India's GCC Reboot: Mid-Market Ambition Meets Deep Tech
In this episode, Zinnov's Managing Partner, Karthik Padmanabhan breaks down how India's GCCs are evolving from delivery arms to deep tech and transformation engines. We explore the rise of mid-market GCCs, the fading role of generalists, and why private equity is watching closely. From AI R&D to ecosystem-driven innovation, this is a story of reinvention—with lessons for leaders eyeing India not just for scale, but for strategy.
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Time of India
an hour ago
- Time of India
Why India is emerging as the ideal hub for GBS and GCCs
India has firmly established itself as the global epicentre for Global Business Services ( GBS ) and Global Capability Centers (GCCs). What began two decades ago as cost-saving offshore centers has evolved into strategic innovation hubs driving digital transformation and operational excellence for multinational corporations. This paradigm shift in how companies perceive globalization, talent acquisition, and technological innovation through GCCs is reshaping the global business landscape. The Strategic Evolution: From Cost Centers to Innovation Powerhouses The perception of GCCs as merely low-cost service hubs is now obsolete. India's GCC landscape has transformed dramatically from centralized service delivery models focused primarily on cost reduction to strategic centers of excellence with specialized capabilities . Today, over 1,600 GCCs operate in India, employing more than 1.5 million professionals , with projections suggesting growth to 2,400 centers by 2030, potentially elevating the market value to $110 billion. This evolution reflects a fundamental shift in corporate strategy. GCCs have progressed beyond transactional services to become strategic enablers that drive organizational growth through emerging technologies. They now function as innovation engines, propelling parent companies into new frontiers of operational efficiency and market leadership. GBS and GCC models transform traditional shared service centres into centres of excellence, driving efficiency and innovation. GBS centralises and standardises processes, uniting business units under one framework to maximise economies of scale. By combining in-house teams with third-party providers, it improves efficiency, governance, and compliance. GCCs, meanwhile, are specialised centres that insource critical business functions and focus on innovation. Unlike GBS's broad service delivery, GCCs excel in AI, automation, cybersecurity, cloud computing, and digital transformation. India's Unparalleled Advantages for GCC Establishment India's greatest advantage lies in its vast pool of skilled professionals who combine technical expertise with deep functional knowledge. India boasts one of the world's largest and most skilled workforces, with over 5.8 million IT professionals contributing to the industry as of 2025. Annually, the country produces over 1.5 million engineers, including 120,000 IT graduates, meeting the growing demand for expertise in emerging fields such as AI, machine learning, and cloud computing. India's IT sector is likely to reach a milestone of USD 300 bn in revenue in 2026 (Nasscom Annual Strategic Review 2025), showcasing its role as a global tech powerhouse. While cost was the initial driver for establishing GCCs in India, the value proposition has evolved significantly. India offers an ideal combination for enterprises concerned with balancing operational efficiency and cost. GCCs in India deliver not just cost savings but also quality excellence as a result of our deep functional understanding, solidifying India's appeal to businesses looking for scale and agility. GCCs in India have the potential to not only deliver cost savings but also innovation in service delivery. Their ability to operationalize Enterprise Resource Hubs (ERHs) and deploy autonomous operational models in record time will ensure further reduction in setup and operational costs, solidifying India's appeal to businesses looking for scale and agility. India's strategic geographical positioning and cultural compatibility, particularly with Western and Middle Eastern markets, make it an ideal partner for organizations looking to leverage GBS for their operational needs. The proximity to major Asian and Middle Eastern markets, alongside a shared cultural ethos with many global corporations, facilitates smoother integration and collaboration. AI-Driven Indian GCCs India's GCCs are at the forefront of AI adoption and digital transformation. The integration of AI, machine learning, and hyperautomation is redefining operational management at a global scale. Advanced analytics, process automation, and predictive intelligence have significantly progressed due to the incorporation of AI in GCCs. AI implementation in GCCs enables real-time decision-making capabilities through high-level analytics for extensive data processing, particularly useful in finance, supply chain management, and customer service optimization. GBS-enabled back-office processes have been automated through Intelligent Process Automation (IPA). This has increased the