the US. As discussed in
depth during the webinar, there has also been ~250% increase in GCCs in
India in the last 10 years. India has also been attracting global unicorns,
eight of which have already set up operations in India.
“Indo-US enjoys a comprehensive strategic
partnership that cements cross-sectoral links between them. With current trade of
~USD 142 million, the countries have complementary strengths and capabilities
that can make the combined vision and ambition of USD 500 billion trade a
reality. The liberalized atmosphere and large talent pool are attracting a lot
of global companies, resulting in them moving their manufacturing units to
India. I believe Indo-US trade will play an important role in boosting growth
for industries in India,” said Dr. T. V. Nagendra Prasad, Consul
General of India, San Francisco, at the Nexdigm webinar.
The webinar also
highlighted that 43% of GCCs are singularly focused while 57% offer
integrated services with a combination of IT, Business Processes, Engineering,
and R&D from one cohesive center. A majority of GCCs in India are from
sectors such as Software and IT, BFSI, Pharmaceuticals, Telecom, Electricals
& Electronics, and Manufacturing. An interesting fact is that the Software
plus Banking, Financial Services, and Insurance verticals account for almost
30% of the total installed talent base.
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