Nexdigm, in association with USIBC (US-India Business Council) and ICICI Bank, Canada, hosted the first in a four-part webinar series "Global Capability Centers – India as the preferred destination." The first webinar focused on evidence-based data behind India being a leading destination for organizations of all sizes to establish a GCC. Global experts shared their insights and experience.
Peter Schumacher, Founder and Chief Executive Officer of Value Leadership Group, said, “If you’re looking at establishing something in Silicon Valley or Austin, Texas, as opposed to in Bangalore, you’re looking at potentially USD 75-100 million per year, over 10 years and that’s a billion dollars. You could do 90% of what you could do in Silicon Valley in Bangalore for probably a third to a fifth of the cost.”
Peter Bendor-Samuel, Founder and Chief Executive Officer of the Everest Group, spoke about why global businesses prefer setting up GCCs in India. He said, “… India has the deepest talent pool particularly when we are thinking about engineering, IT or data science-related (skills)… In this world of talent scarcity, particularly in North America, it is a very attractive location with well-developed infrastructure ranging from real-estate, tax, and even recruiting platforms. So, it’s a very easy place to establish a GCC.”
According to the data presented in the webinar, 80% of the GCCs navigated the COVID-19 pandemic without significant operational interruption. Due to rapid digital transformation and deployment of remote business tools, there was also minimal absenteeism at the pinnacle of the pandemic. The majority (67%) of GCCs leaders believe the remote working model is here to stay since there was a negligible loss in productivity. As a result, India leveraged its robust infrastructure and supportive government policies to be a leading location for new GCCs, accounting for more than 25% of new set-ups in 2020.
The Indian GCC market is estimated to be worth USD 36 billion in revenue this year and is expected to reach over USD 60 billion by 2025. Currently, over 1,430 centers are employing more than one million people in India. It is interesting to note is that 70% of India's GCCs belong to US-headquartered companies. India-based GCCs continue to have a digital focus and invest in Data Analytics, Cloud, Robotic Process Automation, Artificial Intelligence/Machine Learning, Blockchain, Internet of Things technologies and over 500 of these GCCs are investing in hyper-intelligent automation projects.