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US-headquartered MNCs are foraying into India to establish their India centres/Global Capability Centres (GCCs) with 70 per cent of GCCs that established India presence in Q1 2022 being from the US, according to a report by Nasscom and Zinnov.
Nasscom and Zinnov have launched the inaugural edition of ‘India GCC Trends Quarterly Analysis Q1CY22’ - which encapsulates GCC activity in India, along with case studies and other insights for the first quarter of 2022 i.e., January-March 2022.
GCC market size
As per the report, The India GCC market size in FY2021 stood at $35.9 billion. The market is growing at a CAGR (FY15-FY20) of 11.7 per cent. The total installed GCC talent in India stood at over 1.38 million in FY2021.
Nasscom and Zinnov, in the study have also formulated a quarterly ‘GCC Intensity Index’ is a multivariate assessment model intending to track and measure the activity of GCCs in India on a quarterly basis.
The index is intended to measure the performance of new GCCs, encompassing various parameters such as GCC establishment/expansion, industry verticals, functions, tiers, headquarter locations, India presence in terms of number of locations and envisioned work profile.
There has been a rise in the number of new GCCs entailing a rating of ‘Very High’ on the Nasscom-Zinnov ‘GCC Intensity Index.’ Overall, 20 new GCCs were added this quarter, of which 19 were in Tier-I cities and one was located in Tier- II.
Top destinations
Bengaluru and Hyderabad emerged top choices with ~65 per cent of GCCs opening their first India center in these cities, followed by Mumbai and Pune.
The key focus areas for new GCCs include conversational AI, Cybersecurity, Machine Learning, Natural Language Processing and Blockchain.
More than 50 per cent of the GCCs instituted were from software and Internet verticals, followed by BFSI and Automotive.
Retail GCC sector
The report highlighted key trends in the retail GCC sector. As per the study, GCCs in the vertical are venturing into digital technologies like AI and ML in view of consumer satisfaction.
According to the data, Bengaluru and NCR combined account for ~90 per cent of installed R&D talent pool in the sector. ER&D & IT functions constitute almost 22 per cent and 51 per cent of the total installed talent, respectively
“Need of AI and Data analytics for structuring loyalty programme, pricing, marketing analysis, and space planning in this vertical has led to a rapid increase in the focus on R&D talent,” it said.
The new entrants in the vertical in the last two years include H&M, 7 – Eleven, etc.
Industrial GCC sector
As per the report, for Industrial GCCs, IoT is a key focus area and is being incepted through technology labs and ecosystem engagements.
Further, about 1/6th of the GCCs in this vertical have more than one center for ER&D operations implying GCCs see India rich in quality talent pool with required skillset, it said.
Bengaluru and NCR combined account for over 50 per cent of total installed talent pool. ER&D & IT functions constitute almost 58 per cent and 9 per cent of the total installed talent, respectively
Aliaxis, ePropelled, etc. are the new entrants in the vertical in the last two years.
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