Is India’s GCC Paradigm Taking A New Direction?
Founder, Director of Avaali Solutions Pvt Ltd, Ms. Srividya Kannan’s article published in businessworld website.
As India’s GCC sapce undergoes a profound transformation, could this noted shift towards addressing local market needs while expanding global influence redefine the future of these centres and their role in the local and global economy?
A recent nasscom-Zinnov report put a number on the growing India-based Global Capability Centre (GCC) market, estimating it to reach up to USD 105 billion by 2030, with the current export revenue generated by these GCCs being pegged at about USD 64 billion. While innovations, traditionally, developed at GCCs primarily served global markets, the landscape is slowly shifting with these centres increasingly focusing on meeting the demands of the growing number of GCCs within India, driven by the immense potential for local market growth.
US-headquartered Planview’s CEO Razat Gaurav intends to tap into this opportunity and has aligned the company’s strategy to serve both the GCCs in India and the parent organisations they support globally.
“For us, GCCs will continue to be an important sector because we can help the entire organisations by engaging with the GCC, sitting out of India. We’re seeing a lot of global leaders, like the CIO of a global top 500 company, sitting out of Bangalore, which creates natural synergies for us. We are able to engage with global decision makers based here,” Gaurav explained.
Growth And New Paradigm
Captive GCCs have the potential to evolve into independent profit centres or legal entities, serving not only their parent organisations but also external clients. This model allows GCCs to operate with a revenue-focused approach. While this transformation is still in its early stages, the opportunity for GCCs based out of India to act as autonomous units offering services to various stakeholders is huge and could drive substantial innovation.
However, the widespread adoption of this model is still a few years away, as per Srividya Kannan, Founder and Director Avaali Solutions.
“The shift from traditional outsourced BPO models to integrated captive GCCs is still ongoing, and while collaboration between GCCs and their expansion to external clients holds promise, the process will take time. As GCCs continue to mature, their ability to operate as independent entities and explore new revenue streams will become more feasible and beneficial,” Kannan added.
The developments in the GCC space are happening fast and experts now stress that the evolution of GCCs in India extends far beyond mere headcount growth narrative.