de-skilling of human effort, leading to fewer mistakes and significantly higher productive outputs. Autonomous Systems Transforming Business Operations As GCCs evolve, there will be increasing demand for autonomous systems and platforms capable of automating and managing expense-line business operations. These systems are transforming critical functions across the enterprise. Autonomous procurement systems are revolutionizing the procure-to-pay cycle by automating supplier on boarding and verification processes, implementing AI-driven contract management and compliance monitoring, enabling predictive analytics for spend optimization and supplier risk assessment, and facilitating seamless collaboration between buyers and suppliers through digital platforms. In the finance domain, autonomous systems are delivering significant improvements by reducing process cycle times by 40-70% across various functions, with specific improvements including 55% touchless invoice posting for AP processes, 40% cycle time reduction for reconciliation processes, 50% for AR processes, and over 70% for Master Data processes. They're also accelerating cash application and reconciliation processes, enhancing financial forecasting accuracy with AI-powered predictive models, and streamlining record-to-report cycles with automated data validation and reporting. The HR function is being transformed through AI-driven recruitment and talent acquisition platforms, automated employee onboarding and documentation processes, intelligent performance management systems, and personalized learning and development programs powered by AI. Meanwhile, autonomous systems are enhancing compliance functions by monitoring regulatory changes and automatically updating compliance frameworks, identifying and flagging potential compliance issues through pattern recognition, streamlining reporting and documentation requirements, and reducing compliance-related risks through proactive monitoring and alerts. Enterprise Resilience Hubs: The Next Evolution The concept of Enterprise Resilience Hubs (ERHs) represents the next evolution of GCCs, focusing on building resilience and agility into business operations. ERHs leverage advanced technologies to enhance operational continuity and drive long-term business performance. Unlike traditional GBS or GCC models that rely heavily on human-driven processes, ERHs leverage largely autonomous shared services across processes in functions such as Procure-to-Pay (P2P), Order-to-Cash (O2C), Record-to-Report (R2R), and compliance. Advanced automation eliminates repetitive tasks, enabling organizations to streamline operations while reducing dependency on extensive staffing or physical infrastructure. ERHs use AI to go beyond task execution, providing predictive insights, real-time analytics, and intelligent process optimization for mission-critical functions. These capabilities empower organizations to respond proactively to disruptions, making data-backed decisions that reinforce operational resilience and business continuity. By embedding advanced data analytics into core processes, ERHs enable enterprises to identify emerging trends, monitor risks, and uncover innovation opportunities. Decision-makers gain a holistic view of operational data, driving strategic adjustments that align with dynamic market conditions. India's Growing ERHs Landscape: Expanding Horizons Enterprise Resilience Hubs are emerging as India's answer to growing sustainability challenges amid GCC expansion. As operations extend beyond metropolitan centers, infrastructure constraints and resource scarcity—particularly water—have become pressing concerns. ERHs address these challenges by integrating sustainability directly into their frameworks through AI-driven processes that significantly reduce resource consumption while maintaining operational resilience. The shift to tier-2 and tier-3 cities creates a dual benefit: alleviating urban infrastructure pressure while bringing economic opportunities to developing regions. Government incentives and improving digital infrastructure make cities like Jaipur, Kochi, and Indore increasingly viable for ERH operations. By embedding ESG considerations into their operational DNA, these hubs demonstrate how business growth and environmental stewardship can successfully coexist, offering a blueprint for responsible expansion across urban and semi-urban India. Summary India's position as the premier hub for GBS and GCCs is built on its exceptional talent pool, cost advantages, and technological capabilities. The emergence of Enterprise Resilience Hubs is crucial as they address pressing challenges of resource scarcity—particularly water—and infrastructure constraints while enabling responsible growth in both urban and developing regions. For global enterprises, India now offers both traditional GCC benefits and the opportunity to establish ERHs that combine operational excellence with environmental stewardship. As businesses face mounting sustainability pressures, ERHs provide the strategic framework to balance innovation, resource efficiency, and long-term resilience in an increasingly competitive global environment.
