GCC 4.0 | INDIA REDEFINING THE GLOBALIZATION BLUEPRINT

Overview

Nasscom, in collaboration with Zinnov is excited to announce the latest edition of our biennial report on the GCC India Landscape titled ‘GCC 4.0 | India Redefining the Globalization Blueprint’. This report is a comprehensive publication examining key trends, insights, drivers and evolution of India's GCC landscape including distribution of GCCs across various tiers and cities in India. Further, the compendious report encompasses key themes pertaining to cutting-edge engineering competence stemming from India; digital transformation, innovation and experimentation; the progression of GCCs from the Shared Services Model to mature Global Business Services (GBS) Construct; leveraging India’s next-gen talent to catapult advancement of GCCs; edifying the intrapreneurs leading GCCs so as to elevate them to home-grown global leaders; mastering networked globalization; sustainability, diversity, equity & inclusion as well as the development of a vibrant ecosystem (startups, academia, service providers, etc.) becoming key cornerstones for the growth and success of GCCs in India. These factors are not only shaping/transforming the contours of the current GCC Landscape in India but are also acting as a lighthouse for the way forward for GCCs.

The report also entails the projected outlook for GCCs in times to come as they transition into the 4^th Wave of evolution wherein they are focusing on revenue generation, building niche competencies, customer-centric business development, peer collaboration, cultivating global leadership, navigating the Generative AI paradigm, policy formulation with the government and charting the course in untapped frontiers as they are increasingly becoming key hubspots for ‘as-a-service’ transformation. The blueprint of GCC 4.0 is being rewritten with India at the fulcrum of this paradigm shift as GCCs in India are increasingly concentrating on decentralization and diversification of portfolios, becoming innovation hubs, assuming a strategic role in fostering product innovation, driving technological advancements, and spearheading digital transformation initiatives for their parent organizations.

Available in Soft Copy Only

Key Findings

India GCC Potential

1580+ GCCs with 2740+ GCC units stationed in India in FY2023; ~60% growth in no. of GCCs since 2015
~65% of the GCCs established in India are headquartered in the Americas, predominantly the USA
1.66 Mn+ total installed GCC talent by FY2023; 71k installed talent from Tier-II and Tier-III cities
$46.0 Bn total GCC market size by FY2023 growing at a CAGR of ~11.4% (FY2015-23); ER&D leading the GCC growth with ~56% GCC revenue share
Bengaluru is the most preferred destination for setting up GCCs in India, followed by NCR, Hyderabad, and Pune
GCCs are increasingly maturing as they enter Wave 4.0 2023 onwards, leveraging scale, innovation, delivery excellence and leadership which lies at the core of Indian GCCs’ progression

Key growth pillars for GCCs in India (1/2)

India's Engineering Prowess – India is home to 1440+ ER&D GCC centers and ~695k GCC ER&D Talent in FY2023, ascending to product ownership and leadership as 42% GCCs matured to the Portfolio Hub stage in FY2022, as compared to 18% in FY2013
GBS Powerhouse - 960+ GCCs with Functional Shared Service Model; Bengaluru leading with 39% of the total GBS talent
Winning the Digital Age - GCCs anticipated to invest USD 450 Mn by 2024 in driving Intelligent Automation; Generative AI expected to be a key disruptor
Sandbox for Global Leadership - ~5K+ Global Roles in India (2022) predicted to touch ~20,000 (2030), growing at a CAGR of 19% (FY2022-FY2030); 18% women leaders (2022) projected to grow to 30% (2030)

Key growth pillars for GCCs in India (2/2)

Masters of Networked Globalization - GCCs are leveraging decentralization to Tier-II and Tier-III locations, to achieve cost reductions of 25%-30%; Hub and Spoke Model becoming prominent
India's New Talent Code - Integrating a multi-generational workforce by focusing on varied motivators for Gen Z, Millennials and Baby Boomers such as work-life balance, compensation & company culture; Gig economy model becoming part of operational strategy
India's Journey to Sustainable Value – Interlacing sustainability with key business practices by developing sustainable products, adopting circular economy principles, and reducing carbon emissions, driving innovation, and focusing on customer experience

Key Enablers driving GCC 4.0 Growth