The Rise of Global Capability Centers (GCCs) in India: Catalysts of Innovation, Economic Growth and Technological Integration
During a discussion with Charulatha, Correspondent at Siliconindia Magazine, Mohua shares her perspective on the ways in which GCCs (Global Capability Centers) in India are making their presence felt by driving business outcomes across various functions. She also delves into why India is the favored choice for organizations to establish their GCCs and this dynamic market has leveraged best tech brains for solving global problems without impacting offerings.
The GCC journey reflects a transformation from cost-centric to skill-centric, underscoring its enduring significance and growth potential. India remains to be a favored market as it offers cost-competitiveness in addition to IT skills and the ability to innovate at scale
The Integral Role of GCC Ecosystem in India's Banking Sector Advancement
GCCs (Global Capability Centers) in the Indian banking sphere mainly pertain to multinational banks, though some local banks also have similar operational arms. Despite differences, they converge in skill requirements, especially in operations, technology and contact centre skills, both in front and back offices. These GCCs bolster the Indian banking landscape by importing credibility and fresh skill sets and vice versa. The Indian banks known to be more advanced digitally, share learnings with the MNC banks via the GCCs. As banks in India and across the globe innovate and transform, these changes permeate to the other side via shared talent. In essence, GCCs enrich the sector by facilitating cross-learning and fostering mutual growth in an era of evolving banking paradigms.
Empowering Business Outcomes: from the lens of GCC
The inception of GCCs (Global Capability Centers) was centered on transaction processing, fueled by cost arbitrage. These centers extended their scope to include technology work due to India's technological revolution. Initially, the industry encompassed transaction processing and technology, evolving into GCC 2.0. India's progress in tech skills, particularly in digital transformation, attracted global players. Industry reports project exponential growth for GCCs, projecting a $110 billion business by 2030. While cost arbitrage once defined GCCs, the industry now thrives on skill-based offerings, ensuring its longevity. Regulatory recognition and the pandemic-induced digital push have furthered GCC growth. India, set to be the fastest-growing nation in 2023 according to the IMF, retains its appeal for outsourcing amid impending economic challenges. As global businesses navigate layoffs, GCCs are poised to absorb roles, solidifying their contribution to India's economy. The GCC journey reflects a transformation from cost-centric to skill-centric, underscoring its enduring significance and growth potential. Over the years, Indian GCC sector has indeed become a ‘Volume + Value’ creator through initiatives, such as demonstrating resilience,sharing success stories of global players, and creating awareness about the government incentives and ecosystem.
Fostering Technological Innovation: GCCs as Catalysts of Integration and Innovation Hub Reputation
The evolving landscape of GCCs (Global Capability Centers) in the financial sector transcends their conventional role as mere innovation hubs. They have evolved into integral components of organizations, encompassing diverse groups like credit analysis, risk management, and more. Mashreq Global Network supports Mashreq bank across all areas and groups with technology, agility and innovation at the core. This expansion signifies a shift beyond technological innovation, although innovation remains embedded in their functions. With a skilled Indian workforce driving digital transformation and pioneering products, GCCs stand as dynamic contributors to multifaceted progress. This progression challenges the sole label of "technological innovation hub," embracing a broader and more impactful identity.
"The evolving landscape of GCCs (Global Capability Centers) in the financial sector transcends their conventional role as mere innovation hubs"
Technology impacted the GCC ecosystem in the recent years
The role of GCCs in India has evolved over the years and has encompassed diverse functions spanning risk management, credit analysis, and more... GCCs are now multifaceted engines driving technological innovation and operational excellence, transcending their initial roles. This transformation embodies the essence of the Mashreq Global Network spirit – a fusion of innovation and comprehensive contribution, defining the present and future of our organization. India has undoubtedly become the world's GCC capital because it offers the special benefit of homogeneous skilled talent across locations, allowing GCCs to expand operations for risk reduction and business continuity.
Banking on India: India is at the cusp of change. With digital transformation being core to all companies coupled with growing talent and our vibrant market environment, we have been at the forefront of the industry's transformation. Given these developments, it is safe to say that GCCs will continue to exist, and will continue to expand at lightspeed!