Mint
5 hours ago
- Mint
Edtechs Simplilearn, UpGrad and Emeritus bank on B2B revenue as AI and GCC demand rises
As the edtech sector grapples with waning interest in its core, consumer-focused online learning courses post-pandemic, major edtech and upskilling companies like Simplilearn, upGrad, and Emeritus are strategically shifting gears towards enabling enterprise learning. Even as companies say that the conventional consumer model is still very much in vogue, they are working towards building their B2B (business to business) businesses, backed by corporations racing to upskill employees for the artificial intelligence (AI) age, and by the expansion of global capacity centres (GCCs) in India. The goals are lofty. Mumbai-based upGrad, a traditionally consumer-facing business, expects 30-35% of its business coming from B2B in the next few years, from 20% currently. Simplilearn, which has offices in the US, Singapore and Bengaluru, and offers courses ranging from AI to digital marketing, gets 30% of its revenue from its enterprise segment, and expects a 50:50 split in two to three years. And Bengaluru-based Scaler, which focuses on software development and data science courses and introduced a B2B vertical this year, expects it to contribute 10-20% of revenues in the first fiscal year (FY26). The details Let's start with Scaler. The startup, traditionally a direct-to-consumer player, is focusing its B2B business towards companies with a headcount of 2,000-20,000 employees and those that have set up a GCC in India. 'Most large enterprises outsource their software needs, and it lands in an Indian GCC," said Abhimanyu Saxena, co-founder of Scaler, identifying the training of GCC staff as a key revenue stream. 'In the first year, revenue from enterprise will be sizeable," Saxena said, adding that the company has already signed deals with a few Fortune 500 companies, but declined to share the names. Scaler closed FY24 with ₹384.5 crore in operating revenue, up from ₹316.6 crore in FY23, according to documents sourced from business insights provider Tofler. Scaler also slashed its losses in FY24 to ₹138.8 crore, down from ₹330.2 crore in FY23. Also Read | Staffing firms find it more profitable putting employees in GCCs than IT firms 'If edtechs are able to win contracts from GCCs, which have the potential to give big-ticket deals, they can end up becoming really profitable for companies," said Amit Nawka, technology deals partner at PwC India. Meanwhile, upGrad has been slowly building its muscle for enterprise-facing solutions through mergers and acquisitions over the past three years. While the edtech acquired Work Better and Centum Learning in 2022 to build its B2B segment, it was only in April 2024 that the company brought its B2B offerings under one banner, upGrad Enterprise, the company said. Srikanth Iyengar, chief executive officer of upGrad Enterprise, said B2B will help the company accelerate its growth in international markets through partnerships with global organisations. 'While consumer programmes typically allow individuals to learn at their own pace, enterprise learning is built on speed and precision–where organizations need their talent to acquire and apply skills to drive performance." upGrad clocked ₹1,875 crore in non-Indian Accounting Standards gross revenue in FY24, up ₹1,530 crore in the previous financial year, according to data shared by the company with Mint. It trimmed Ebitda (earnings before interest, tax, depreciation and amortization) losses to ₹79 crore,down from ₹500 crore in the previous fiscal. Some of upGrad's B2B vertical clients are Reliance Retail, Hexaware Technologies, HCL Technologies and Walmart Global Tech India, according to the company. Pivotal role As for Simplilearn, company founder Krishna Kumar told Mint In an interview last year that the company would focus on reskilling for professionals and its B2B segment. 'We should reach a 50-50 split between our consumer and enterprise business in the next two to three years," Kumar said. According to data from the company's FY24 revenue announcement release, Simplilearn clocked ₹773 crore in revenue and trimmed Ebitda losses by 75% to ₹51 crore. Most of Simplilearn's enterprise business comes from four segments: IT and ITES, GCCs, public sector undertakings (PSUs) and government institutions, and manufacturing and BFSI (banking, financial services, insurance). The startup's B2B clients include Indian IT firm Mphasis and Swiss technology company Temenos. 'At IT and ITES companies, they hire fresh graduates who can't be put on projects from day one," Kumar said. 