India’s IT sector is setting up specialized divisions to support the establishment and operation of Global Capability Centres (GCCs) for multinational corporations.
This initiative reflects the industry’s proactive approach to maintaining its competitive edge and diversifying revenue streams.
Global Capability Centres, also known as GCCs, are locally registered entities that provide services to their global parent organizations.
Initially established as cost centres, GCCs have evolved into hubs of innovation and value creation, handling high-value tasks such as research and development, data analytics, and artificial intelligence.
Key Players in the IT Sector and Initiatives
Prominent IT companies such as Accenture, Cognizant, Infosys, Wipro, Capgemini, Tech Mahindra, and Persistent Systems are at the forefront of this trend.
These firms are creating dedicated business units with specialized leadership and teams to cater exclusively to GCCs. For instance:
- Accenture has formed a focused team to drive its GCC strategy, complemented by its strategic partnership with ANSR, a firm specializing in setting up GCCs.
- Infosys has established a GCC Centre of Excellence in Bengaluru, led by Padma Kumar, to enhance its capabilities in this domain.
- Cognizant has appointed Surya Gummadi to spearhead its GCC offerings, supported by a dedicated team.
Market Dynamics, Opportunities, Challenges and Strategic Importance
The rise of GCCs is driven by MNCs’ increasing preference for insourcing technology services to leverage local talent and infrastructure.
According to industry estimates, the revenue generated by IT and business process service providers from GCCs and related support stands at approximately $20 billion, with Indian GCCs contributing a significant share.
This trend has gained momentum as IT firms diversify their portfolios amid weakening demand from traditional markets in the US and Europe.
While the establishment of GCC-focused units presents significant opportunities, it also poses challenges such as the need for specialized expertise and the risk of cannibalizing traditional outsourcing revenue.
However, industry leaders view GCCs as a critical revenue driver and a means to strengthen their position in the global IT ecosystem.
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