In a remarkable transformation from their early days as ‘captives’ of global headquarters in the 1990s, Indian Global Capability Centres (GCCs) have evolved into critical digital twins of their parent organizations. This transition has made them pivotal in driving technological innovation and strategic growth for companies worldwide.
According to Srikanth Srinivasan, Vice President of the National Association of Software and Service Companies (Nasscom), the shift to remote work post-pandemic has rendered geographical distance irrelevant. As a result, Indian GCCs have become as integral to their parent corporations as any other office globally. Companies such as Planview and Target exemplify this evolution, with Planview’s Indian centre being described as ‘digital next generation.’ Meanwhile, Target’s operations in Bengaluru function as a fully integrated GCC and strategic partner, often referred to as their second headquarters.
Indian GCCs are not merely support centres but have matured into intelligent business solutions models that align with global objectives, thereby contributing to sustainable competitive advantages. Tesco and Optum India are prime examples, demonstrating the ability of these centres to drive core business strategies and innovation.
The technological prowess of Indian GCCs is particularly evident in areas such as artificial intelligence (AI), machine learning, and blockchain. Target’s Global Capability Innovation (CGI) capabilities, which were first developed in India, have set a precedent for global expansion. Similarly, Sabre’s significant AI-related initiatives showcase the integration of AI into their product suite, leveraging talent cultivated in their Indian GCC.
A Nasscom-KPMG report highlights a significant surge in the establishment of GCCs in India, with 60% focusing on sectors like engineering, research and development (R&D), IT services, and business process management (BPM). This growth is driven by the demand for niche skills in AI and cloud computing.
Indian GCCs have positioned themselves at the forefront of technological innovation, playing a crucial role in the global operations of their parent organizations. As these centres continue to evolve, they are expected to further enhance their contributions to AI initiatives and other technological advancements, solidifying India’s status as a global hub for innovation and strategic business solutions.
