Latest news with #GVCs
Time of India
2 days ago
- Business
- 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 )
Time of India
09-05-2025
- Business
- Time of India
Trade pact with UK to boost India's electronics exports: ICEA
NEW DELHI: The recently signed UK-India free-trade agreement (FTA) will boost the opportunities for homegrown electronics industry to have a major share in the UK's electronics imports, the India Cellular and Electronics Association ( ICEA ) said on Friday. 'Today, the UK imports $76 billion of electronics goods from various geographies and a mere $2 billion from India. This FTA will facilitate export opportunities for Indian electronics industry to have a major share of the UK's electronics imports, helping India move swiftly towards its electronics export target of $180–200 billion by 2031,' Pankaj Mohindroo, chairman of ICEA, said in a statement. The pact, signed on May 6, 2025, between the two major economies, will positively impact manufacturing across labour and technology-intensive sectors and will open up export opportunities for sectors such as auto parts, organic chemicals, goods and toys, smartphones, and optical fibre cables, among others. 'This will substantially improve Indian goods competitiveness in the UK vis-a-vis other countries,' the Central government said in a statement recently. The ICEA, in turn, said that the FTA will shape the future of the Indian electronics manufacturing sector and partnerships with global value chains (GVCs). The agreement is set to double bilateral trade from $60 billion to $120 billion by 2030, with India's exports gaining unprecedented market access in the UK, according to the industry association. The agreement eliminates tariffs on 99% of Indian exports, expanding special access to domestically manufactured electronics, engineering goods, auto components, IT services, and more. 'The FTA eases the employment opportunities for Indian professionals, including contractual service suppliers, business visitors, intra-corporate transferees and dependent children of intra-corporate transferees with right to work,' ICEA said.
Time of India
27-04-2025
- Business
- Time of India
Centre launches portal and guidelines for electronics component manufacturing scheme (ECMS) to strengthen domestic ecosystem
The Centre has launched the guidelines and portal for the Electronics Component Manufacturing Scheme (ECMS) to create a strong component manufacturing ecosystem by attracting large investments, both global and domestic. Union Minister for Electronics and Information Technology Ashwini Vaishnaw launched the portal and guidelines on April 26, 2025. The Union Cabinet, chaired by the Prime Minister, had approved the ECMS earlier, with the scheme being officially notified on April 8, 2025. It aims to develop strong manufacturing capacities and capabilities, integrate Indian companies with Global Value Chains (GVCs), and support India's vision of becoming a global hub for electronics manufacturing. Speaking at the launch event, Vaishnaw said that electronics production in India has grown five-fold while exports have expanded more than six-fold, with a compound annual growth rate (CAGR) exceeding 20% for exports and over 17% for production. He noted that segments like mobile phones, servers, laptops, and IT hardware have shown strong growth and asserted that the electronics industry is poised for significant expansion. Describing ECMS as a 'horizontal scheme,' Vaishnaw explained that its benefits would extend beyond electronics to sectors such as industrial, power, and automobile manufacturing. He emphasized that a complete and resilient electronics manufacturing ecosystem is taking shape across the country. Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Trade Bitcoin & Ethereum – No Wallet Needed! IC Markets Start Now Undo The Minister underscored the importance of innovation and quality standards, stating that many companies have now established design teams and highlighting the need for every participant to focus on developing in-house design capabilities. Stressing the importance of quality excellence, Vaishnaw called for achieving Six Sigma standards across the sector and warned that companies failing to adhere to high-quality benchmarks would be 'cut short.' Highlighting India's advances in emerging technologies, Vaishnaw informed that 350 datasets have already been uploaded on AI Kosh, an initiative to promote AI research and innovation. He also announced that four AI tools developed by various IITs would soon be released to further strengthen the digital ecosystem. Additionally, the Minister said that techno-legal solutions are being developed to address challenges in the electronics ecosystem. Vaishnaw concluded by stating that ECMS has already built a strong pipeline of projects ready for approval and expressed confidence that this is just the beginning of India's rapid growth as a global electronics hub.
