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May 31, 2024

GCCs in India: The Nerve Centers of Global Business Success

Global Capability Centres (GCCs) in India are emerging as critical drivers of global business success, according to Debjani Ghosh, president of the National Association of Software and Service Companies (Nasscom). Speaking at the Nasscom GCC Conclave 2024 in Bengaluru, Ghosh emphasized the need for increased research and development (R&D) investments in India. “The innovation prowess of India needs to stand out,” she stated.

At the conclave, experts highlighted the significant role Indian GCCs can play in leading the generative artificial intelligence (GenAI) revolution. Gunjan Samtani, country head of Goldman Sachs Services India, remarked on the integration of global culture and business functions within their Indian GCC. “Now that we are here, it is a great opportunity for us to scale up in GenAI and capitalize on leadership,” he said.

Sunil Gopinath, CEO of Rakuten India, shared his excitement about the potential of large language models (LLMs). “AI today is becoming like what the internet used to be,” he observed, noting the transformative impact these technologies are expected to have.

Sandeep Dutta, India business lead at Accenture, highlighted the strategic importance of GCCs in leveraging advanced technologies. “Over the years, GCCs in India have demonstrated remarkable agility and resilience to become strategic innovation hubs,” Dutta said.

The growth of GCCs in India has been impressive. As of 2022-23, India had over 1,580 GCCs, with new ones being established every quarter. Factors contributing to this growth include a large pool of digitally skilled talent, a drive to adopt new technologies, and a focus on customer impact. This trend is expected to continue, with more global players across various sectors establishing deep capabilities in India.

However, the rapid expansion of GCCs also brings challenges. A Nasscom-KPMG report released at the conclave identified four key considerations for GCCs aiming to move up the value chain: talent management, strategic emerging technology adoption, navigating regulations, and de-layering concentration concerns.

Navigating regulations emerged as a crucial issue, with over 55% of leaders stressing its importance for smooth operations. The report pointed out that transfer pricing is a top regulatory concern, followed by Special Economic Zone/Software Technology Parks of India regulations and labor laws. To help GCCs address these challenges, the report introduced a self-assessment compliance maturity framework.

As GCCs evolve, proactive engagement with regulatory frameworks is essential for sustained success. “Over the past few years, we have witnessed remarkable growth of GCCs in India. These centers are constantly scanning the dynamic risk landscape and adapting to successfully navigate through,” said Srikanth Srinivasan, vice-president at Nasscom.

The conclave underscored that GCCs offer a clear path to scaling innovation and unlocking unprecedented business value. The ability to navigate regulatory complexities and manage talent effectively will be critical for GCCs to maintain their growth trajectory and reinforce India’s position as a global business hub.

In conclusion, the future of GCCs in India looks promising. With continued investments in R&D, strategic adoption of emerging technologies, and a focus on regulatory compliance, Indian GCCs are poised to become indispensable nerve centers for global business success.

Read more Business related news on R9 News
Jhumpa Lahiri

Jhumpa Lahiri

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