Bengaluru: India’s Global Capability Centers (GCCs) have been established as hubs of innovation and talent, going beyond administrative services. Tech industry leaders said this at the Bengaluru Tech Summit 2024. Companies that started operations in India solely to save costs are now planning their future here.
“GCCs are no longer limited to just backend functions,” said Miles, vice president and chief strategy officer at SAP. “They have been able to lead innovation.” Giving an example, he said SAP India, which started in Bengaluru in 1996 with just 100 employees, has now grown to 16,000 employees.
Innovation and development journey.
SAP decided to make its Indian development center part of the global innovation centers. Miles said: “We didn’t just make it an offshore centre, we made it one of our global development centres. Today, many solutions developed in India are being adopted globally.”
Similarly, Target India’s Andrea Zimmerman said all important departments such as merchandising, store design, finance and supply chain are present in the Bengaluru hub. “The work of our Indian center is creating great value and impact for operations in the United States,” he said. Our team, which has grown from 1,800 to 5,000 people, is proof of this.”
The future of GCCs by 2030
According to a report, India’s GCC could become a $100 billion industry by 2030 and employ 2.5 million professionals. Currently, there are more than 1,700 CCGs in the country, generating annual revenues of $64.6 billion and employing approximately 1.9 million people.
Vijay Kishan of Fidelity Investments said his company had also initially started working on cost savings in India, but plans are now being made for the future here. “We have created a micro-model company here that is creating future solutions in areas such as technology, data science and analytics,” he said.
Emphasis on AI and new technologies
HSBC Technology India CEO Pradeep Menon said GCCs must promote customer orientation and business engagement. He said: “What has brought us here cannot move us forward. Therefore, GCC countries must prepare for new technologies.”
Thousands of SAP also highlighted the need to increase investment in Artificial Intelligence (AI). He said China and the United States are leaders in AI patents, but India can also advance rapidly in this field.
India’s GCCs have now become major centers of global technological innovation. Experts believe that the emphasis on talent development and new technologies in this sector will strengthen the country globally.
