How has India's role in Global Capability Centres (GCCs) evolved from back office operations to innovation leadership?
This question aims to explore the factors and strategies that have helped India move from being a support center to becoming a hub for advanced and innovative work in GCCs.
India’s journey in the Global Capability Centres (GCCs) space began as a destination for cost-effective back office operations. Over the years, India has transformed into a global hub for innovation, product development, and strategic business functions for multinational corporations.
- Initial Phase – Back Office Operations:
- In the early 1990s and 2000s, India attracted global companies due to its large English-speaking workforce and low costs.
- GCCs primarily handled IT support, data entry, finance, HR, and other routine processes.
- Shift to Knowledge-Based Work:
- With improvements in education and skill levels, Indian centres started managing analytics, research, and engineering services.
- Companies began shifting more complex tasks to India, including legal processing, financial analysis, and risk management.
- Drivers of Transformation:
- Talent Pool: India produces a large number of STEM graduates and has a strong base of skilled professionals.
- Government Policies: Initiatives like ‘Digital India’, ‘Startup India’, and relaxed FDI norms encouraged innovation and investment.
- Startup Ecosystem: Growth of Indian startups fostered a culture of innovation and risk-taking among professionals.
- Digital Infrastructure: Improved internet connectivity and adoption of new technologies enabled advanced work.
- Innovation Leadership:
- Many GCCs in India now lead global R&D, product design, artificial intelligence, and digital transformation initiatives.
- Indian centres have become strategic partners, co-creating products and solutions with headquarters.
- Global firms use their Indian GCCs for piloting new technologies and business models before global rollouts.
- Strategic Impact:
- India hosts over 1,500 GCCs, employing more than 1.5 million professionals (as of 2023).
- GCCs contribute significantly to India’s exports and knowledge economy.
- India is now seen as a centre for innovation, not just a support function.
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