Article: India: A rising star in the global capability center landscape


India: A rising star in the global capability center landscape

Countries worldwide now rely on India's skilled professionals for crucial functions, solidifying its position as a central player in the global economic ecosystem.
India: A rising star in the global capability center landscape

Once viewed through outdated stereotypes, India has shed those limitations and emerged as a force to reckon with in the global tech landscape. Economic liberalisation at the back of favourable policies and focus on STEM fueled a talented workforce, transforming India into a global leader in tech expertise. It is no surprise that countries worldwide now rely on India's skilled professionals for critical functions, solidifying its position as a central player in the global economic ecosystem. Today, India pulsates with innovation, our diverse minds shaping the future of technology with resilience and agility, strategically positioning the country as a valuable "knowledge partner."

Leading the GCC revolution

A recent PwC report reveals close to 1,600 Global Capability Centers (GCCs) in India generating a staggering $46 billion in revenue between 2015-2023. India's journey within GCCs has been remarkably swift, evolving into central technology hubs. It has transitioned from basic tasks to managing complex technologies and processes across the value chain across diverse industries by adopting industry best practices like agile methodologies and continuous improvement initiatives. GCCs now focus on specialised skills like cloud computing, AI, ML, NLP, cybersecurity, and IoT; supporting their headquarters and global operations. GCCs are rapidly adopting automation and AI, particularly GenAI, as major focus areas.

This evolution and valuable insights fostering process excellence have cemented India's position as a global leader and a benchmark for others in service refinement and future advancements.

Also Read: GCCs fuel industry staffing surge in India

Government support propelling growth

There is no doubt that strategic interventions by the Government under various initiatives like 'Digital India’ and better policies have streamlined online approvals and licensing processes for GCCs, saving time and resources. Easing the process of doing business includes efforts like streamlined tax regulations and compliance procedures for foreign companies setting up GCCs, flexible labour laws, and single-window clearance systems for faster approvals and permits. 

The government's razor-sharp focus on developing India’s digital backbone and achieving developed nation status by 2047 propels initiatives like "BharatNet" and "Sagarmala" that address critical connectivity concerns. To this end, improved digital infrastructure (high-speed internet, data centres) has been a boon for GCC operations. Furthermore, initiatives like "Start-up India" support the continuous growth of GCCs, ensuring collaboration with startups and allowing GCCs to receive technology with due diligence, faster go-to-market, accelerated innovation, and tech-driven talent. 

Tech talent: Fuelling growth

India's GCC landscape is booming, with more centres emerging beyond Tier-1 cities. This has created employment opportunities for over 1.6 million individuals, with skills in AI/ML, data analytics, cybersecurity, and cloud computing. Hybrid working arrangements have expanded talent pools to Tier 3 and 4 cities, with over 200,000 now skilled in modern technologies. These GCCs are reshaping perceptions, adding value, and enhancing efficiency, cost reduction, and turnaround times for parent organisations.

According to EY data of June 2023, around 2400 GCCs will be operational in India by 2030, employing a staggering 4.5 million people by then and accounting for almost US$110b.

However, as the talent war heats up, employer branding and talent acquisition pose difficulties, as GCCs compete with established tech companies for top talent. Enhancing employer brands and positioning GCCs as vibrant technology hubs are crucial for overcoming this challenge.

Shaping the future

As established earlier, GCCs are set to witness stupendous growth. As India sets its sights on becoming a $5 trillion economy, the synergy between thriving Global Capability Centers (GCCs) and innovative hubs like NEC's GDC exemplifies the nation's growing prowess in global business and its ongoing technological transformation. This powerful combination will likely propel India to unprecedented heights in global business and technology.

However, to fully unlock this potential, seamless collaboration between the industry and government is crucial. Such collaboration will drive further innovation and economic growth, propelling India towards achieving the true vision of "Viksit Bharat" (Developed India) on the world stage.

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Topics: Technology, #ArtificialIntelligence, #BusinessTransformation

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