India 14th September 2024: ANSR, the market leader in developing strategic Global Capability Centers (GCCs), today released the GCC Quarterly Landscape Report (Q2, 2024), providing key insights into the evolving landscape of GCCs in India, with a particular emphasis on the fast-growing retail/CPG sector. The report presents an in-depth overview of the major trends and innovations shaping the country’s GCCs and underscores the ongoing momentum in new setups, expansions, and the expanding role of GCCs across various industries and functions.
The report reveals that over 50% of retail/CPG GCCs in India have been established in the last eight years, a testament to the success of existing centres, mature operating models, and accelerated speed-to-value. The report projects that India will see the establishment of more than 25 additional retail/CPG GCCs in the next 2-3 years, with Bengaluru continuing to be the preferred destination, hosting over 42% of these centres.
Further insights delve into critical areas such as real estate, talent management, and technology adoption, highlighting India’s ongoing emergence as a global hub for business operations. Cities like Hyderabad, Bengaluru, and Pune are at the forefront of this growth, with GCCs leveraging advanced technologies—including Generative AI, AI/ML, and data analytics—to drive innovation and power their global operations.
Vikram Ahuja, Managing Director of ANSR, emphasized the importance of this report in guiding the industry through its next phase of growth: “The Q2 2024 GCC report highlights the most important trends and behaviours driving the growth of Global Capability Centers. As GCCs increasingly drive growth and innovation, this report will enable organizations to strategically align with emerging trends and disruptions in the sector.”
Key Highlights from the Report:
Talent Management Trends
GCCs continue to hire aggressively, with a notable 50% of them preferring to source talent from existing GCCs in India. Meanwhile, product companies and service providers constitute around 30% and 20% of total hiring.
Compensation trends show that GCCs offer 30-40% higher salaries compared to IT/ITeS sectors. The average attrition rate in GCCs is significantly lower (9.1%) than the industry average.
Women now make up over 35% of the workforce in Indian GCCs, with tech roles expected to see an increase from 25% to 35% by 2027.
Advancements in Technology and Innovation
Over 78% of new GCCs established during the study period prioritize building capabilities in AI, machine learning, and data analytics. This trend is also seen in existing centers expanding their operations.
GCCs are also leading the way in adopting advanced digital capabilities like cloud, cybersecurity, and robotics process automation (RPA), positioning India as a key player in global technology innovation.
Real Estate and Workspace Trends
GCCs accounted for over 35% of India’s office leasing in Q1 2024, with a strong preference for green-certified, Grade A office spaces. Bengaluru and Hyderabad led in terms of leasing volume, with a combined share of 86%.
93% of GCCs have adopted a hybrid work model, balancing in-office and remote work, emphasizing the need for flexible yet collaborative workspaces.
GCC 8.0 and ‘Both-Sourcing’ Approach
GCC 8.0 marks a new phase characterized by a blend of insourcing and outsourcing, known as ‘both sourcing.’ This approach allows GCCs to access specialized skills on-demand while maintaining control over core functions, driving innovation, efficiency, and strategic alignment with enterprise goals.
GCC Leader Spotlight
The ANSR Quarterly GCC Report introduces the ‘GCC Leader in Spotlight’ segment, beginning with Ankur Mittal, Senior VP of Technology at Lowe’s India. This segment will highlight top industry leaders, offering real-world insights into the strategies and innovations that fuel their success. Through candid interviews and practical advice, it will provide emerging GCCs with guidance on overcoming growth challenges, fostering innovation, and achieving sustainable success.