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    India

    Uploaded by

    chandrakala.k
    3 views2 pages

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    © All Rights Reserved
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    3 views2 pages

    India

    Uploaded by

    chandrakala.k

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    India's increasing appeal as a destination for global capability

    centres (GCCs) is drawing interest from both Fortune 500 giants and
    numerous smaller and mid-sized companies. These organisations
    are eager to establish operations in India to capitalise on the
    country's cost advantages, skilled workforce, and stable business
    climate, according to a report by The Economic Times.
    In the last eight months, several mid-sized GCCs with 1,000-2,000
    employees have started operations in India. This follows a trend
    initiated by larger corporations, some of which now employ between
    10,000 and 15,000 people in the country, handling a range of
    functions from customer support and data analysis to advanced
    research and development projects, the report added.

    Notable new entrants in this category include Flutter Entertainment,


    Hy-Vee Inc., ChampionX, Neighborly, Blackbox, Okta, and Indus
    Pharma.
    Office space demand

    In recent years, Indian GCCs have undergone significant


    transformation, evolving from conventional knowledge process
    outsourcing (KPO) and business process outsourcing (BPO) models
    to becoming sophisticated hubs of knowledge and innovation. This
    evolution underscores their pivotal role in increasing the demand for
    office space. Bengaluru and Hyderabad, as leading technology
    centres, have spearheaded this growth, contributing to 60 per cent
    of all GCC leasing activity in India since 2021, the report said.
    Data from Colliers reveals that technology-centric GCCs have been
    particularly prominent, representing 40 per cent of total GCC
    leasing, including major deals, and encompassing over 56 million sq
    ft of office space since 2021. Additionally, there has been a notable
    rise in interest from sectors such as banking, financial services,
    insurance (BFSI), engineering, and manufacturing.
    Evolution of GCCs in India
    Industry experts note that small and medium-sized businesses are
    increasingly adopting the proven GCC model to scale their
    operations, boost productivity, and remain competitive in terms of
    costs.
    The report quoted Gaurav Gupta, partner and GCC industry leader at
    Deloitte India, as saying that smaller GCCs, given their stage in the
    maturity curve, are often multifunctional from the outset. Unlike
    their predecessors who initially focused on transactional processes,
    these newer GCCs leverage lessons from established models and
    aim for higher value-added tasks from the beginning, he said, as
    mentioned in the report.
    In the late 1990s and early 2000s, the first wave of GCCs in India
    was primarily driven by major banks, semiconductor, and software
    firms, including General Electric, Intel, Amex, Motorola, Citibank, and
    Bank of America — many of which were part of the Fortune 200.
    The subsequent wave saw an influx of companies from the US and
    Europe across sectors like financial services, manufacturing, and
    telecom, mainly from the Global 500 category. Today,
    advancements in technology, data-driven customer insights,
    heightened competition in established sectors, and innovative
    leadership are attracting even smaller GCCs to India, the report said.

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