 "Debjani Ghosh, President, Nasscom")
Global capability centres (GCCs) in India are becoming ‘nerve centres’ for global business success, said Debjani Ghosh, president of the National Association of Software and Service Companies (Nasscom).
“One of the biggest make-or-break factors for India today is to significantly increase research and development investments,” Ghosh said during her keynote address at the Nasscom GCC Conclave 2024 held in Bengaluru on Thursday. “The innovation prowess of India needs to stand out.”
Indian GCCs also have the potential to lead the generative artificial intelligence (GenAI) wave, experts agreed during a panel discussion at the event.
“At Goldman Sachs, it took us some time to build business context and each business function. It took time to integrate the global culture of our organisation in India. Now that we are here, it is a great opportunity for us to scale up in GenAI and capitalise on leadership,” said Gunjan Samtani, country head of Goldman Sachs Services India and global chief operating officer of Engineering at Goldman Sachs.
“We are just in the beginning phase of the GCC growth story. While a lot of focus today is on general-purpose large language models (LLMs), I am excited about the potential these LLMs will unlock. AI today is becoming like what the internet used to be,” agrees Sunil Gopinath, chief executive officer of Rakuten India, the GCC unit of Rakuten Group, Inc.
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For companies looking to succeed in the age of GenAI and advanced technologies, GCCs offer a clear path to scaling reinvention and unlocking unprecedented business value, said Sandeep Dutta, India business lead at Accenture. “Over the years, GCCs in India have demonstrated remarkable agility and resilience to become strategic innovation hubs.”
India had over 1,580 GCCs as of 2022-23, with multiple GCCs added every quarter. Several factors, such as access to a wide pool of digitally skilled talent, the drive to adopt new technologies, and the imperative to make a greater customer impact, are driving the growth of the GCC ecosystem in the country.
This growth trajectory over the next two to three years is expected to continue with the growing number of global players across sectors establishing deep capabilities in the country.
However, this rapid growth and scale of GCCs have also brought to the forefront some associated challenges and considerations that need to be addressed as organisations continue to evolve.
A Nasscom-KPMG report launched on Thursday has identified four considerations for GCCs as they move up the value chain. These include talent management, strategic emerging technology adoption, navigating regulations, and de-layering concentration concerns.
The report further underscores how navigating regulations is a key concern for GCCs, with over 55 per cent of leaders emphasising its importance for smooth operations. It identifies transfer pricing as the top regulatory consideration, followed by Special Economic Zone/Software Technology Parks of India regulations and labour laws.
To address these considerations, the report introduces a self-assessment compliance maturity framework to help GCCs evaluate their current standing and ensure adherence to regulations.
As GCCs continue to evolve and adapt, proactive engagement with regulatory frameworks will be paramount in ensuring sustained success and contributing to India’s position as a global business hub, Ghosh said.
“Over the past few years, we have witnessed remarkable growth of GCCs in India, with several factors driving its growth. As GCCs continue their growth trajectory, moving up the maturity curve, with factors such as blurring geographic borders and technology disruptions, these centres are constantly scanning the dynamic risk landscape and adapting to successfully navigate through,” said Srikanth Srinivasan, vice-president at Nasscom.
