Global capability centres (GCCs) are increasingly looking to tap into revenue opportunities from the Indian market, which is already a critical talent hub.
While capturing the potential of the Indian market has been in the works over the past few years, it’s only of late that companies are gaining momentum.
India is home to more than 1,580 GCCs, with a total market size of $46 billion and growing at a compound annual growth rate (CAGR) of 11.4 per cent, according to a Nasscom-Zinnov report.
For US-based Planview, although India is currently a small market contributing less than 5 per cent of the total revenues, it is looking to expand its business.
Last year, Planview opened a global capability and innovation centre (GCIC) in Bengaluru and earmarked $125 million in investments for expansion in the region over the next four years.
“In terms of growth rate, India is already one of our fastest-growing markets.
"In addition to our GCIC, last year we launched our go-to-market team here to drive India-based revenue opportunities.
"We did very well in our first year and are looking to double that this year,” said Razat Gaurav, global chief executive officer (CEO), Planview.
“We have signed up about 15 large conglomerates and business houses across automotive, pharmaceutical (pharma), and banking, financial services and insurance already, and the progress has been fast in India.
"We want to double the size of business in India in the next year,” added Gaurav.
For Deutsche Bank, India is a growth market with immense investment opportunities.
“Our centres in India are so much more than talent hubs; they are an integral part of the bank, focused on delivering exceptional value for our clients.
"We want to leverage the vast potential of technologies to innovate and create services and solutions, deliver new data-driven business models, and new possibilities for the financial world,” said Dilipkumar Khandelwal, CEO, Deutsche India, and global head of technology centres.
Over the years, Deutsche India has grown markedly, with more than 18,000 employees across multiple functions.
“Our hiring continues to see a positive trend and is in line with our growth strategy,” added Khandelwal.
Waters Corporation, a US-based provider of analytical instruments and software, invested $16 million in establishing its GCC in Bengaluru last year.
For Waters, India is a key market that currently contributes 8-10 per cent to its global revenues.
“Our revenues had grown in double-digit CAGR for the past three to four years.
"We expect it to grow in the mid-teens,” said T Anil Kumar, general manager, Waters India.
“India is also attractive as it contributes 20-30 per cent of the global generics supply, and we play a major part in India’s pharma success story.
"Despite a soft global economy, India has been the strongest and fastest-growing market for Waters growing at over 13 per cent through the third quarter of 2023, higher than all other major geographies,” Kumar said.
Commenting on GCCs eyeing revenue opportunities, Gaurav Gupta, partner and GCC industry leader, Deloitte India, said, “As GCCs are building more innovation and leadership capabilities, we are seeing instances, especially in the services sector including technology products and services where GCCs are starting to cater to their global multinational clients or their GCCs in India as their requirements are growing.
"Some are also starting to look at large domestic clients.
"There are also a few examples of GCCs managing a part of the global technology products that were developed in the GCC in terms of sales and services for smaller markets globally.”
India’s GCC landscape
- India boasts 1,580 GCCs, with a market size worth $46 billion growing at 11.4% CAGR
- Planview signed 15 large clients last year and aims to double its India operations
- Waters India saw double-digit CAGR over 3-4 years and expects it to grow in the mid-teens
- Deutsche Bank views its India centres as more than talent hubs, integral to its operations
According to Vikram Ahuja, co-founder, ANSR, a GCC consulting firm, “While it’s not a primary growth driver, several GCCs in India are building a go-to-market in the country leveraging access to the existing talent pool who have strong knowledge of the local market dynamics.”
