Multinational firms plan slew of global capability centres this year
2 min read . Updated: 06 Apr 2022, 07:24 AM IST
PremiumMultinational companies are planning to expand their global capability centres (GCCs) in India this year as the model that gets remote teams to help fulfil business targets gains popularity following a spurt in demand and helpful incentives
BENGALURU : Multinational companies are planning to expand their global capability centres (GCCs) in India this year as the model that gets remote teams to help fulfil business targets gains popularity following a spurt in demand and helpful incentives.
GCCs, also known as global in-house centres or captives, are offshore units of large multinationals such as General Electric, Texas Instruments, Citigroup and American Express, performing technology operations. India is home to more than 1,200 GCCs employing close to 1 million people, according to Nasscom.
Consulting firm ANSR aims to set up more than 50 GCCs across the world in the next 12-18 months. Seventy per cent of them will be in India.
Several factors are driving the establishment of new GCCs in India. “Increased demand, availability of high-quality talent at scale in India, and maturity of the GCC model are leading to large-scale acceptability and adoption," said Lalit Ahuja, founder and chief executive of ANSR.
GCCs are also in demand as enterprises look to build strategic capabilities to advance their digital journeys, Ahuja said. “In addition, government incentives, regulations and policies supporting GCC setup in metro and non-metro cities, like the GIFT City in Gujarat for BFSI companies, are driving the growth."
American retail giant Lowe’s Companies Inc. plans to open its second GCC office in Bengaluru this month. Together with the existing office, the new facility in Bengaluru’s central business district will provide approximately 14,000 sq. ft of additional space to support Lowe’s growing workforce in India.
“This expansion of our India operations will enable our teams to continue to grow and provide unique capabilities across our engineering, analytics, artificial intelligence (AI), machine learning (ML), product management, merchandising, supply chain and other functions. The India team has been pivotal in building and rolling out key tech solutions and business capabilities that have driven Lowe’s growth and helping us provide excellent customer service," said Seemantini Godbole, Lowe’s executive vice-president and chief information officer.
Lowe’s Indian workforce has grown 60% amid the pandemic to over 3,600 across technology and business services roles. The company expects to continue to grow the Bengaluru workforce to support Lowe’s ongoing business transformation in the US and Canada.
Another firm drawing up expansion plans is Fiserv Global Services, the GCC of fintech major Fiserv, which helps provide fintech and payment tech solutions to its global clients through associates in India, Costa Rica and the US. It has operated in India since 2005, with delivery centres in Bengaluru, Chennai, Gurugram, Noida and Pune.
This year, Fiserv Global Services aims to build high-end engineering teams to lead product build-outs, develop product management discipline, and expand capabilities in global digital technologies such as analytics, AI, ML, robotic process automation, blockchain and cloud in India.
“India presents a unique and favourable ecosystem, with appropriate government regulations and policies, opportunities for partnerships with a vibrant ecosystem in academia and startups, and an abundance of digitally skilled talent. GCCs in India are evolving as digital transformation hubs, spearheading global innovation charters and delivering high-value work across emerging technologies and sectors," said Srini Krish, president, Global Services, Fiserv.