The Print
27-04-2025
- Business
- The Print
Centre launches portal, guidelines for electronics component manufacturing scheme; aims for large investments
Union Minister for Electronics and Information Technology Ashwini Vaishnaw launched the guidelines and portal on April 26. New Delhi [India], April 27 (ANI): Centre has launched guidelines and portal for the Electronics Component Manufacturing Scheme (ECMS) to develop a strong component ecosystem by attracting large investments, both global and domestic, in the electronics component manufacturing ecosystem. The Union Cabinet, chaired by Prime Minister, had approved the Electronics Component Manufacturing Scheme (ECMS), which was notified on April 08, 2025. The scheme aims to develop strong manufacturing capacity and capabilities and integrate Indian companies with Global Value Chains (GVCs). Speaking at the launch, Union Minister stated that electronics production has grown five-fold and exports have grown more than six-fold, with export CAGR exceeding 20 per cent and production CAGR over 17 per cent. He added that mobile phones, servers, laptops, and IT hardware have seen very strong progress and that the industry is poised to take off significantly. Vaishnaw described ECMS as a horizontal scheme that will support not just electronics but also industrial, power, automobile sectors and more. He emphasized that a complete ecosystem for electronics manufacturing is coming into place across the country. Underscoring the importance of innovation and quality, the Minister said that many companies have now established design teams, and it is essential that every participant develops such teams. Stressing on quality, he called for achieving Six Sigma standards across the sector, warning that those not adhering to quality benchmarks would be cut short. He said the twin focus on design capability and quality excellence would drive India's leadership in electronics. Vaishnaw also spoke about India's advances in AI and data-driven solutions. He informed that 350 datasets have already been uploaded on AI Kosh, and four AI tools developed by IITs will soon be released. He further stated that techno-legal solutions are being developed to strengthen the electronics ecosystem. The Minister informed that ECMS has a strong pipeline of projects ready for approval and expressed confidence that this marks just the beginning of India's rapid growth as a global electronics hub. (ANI) This report is auto-generated from ANI news service. ThePrint holds no responsibility for its content.
Business Recorder
24-04-2025
- Business
- Business Recorder
The Chinese fish town caught in the US tariff net
MAOMING: In Maoming, a southern Chinese city where a giant tilapia statue watches over traffic at an intersection, the fish isn't just a budget-friendly dinner, but a profession, income and way of life for thousands. Today, all of that is at risk from the trade war. An area roughly one and a half times the size of San Francisco is given over to tilapia farms in Maoming. Fish nurseries and feed lots in turn sustain the farms. Sixteen factories dot the city churning tilapia into fillets for export, much of it to supermarket freezers in the U.S. Several rounds of U.S. tariffs mean China's $425 million in tilapia exports to the United States are subject to duties of 170%, all but pricing them out of their largest export market. In late April, fish nurseries in Maoming visited by Reuters talked of not getting orders for new fry; feed makers said customers are cutting back. Processors are idle and many farmers say they are making losses at today's prices. Tongwei, one of China's biggest aquaculture businesses, said this month that one-in-10 tilapia farmers in the country could lose their jobs. 'These high tariffs have hit us brutally,' said Huang Songfei, a longtime buyer in Maoming. 'The whole chain is hurting. People are at risk of losing their jobs.' Tilapia may be a small segment of trade between the U.S. and China but the threat to livelihoods in Maoming is also being felt in both countries as the trade war throws up massive tariffs on imports. Or, as Huang, put it: 'We're stuck.' To breed or not to breed March to May is usually the peak stocking season for tilapia. Recently hatched fish are typically in high demand, swiftly sold and sent off to farmers. This spring, orders are scarce. 'This is the hardest year ever,' a worker said, asking not to be identified. 'Normally, we'd have sold a lot by now. But no one's buying. Farmers are scared.' Her boss said sales have fallen by more than half. 'Some aren't even exporting to the U.S., but they are panicking anyway,' he said, also requesting anonymity. 'It's a chain reaction.' Exposure to US tariffs through GVCs in Asia and the Pacific Tilapia prices crashed 17% in early April as Washington and Beijing traded tariff blows. Despite a modest recovery, prices are dangerously low and some farmers are struggling to make ends meet, Huang said. The city's 16 export processors are also struggling. They once exported about 100,000 tonnes of tilapia a year, mostly to the United States and Canada, according to the local government, enough to satisfy the average annual fish intake of 25 million Americans. 'If this keeps going, everyone will go bankrupt,' said Zhu Huazhi, a buyer for several processing plants. More than 60% of their tilapia once went to the U.S. Searching for a lifeline In nearby Hainan province, the U.S. accounts for half of its tilapia exports and the local aquatic products' association urged companies this month to find new markets at home and abroad. However, replacing American demand is difficult. While markets exist in the European Union, Africa and the Middle East - they can't quickly or completely replace U.S demand. Africa, for example, largely imports whole fish with minimal processing, according to a tilapia exporter. The domestic economy is no easy fix either. The local market is weak, consumers are cautious and spending is slow. In Maoming, people are pinning their hopes on a trade deal. 'We'll see who can survive this,' Zhu said. 'I believe in China's economy. If the tariffs are resolved, orders will come back.'
