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GCCs in India Looking to Strengthen Digital Capabilities: Report

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As much as 80% of global capability centres (GCC) in India are directing their focus towards digital capabilities such as artificial intelligence, machine learning and data analytics, according to the findings of a survey.



As much as 80% of global capability centres (GCC) in India are directing their focus towards digital capabilities such as artificial intelligence, machine learning and data analytics, according to the findings of a survey.

 

“Interestingly, this surpasses the emphasis placed on the most prominent traditional tech capabilities of application development and maintenance, which stands at 78%,” said GCC solutions consulting firm ANSR, which conducted the study.


About 74% of the chief information officers (CIO) ranked AI as a top three priority in fiscal year 2024, ANSR’s said in its quarterly GCC report. The top five emerging and future-oriented skills in demand at GCCs are in generative AI, AI/ML, data analytics, cybersecurity, cloud computing and robotics process automation.


India commands over 50% of the global market for GCCs, or the back offices of multinationals, with an estimated 5,000 global leadership roles situated in Indian GCCs. The GCC sector, currently valued at $46 billion, is projected to grow to $110 billion by 2030, the report said.


GCCs are evolving towards becoming the ‘digital twins’ of their headquarters, it said. About 40% of corporate headcount operates from GCCs and Indian GCCs are expected to host over 60 CIOs and senior vice presidents by the end of 2024.


As businesses aim to leverage India's skilled workforce and favourable economic conditions, this growth trajectory is expected to employ over 4.5 million professionals across 2,400 GCCs, the report said.


“Given its unique mix of abundant tech talent, robust startup ecosystem, and continuous government support, India remains the most-preferred destination of choice to set up a GCC,” ANSR said.


According to the report, Bengaluru and Hyderabad have solidified their positions as major GCC hubs, with over 30% and 19% GCC presence, respectively. This is followed by Delhi (15%), Mumbai (12%), Pune (10%) and Chennai (9%). Apart from these six tier-1 hubs, GCCs are present in over 15 locations.


Notably, Gujarat International Finance Tec-City (GIFT City) is emerging as an attractive destination, the report found. This is owing to the regulatory environment at the special economic zone, which offers benefits such as competitive taxes, streamlined business processes, relatively lower operational costs and top-notch infrastructure.


The sector is also experiencing significant diversification in demand and capability functions. For instance, beyond corporates, sectors like healthcare (21%), hi-tech (21%), BFSI (14%), manufacturing (14%), and retail (7%) are driving demand.


GCCs are emerging as an attractive option for talent migration amid global economic challenges resulting in reduced salary increments, a funding winter for startups, cost control measures, and layoffs in the product and services sector, ANSR said.

 

"We are witnessing a transformative shift in the global GCC landscape, with a strong focus on digital capabilities such as AI/ML, analytics, cybersecurity, cloud, etc., driving unprecedented growth," said Vikram Ahuja, cofounder of ANSR and CEO of talent solutions platform Talent500.

 

On the real estate front, GCC hubs Bengaluru, Hyderabad, Delhi, Mumbai and Pune are projected to lease 60–62 million square feet of office space by 2025.

 


https://economictimes.indiatimes.com/epaper/delhicapital/2024/apr/13/companies-pursuit-of-profit/gccs-in-india-looking-to-strengthen-digital-capabilities-report/articleshow/109256815.cms

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