'They need extensive training that is part of their onboarding programme and we work with them to make sure they can be deployed on projects." On the other hand, at GCCs, the focus shifts to upskilling and reskilling the workforce, Kumar added. Post-pandemic shifts To be sure, edtech's troubles started to grow in 2022 as the pandemic waned and students began to return to their classrooms. Startups in the sector faced slower growth and looked to pivot to more viable options. Additionally, Byju's collapse hurt the ecosystem, in terms of both valuations and investor faith in the space. Also Read | Byju's startup lesson: Don't get carried away with winner-takes-all dreams While several edtech companies switched to an offline model, others have turned to B2B for consistent revenue. Yet, companies told Mint their D2C business is still alive and kicking. 'If you look at the higher education segment, I don't see any downturn. Even if you look at the players in the upskilling and reskilling segment, I don't see any of the players struggling," said Simplilearn's Kumar. In fact, PhysicsWallah is among the few profitable edtechs that has stuck by its D2C business. Increasing AI demand The change in the edtech revenue mix comes as AI increasingly takes centre stage and enterprises look to plug holes in this space, from both an adoption and staffing perspective. 'AI can be adopted well into GCCs because they're highly process-driven organisations with specific turnaround times as well as predictability of work. In that regard, GCCs will be the torchbearers of AI adoption," said Nawka of PwC. upGrad Enterprises' Iyengar said that the division has seen 100% jump in enterprise sign-ups for AI-focused training in the past six months, across India, North America, Europe and the Middle East. 'What's encouraging is that this isn't just a top-down push–we're seeing equal enthusiasm from employees," he added. Also Read | GenAI may pile pricing pressure on customer support and maintenance work of IT services companies Popular courses upGrad Enterprises' most popular courses include generative AI for quality assurance/quality engineering teams and coding agents, and advanced GenAI courses for professionals working with large language models. At Simplilearn, AI and GenAI have become big themes across the four verticals that use its services. It's the same at Emeritus. 'Additionally, topics such as executive presence, communication, and negotiation & influence are in high demand across leadership levels," said Morarji. The increased focus on AI comes as organisations look to automate tasks, putting entry-level jobs at risk. The Future of Jobs report 2025 by the World Economic Forum points out that 85% of the employers surveyed plan to upskill their workforce, while 70% expect to hire staff with new skills. At the same time, 40% of employers are reducing staff as their skills become less relevant and 50% are planning to transition staff to growing roles. 'I can't see a better time for edtechs to target B2B as a segment because AI is disrupting everything and everyone wants to be on top of their game," PwC India's Nawka said.
Time of India
15 hours ago
- Time of India
'It's no longer a cost thing': GCCs shift from support units to strategic value creators
Once viewed as peripheral back offices or outsourcing outposts, India's Global Capability Centres (GCCs) are undergoing an identity shift. Today, they are emerging as strategic nerve centres—driving product innovation, global go-to-market capabilities, and Artificial Intelligence (AI) breakthroughs across industries. Take the instance of Bosch Global Software Technologies, a global digital engineering company, where the journey of GCCs spans a 30-year transformation into a global AI-led business unit. Meanwhile, Rakuten, a global financial group based in Tokyo, suggests renaming GCCs as Global Value Centres (GVCs), a shift that indicates the growing strategic and innovation-led value these centres contribute beyond cost efficiency. In their increasing role as R&D powerhouses, GCCs are not just applying AI but leading innovations across healthcare, real estate, mobility, and hardware. At Bosch, GCCs are steering the company's generative (Gen) AI roadmap, with GenAI frameworks helping enhance code libraries. In a similar vein, at Jones Lang LaSalle Incorporated (JLL), the global real estate conglomerate is focusing its internal hackathons on agentic AI. Meanwhile, Qualcomm, a global chip manufacturing giant, designs AI-enabled chipsets for next-gen vehicles, even as Philips Innovation Campus leverages AI to reduce MRI scan time by 50%. These signals of transformation were discussed at the final round of Bosch Conversations roundtable titled 'GCCs as Engines of Strategic Innovation: Creating Global Centers of Excellence'. Held on May 22 at the Hilton Embassy Bengaluru, industry leaders came together to chart the evolution of India's GCCs from cost centres to engines of strategic value. Live Events Against the backdrop of a sector poised to reach USD 105 billion and employ over 2.8 million people by 2030 , as projected by Union Labour Secretary Sumita Dawra earlier this year, the discussion delved into how GCCs are now