IMPACT OF EMERGING GLOBAL CAPABILITY CENTERS (GCC) IN INDIA

 Eventhough global capability centers (GCC)were originally established in 2000 it emerged as a significant global player recently especially since  the covid19 period and afterwards. GCC was specifically established as a world wide organization to utilise global talents,resources and expertise.Initially the  Group was formed in 2000 in Houston Texas as a whole for sale of  broad band training company. By 2006 the company expanded into services, from broad brand delivering to network operations management and consultancy services, creating and building  network operations management and consultancy services across countries. Another aspect is that capability centers of large companies which were evolved by third party Information technology and business processes management companies  are born again currently with great vigour and enthusiasm. Currently GCCs  are harbingers of full blown innovations in fields like software, Artificial Intelligence (AI)cloud computing, data analytics, cyber security and different business process management (BPM).GCCs  are offshore units established by  multinational companies to perform range of strategic functions with specialized talents  of cost arbitrage and operational efficiencies in various locations across the globe. Some of the basic functions of GCC are spearheading innovation, providing services, conducting research and development,developing new products and services, managing IT infrastructure, software development cyber security and other technology related functions. With regard to knowledge transfer and collaboration within the organization GCCs helps to ensure best practices, insights and innovations across different business units. By tapping regions with less input costs GCCs do  economise infrastructure and operations costs Similarly   by offering competitive rewards GCCs can minimize the risks of migration and ensure business continuity. 

The GCCs started in India are largely  cost saving type. They are hubs of innovation and collaboration between parent company and its offshore subsidiary which mainly  focus  on value  addition activities like Intellectual Property (IP) creation, expertise on emerging technologies, Digitalisation and establishing centers of excellence.In India Initially MNCs focused on establishing GCCs in cities like Bengaluru, Pune,and Hyderabad given their advantage in infrastructure and access to pools of talent. Gradually with the availability of infrastructure, real estate at lower costs  and also  supply of talents, the two tier cities of India like Ahmedabad, Jaipur, Mysore Vadodara,Kochi and Coimbatore emerged as important centers for establishing GCCs. By 2030 India's 70 cities are expected to host GCCs. Moreover Country's growing start ups ecosystem further creates collaborative ventures between startup and GCCs. As per Goldman Sachs estimates revenues from GCCs in India have surged nearly four fold at a compound rate of over 11% over the past 13 years reaching $46 billion in financial year 2023.During the same period the number of GCCs also more than doubled from 700 to 1580 with an employee base of 1.7 million. As per another projection  the country is expected to host over 1900 GCCs by 2025.

According to NAASCOM and KPMG India report  entitled "GCCs in India "more than 72% of leaders at GCC consider talent management continues to be the crucial and strategic priority as GCCs develops further reflecting the growing need to harness high value digital skills effectively. With cutting edge technologies such as data analytics, generative AI and cloud computing GCCs are also adopting a holistic approach to ensure consistent supply of skilled professionals prepared for both current and future business requirements that includes forms of forecasting and establishing a robot talent pipeline. GCC s in the country are also effectively participating in the global value chain resulting in increased demand for advanced digital skills in the fields of automation, architecture, cloud computing, AI/ Machine learning and data science. Obviously GCCs must navigate the complexities of the modern business landscape by applying new technologies and enhancing their operational models. Accordingly GCCs can boost the local economy through skll development and the benefits extending beyond infrastructure development. GCCs provide employment opportunities for skilled youth especially women. The Global Skill Gap study by National Skill Development Corporation  (NSDC) showed increasing demand for Indian talent across diverse sectors worldwide including opportunities for women. Studies show that nearly 5 lakh women are enrolled for work in GCCs constituting 28% of the total 16 lakh employees across GCCs in India. In short emergence of GCCs in India further extending to smaller cities with sufficient tech and skill back up will continue to generate more employment opportunities .However the issues of rural unemployment and livelihood issues will remain with only litlle impact by operation of GCCs. Obviously rural areas require local resource based approach with appropriate skilling, upskiling and application of optimum technologies for employment generation and  better living conditions.