GCCs Morphing Into Digital Twins of Their HQs
GCCs are increasingly mirroring their headquarters, focusing on both tech and non-tech capabilities, thus becoming key for companies looking to drive innovation, efficiency, and global competitiveness
A recent report reveals that Global Capability Centres (GCCs) in India are becoming strategic hubs for organisations seeking to harness the country’s abundant talent pool and favourable business environment. As the distance between GCCs and headquarters continues to diminish, these centres are becoming increasingly important for companies looking to drive innovation, efficiency, and global competitiveness, according to the business consulting company ANSR’s quarterly report on GCCs. In 2024, the world will see some of the biggest multinational enterprises across a diverse range of industries being led by global leaders from India. The report mentions that from Target in India, Falabella, Lowe’s, Maersk, Jaguar Land Rover among others – 2024will see as many as 60+ CIOs and SVP leaders that are based in India from various GCCs, spearheading their functions at a global level.
Five Trends
The ANSR report is optimistic that 2024 will be a year of infinite opportunity, where the distance between the GCC and the headquarters are becoming borderless. It underlines the following five trends that will define the GCC sector in the months to come:
- GCCs to evolve towards becoming ‘digital twins’ of their headquarters
- India GCCs to host as many as 60+ CIOs and global functional leaders
- GCCs to become the hotbeds for new and disruptive technology
- Rise of the Hybrid GCC-Service Provider Model and
- Increased collaboration with startups to power corporate innovation
GCCs Driving Innovation with Advanced Technologies
GCCs in India are strategically focusing on advancing both tech and non-tech capabilities to drive innovation and enhance organisational efficiency on a global scale. Over three-fourths of new GCCs are building innovative tech capabilities such as AI/ML, Data Analytics, RPA, and Cloud.
These advanced technologies are being leveraged to create cutting-edge solutions across various industries, with GenAI playing a significant role in reshaping customer experiences and unlocking new points of difference for retailers and consumer goods companies.
GenAI Adoption in Retail GCCs
GenAI adoption in retail GCCs is delivering significant business value, with applications ranging from AI-driven customer support and language translation to product design assistance, marketing campaigns, and inventory management.
For instance, a large Australian retailer’s India GCC successfully harnessed the power of GenAI to revolutionise its customer engagement strategy, leading to a 30% increase in the add-to-cart ratio.
Talent Management and Real Estate Trends
As GCCs mature and move up the value chain, they require a very differentiated talent strategy. Recruitment focuses on individuals with a diverse skill set, including a blend of technical expertise, business acumen, and strategic thinking.
Continuous upskilling and reskilling initiatives ensure alignment with evolving industry demands and foster a culture of innovation and agility within the organisation.
In terms of real estate trends, GCCs are increasingly adopting a “SuperApp” approach, which streamlines the setup process, offers pre-defined workflows, best practices, and automated functionalities, leading to increased efficiency, predictable outcomes, and scalability.
GCCs as Digital Twins of Headquarters
GCCs are set to become seamless extensions of their headquarters, mirroring operations and fostering real-time collaboration. By 2024, GCCs and headquarters will operate as a single entity, setting a new standard for global collaboration and operational cohesion.
Indian GCC Leaders Spearheading Global Functions
In 2024, as many as 60+ CIOs and SVP leaders based in India from various GCCs will spearhead their functions at a global level, leading teams responsible for managing global business services, shared services, and technology centres of excellence.
New GCC Setups and Centre Expansions
The report highlights several new GCC setups and centre expansions in India – with companies such as Corpay, MedExpert, Atmus Filtration Technology, Coherent Corp., Signature IP, and M31 Technology Corp. – setting up or expanding their operations in the country.
The GCC landscape in India is rapidly evolving, with these centres becoming strategic hubs for innovation, efficiency, and global competitiveness. The adoption of advanced technologies, particularly GenAI, is playing a significant role in reshaping customer experiences and driving business value across various industries. As GCCs continue to mature and move up the value chain, talent development and real estate trends will remain crucial factors in their success.
Acknowledgment: Quarterly research report on GCCs in India | ANSR