pivotal to global product innovation, AI-led transformation, and go-to-market acceleration. The speakers included Ramaprasad Subramaniam, Vice President & GCC Lead, Qualcomm; Arvind Vaishnav, Head of Philips Innovation Campus, Philips; Pawan Sachdeva, Managing Director - Digital and Health Services Platform, Carelon Global Solutions; Manish Mittal, Director, GBS Corporate Shared Services, Novozymes (a Novonesis company); Pratik Nath, Managing Director, Epsilon India; Ashokkumar Jayakumar, CIO, JLL; Subbu Swaminathan, Senior Vice President – Product & Engineering, Rakuten; Soumitra Saha, MD and Country Head, Lumen India; and, Ramesh Ramaswamy, Head - Transformation, Bosch Software and Digital Solutions. Driving the AI-led shift One of the clearest illustrations of this multi-decade journey came from Ramesh Ramaswamy, Head of Transformation at Bosch Software and Digital Solutions. Reflecting on Bosch's early entry into the GCC space, he said, ' 'We began our GCC journey long before the term even existed—over 25-27 years back,' he recalled. 'For us, a GCC is not only about delivering for the headquarters, it is also about being close to the end markets enabling us to deliver high-value, relevant outcomes to the parent organization.' Ramaswamy traced the evolution of Bosch's GCC footprint across India, Vietnam, Mexico, and Poland—driven not just by access to talent, but by proximity to customer ecosystems. He emphasized how Bosch GCCs have matured from delivery units into true innovation hubs—creating new products and even monetizing them independently. Moving up the value chain: From innovation to execution This theme of end-to-end innovation was echoed by Arvind Vaishnav, Head of Philips Innovation Campus, who reinforced that India is no longer just executing ideas but generating them, particularly in healthtech. He pointed to Philips' SmartSpeed solution as a breakthrough in AI-led clinical outcomes. Speaking about the interventions that could make Indian healthcare robust, from predictive diagnostics to faster scans, the speaker highlighted the need for a broader mindset shift: 'Everyone is identifying these real-world pain points and striving to move up the value chain. True value is created only when you're solving meaningful problems—not just building for the sake of it.' He added that it's no longer enough to just deliver hardware or standalone products. 'The real differentiation comes from combining robust software with innovative thinking to create solutions that truly improve patient experience and clinical outcomes. That's how India can lead—not just in innovation, but in execution that has a global impact.' Solving real-world problems at scale Throughout the conversation, a common refrain was the deep customer orientation and problem-solving mindset. Philips stressed co-creation with clinicians; JLL builds tools that help brokers make decisions 'in front of the client'; Rakuten developed India-born products now used across Asia. For Ashokkumar Jayakumar, CIO at JLL, India's GCCs have become indispensable to the firm's digital-first real estate strategy. The Bengaluru centre, now 1,000-strong, leads key products such as Azara and enables real-time decision tools for brokers and clients. 'We want to give the best tech tools to [our brokers]—so building CRM systems or any apps that they can use to show in front of the clients... we enable tools so our clients can make informed decisions.' Jayakumar underscored how sustainability imperatives are shaping product development from India. 'Each and all your companies have sustainability goals, so we help our clients with that... we come up with tools and tech to see how we can reduce and help our clients get their goals.' He also pointed to India's growing influence in ideation: 'We run hackathons... (the) majority of the participation comes from our GCC... This year, actually, we are running a hackathon on agentic AI… exciting times.' Pawan Sachdeva, Managing Director - Digital and Health Services Platform, Carelon Global Solutions, highlighted how GCCs are evolving beyond cost arbitrage to become strategic platforms delivering tangible value in healthcare innovation. That said, Sachdeva cautioned against technology obsession over consumer experience. He shared a real-life example from within Carelon Global Solutions to demonstrate this. 'It wasn't some rocket science or major tech breakthrough. It was something very simple—my team began systematically reviewing user feedback on the app stores. If a single, small issue was responsible for multiple negative reviews, we fixed it. Then we proactively responded to the users to let them know their feedback had been addressed. This led to overwhelmingly positive responses,' Sachdeva illustrated. India as the nerve centre: From innovation hubs to global deployment Pratik Nath, Managing Director of Epsilon India, seconded Sachdeva's opinion, reinforcing the view that India's GCCs have evolved far beyond cost centres to become core engines of AI and martech innovation. Nearly half of Epsilon's engineering talent is based in India, Nath noted, leading global initiatives in predictive modelling, personalised marketing at scale, and campaign automation using generative AI. He urged a shift from legacy maturity models to outcome-led global leadership from day one. 