Home / News / India /  Slew of new-age GICs to be set up in 2021

A slew of new-age global in-house centres (GICs) are expected to be set up in India next year as global companies look to build futuristic technology capabilities—now easily done outside of the geographic boundaries of their head offices.

Global end-to-end GIC consulting firm ANSR is targeting to establish 20 GICs in India during 2021.

GICs, also known as global capability centres or captives, emerged in the early 1990s as offshore units of large multinationals such as General Electric, Texas Instruments, Citigroup and American Express, performing technology operations.

Many of the GICs that will be set up next year will be from emerging segments such as startups, airlines, hotels and aerospace.

“GICs are increasingly becoming industry agnostic as everyone needs technology," said Lalit Ahuja, founder and CEO, ANSR.

Late-stage startups in the e-commerce and software-as-a-service (SaaS) space will drive the growth of GICs next year in addition to the existing industries, said Ahuja. “Startups will account for 30% of the new GICs we plan to set up next year."

Most GICs in India are from the banking, financial services and insurance (BFSI) sector as it has been heavily impacted by digital transformation. Some of the top global banks have established GICs in India over the years and these have now become a core of their global technology innovation teams. JPMorgan Chase & Co. has one of the largest GICs in India with about 50,000 employees, followed by Goldman Sachs, Deutsche Bank and United Healthcare, among others.

The retail/consumer packaged goods (CPG) segment has the second-highest concentration of GICs with the likes of Amazon, PepsiCo, Walmart Labs and Tesco relying significantly on them.

According to a recent Nasscom-ANSR report, India is home to a quarter of all GICs of global retail/CPG companies with 25 centres likely to be established in 2021 alone.

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