Facilitating growth of GCC is a priority for govt
Facilitating growth of global capability centres in the country is a priority for the government as the GCCs create jobs and consequently provide a boost to the economy as well as facilitate innovation, Secretary to the Union Ministry of Electronics and Information Technology S. Krishnan said here on Wednesday.
The senior official, who was speaking at the Nasscom GCC Summit, said this citing the plans of the government to spread the growth of such facilities to tier II and III cities. He also underscored how the GCCs ought to generate more higher quality jobs.
'The more higher order jobs, engineering and engineering R&D and product development coming into India is something the country welcomes,' he said.
In the Union Budget for 2025-26, the government mooted a national framework for GCC as guidance to States for promoting such facilities in tier 2 cities. He said expanding to tier II and III cities would benefit the companies by way of significant cost reduction and talent retention.
Tamil Nadu and Karnataka were a few States that have also launched their own programmes to push for GCCs in tier II and III cities, he said, adding the framework of the Centre is to encourage more States promote growth of such facilities in locations beyond the major cities.
On the sidelines, to a query from media on the India AI Mission, Mr. Krishnan said the response to call for proposals to develop indigenous foundational AI models, including Large Language Models, has been positive. It has been extremely good with 67 proposals received in the first round and 120 in the next.
He said the government is keen on promoting innovation through AI. Regulation of the emerging technology is not the priority.
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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. 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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.
