There has been a ‘steady rise’ in the number of new global capability centres (GCCs) in Q2CY2022 India, with the country seeing 19 new GCCs being set up between April-June 2022, according to a new report by IT industry body NASSCOM. The report added that 17 are from the tier I cities and two from tier II cities. In the first quarter of 2022, 20 new GCCs were added to the list.
The report done in collaboration with tech consultancy firm Zinnov, titled ‘India GCC Trends Quarterly Analysis Q2CY2022’ also said that 74% of the new GCCs established in India offering services in all three functional areas of engineering, research & development (ER&D), information technology (IT), and business process management (BPM).
GCCs are captive centres that handle operations (back-office functions, support functions, and contact centres) and IT support to enhance productivity. Some large companies use GCCs as a centre of excellence as well.
India has around 1,430 GCCs with a market size is $35.9 billion, employing more than 1.38 million people as of FY2021.
The report shows that in Q2, US-headquartered multi-national companies (MNCs) constituted 63% of new GCCs as well as new centres of existing GCCs expanded in India. Nearly three-quarters of the new GCCs established in India are from the software and internet, retail, and BFSI verticals, said the report.
Cities like Bengaluru and Hyderabad continue to be preferred locations for setting up base for new GCCs with eight and five GCCs added in Q2 2022, followed by NCR , Mumbai, Chennai, Pune, Ahmedabad and Thiruvananthapuram, having one new centre each, the report said.
GCCs are leveraging start-ups to solve business challenges to deliver revenue growth, cost savings, and/or improve customer experience emerging from being a back-office destination to a global hub for innovation, it added. In fact, the key focus areas for new GCCs as well as the new centres of existing GCCs in Q2CY2022 include artificial intelligence (AI), natural language processing (NLP), data science, Web 3.0, and robotics.
The growth of GCCs in the BFSI sector has been phenomenal, noted the report, which stated that Bengaluru, Mumbai and NCR have a combined share of 60% of all BFSI GCCs in India. Further, 15% of BFSI GCCs have entered in the India in the last three years, of which 55% of the total BFSI GCCs in India are headquartered in the U.S, said the report.