'What's fascinating is the sheer scale and continuity of model evolution. Just in the time we've been speaking, over two billion model updates have happened globally. And many aren't shiny GenAI models—they're older, embedded systems like risk and recommendation engines, some dating back to the '90s. Innovation isn't about replacing them, but layering new capabilities like GenAI on top of what already works.' 'GCCs are often seen primarily as tech hubs, but they're just as capable of delivering high-quality customer experiences—even from thousands of miles away from the headquarters,' stressed Soumitra Saha, MD and Country Head, Lumen India. From being a traditional telco, Lumen is transitioning into a digital-first, AI-powered company—with India at the forefront of this shift, proactively piloting GenAI initiatives. 'A key success factor for GCCs over the next decade will be their ability to drive innovation in products, services, and experiences directly from India. But to do this effectively, they must combine deep domain expertise with strong business understanding.' From Rakuten's observability tech launched in India and scaled to Southeast Asia, to Qualcomm's India-led chipset design for global devices, to Philips' India-developed FDA filings—the narrative is clear: India is not just a talent pool, it's a launchpad. Subbu Swaminathan of Rakuten India offered a compelling reframe: from Global Capability Centres to Global Value Centres (GVCs). Over the past decade, Rakuten's Bengaluru-based hub has evolved from a conventional outsourcing unit to a launchpad for in-house product innovation. 'Started as… (an) outsourcing centre, but now, leading the innovation from India to Japan and other markets.' Swaminathan cited an in-house observability solution built in India and now scaled to multiple clients across Southeast Asia. 'We saw a need... So we entered and built our own observability solution and piloted at scale… launched the business from India.' For Rakuten, the GCC model is now about strategic alignment and business contribution. 'It's no longer a cost thing. It's about: how can you strategically look at the parent organization, and how can you increase the business contribution from India?' Closing the loop, Ramaprasad Subramaniam, Vice President & GCC Lead at Qualcomm, reflected on how India has moved from the periphery to the core of Qualcomm's global chip design strategy. Over two decades, the India GCC has grown from a cost arbitrage base to a full-stack innovation engine powering next-gen chipsets across smartphones, IoT, computing, and automotive use cases. He highlighted Qualcomm India's role in designing solutions for leading domestic brands such as Mahindra and Tata, and underlined that India now contributes to ARM-based laptop alternatives and future-forward chip architectures. As GCCs scale their ambitions, they are also expanding geographically to tap into India's broader talent base. Vaishnav noted that at Philips, there is a growing importance of building Tier-II/III ecosystems to avoid 'concentration risks' and tap into untapped talent. Similarly, Subramaniam affirmed Qualcomm's commitment to capability building across India, reinforcing the idea that GCCs are investing in geographic resilience. Responding to a discussion on how organisations perceive and position their GCCs, Manish Mittal, Director of GBS Corporate Shared Services at Novozymes (now part of Novonesis), explained that at this global bio-solutions leader, the India centre is not treated as a separate, siloed support unit, but as a fully embedded strategic extension of the global organisation. He emphasised that location is irrelevant when capabilities are core and integrated into enterprise decision-making. 'We are very integrated. We don't call ourselves a GCC… The core is strategic. It's not like 'this is India'—it's just, this is it. We are another function.' For more such critical insights on the future of GCCs and how GCCs are generating new revenue streams, not just supporting existing ones, watch the conversation here. 'It's no longer a cost thing': GCCs shift from support units to strategic value creators | Discussion Watch the full conversation here Bosch Conversations is a global, by-invite flagship series that brings together thought leaders. Hosted by Bosch Software and Digital Solutions , it focuses on digital disruptions and leadership in the context of market needs and industry challenges. Economic Times WhatsApp channel )
