While GCCs (Global Capability Centers) have grown significantly in India over the last few years, there is still more room for growth. According to a new report by Nasscom-Deloitte titled ‘GCC value proposition for India’, the GCC sector in the country can potentially scale up to US$60–85 billion across three growth scenarios in the next 5-6 years. This will have a proportionate impact on the country across economic, human capital, ecosystem, social, and reputational factors.
India still remains the top destination with over 1300 GCCs directly employing 1.3 million people and generating approximately USD 33.8 billion in revenue as of FY-2020 (and contributes total gross output of approximately USD 100 Bn annually to Indian economy), according to the report.
While the parent organizations benefit by tapping into highly skilled Indian talent through their GCCs, too also benefits by creating more jobs, spreading prosperity, accelerating innovation, and embracing global leading management practices, the report said.
Hence, GCCs play an important ‘bridge’ role in further strengthening the link between India and the world (and, in turn, bringing the world to India and enabling the world to leverage India’s capabilities in its evolution).
However, the report observes that there is an opportunity for global organizations with GCCs to further expand their portfolio bringing more and high value work, new organizations to setup GCCs and leverage high quality Indian talent. Finally, there is also an opportunity for mid-size global organizations to benefit from setting up smaller, high-impact GCCs in India.
According to the report authors, by creating a ‘win-win’ value creation model, GCCs are able to facilitate better utilization of resources (especially the precious human resources) and improve overall systemic efficiency, effectiveness and sustainability.
“The role of GCCs in helping global organizations successfully manage the massive disruptions during the first wave of COVID pandemic is especially praiseworthy, said the research authors. As major economies in the world grappled with the first wave of pandemic, GCCs in India were able to quickly transform into ‘work-from-anywhere’ model thus enhancing overall organizational resilience and immunity,” the report observes.
Apart from that, these GCCs are also enabling enhancement of overall skill levels of their employees in India by actively investing in continuous learning programs. Already many GCCs are collaborating with Indian universities to create more specialized and focused training programs for higher skilled jobs.
Many GCCs are actively contributing to the communities they live in and run specific programs in areas such as women and child education, digital empowerment, healthcare, sanitation, nature conservation and restoration and agriculture. These initiatives help in strengthening communities and in promoting well-being and better quality of life in these communities.
According to the report GCCs are partnering with start-ups in India to drive frontline innovation. This ‘win-win’ relationship helps global organizations to get access to best entrepreneurial talent in India and also helps the start-ups to accelerate their product development timelines and go global through the GCC network in India.
The government of India too has played an important role in helping GCCs succeed and thrive over the last few years, which has helped India in building its capabilities and increasing its attractiveness as preferred destination for global organizations to setup their GCCs.
A continued focus on developing India’s talent pool for example resonates very well with government’s existing initiatives such as Skill India. It may facilitate growth of this sector by creating additional jobs.
The report concludes that as the world seeks to find its ‘new normal’ post the COVID pandemic, GCCs will play an important role in the next-generation ‘global service delivery model’ of their organizations. By further enhancing the growth prospects of GCCs, India has a chance to further become a global talent hub and showcase the best of India to the world.