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Time of India
18-05-2025
- Business
- Time of India
India sees growth in mid-market GCCs
Representative image BENGALURU: India is experiencing an uptick in mid-market global capability centres (GCCs). The country witnessed over 140 greenfield GCCs come up during the past 30 months, according to data from HR consultancy firm Xpheno's research. These GCCs initially planned for 70,000 positions, with individual centres targeting between 50 to 3,000 roles. A recent Nasscom-Zinnov report showed that India has over 480 mid-market GCCs , with 210,000 professionals employed. Mid-market GCCs are capability centres set up by mid-sized firms with annual revenue ranging from $100 million to $1 billion. They represent 27% of all GCCs and 22% of total GCC units in the country. In the last five years alone, more than 110 new facilities were established, representing approximately 35% of all new GCC units in India within this period. 480+ centres, 2.1 lakh employed This contrasts with the larger GCCs in terms of operational scale but not in the ability to deliver high-quality services and innovation. India will be home to over 120 new mid-market GCCs by 2026, according to research by Bengaluru and US-based ANSR. The majority of mid-tier GCCs in India originate from North America (60%). European nations contribute 25% of these centres, led by Germany, the UK, Ireland, Spain, and France. Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Trading CFD dengan Teknologi dan Kecepatan Lebih Baik IC Markets Mendaftar Undo The Asia-Pacific region, including Australia, New Zealand, Japan, and Singapore, accounts for 10% of these establishments. Some of the mid-market GCCs that entered India in the last 2-3 years include Revolut, Papa Johns, Raksul, and Outbrain, among others. These centres are primarily situated in Bengaluru, Hyderabad, and Pune. Kedar Pathak, GCC talent specialist at Xpheno, said that tier-1 locations provide superior talent availability, varied skill sets, and facilities. Although tier-2 locations are preparing for future growth, they remain secondary choices for GCC establishments. Modern GCCs have evolved beyond technological hubs to encompass diverse business operations. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
26-04-2025
- Business
- Time of India
Insourcing: 'Mid-mkt' centres drive GCC boom
HYDERABAD: India's mid-market GCCs ( global capability centres ) are experiencing a surge, outshining their peers by unlocking new opportunities. This growth is creating a flywheel effect, allowing them to leverage a diverse talent pool. India has over 480 mid-market GCCs, with 2.1 lakh employees, as shown in a Nasscom-Zinnov report. Mid-market GCCs are capability centres set up by mid-sized firms with annual revenue ranging from $100 million to $1 billion. They represent 27% of all GCCs and 22% of total units in the country. In the last five years, more than 110 new facilities were set up, representing approximately 35% of all new GCC units in India within this period. About 60% of end-to-end platform ownership in enterprise portfolios is driven from India by mid-market GCCs. Significant work is being done across AI/ML, cybersecurity, cloud, and data science. India hosts 47% of global product management talent and 25% of the deeptech workforce for mid-market GCCs. Pari Natarajan, CEO and co-founder of global management company Zinnov, said that in mid-market companies, private equity ownership plays a significant role. Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Use an AI Writing Tool That Actually Understands Your Voice Grammarly Install Now Undo These private equity firms implement structured value creation strategies, with India-based GCCs being a crucial component. "When such centres don't exist, establishing them becomes a strategic board-level directive. For mid-market firms without private equity backing, the push towards India centres comes from board members who serve as operational leaders," he said. North American firms, the report said, show a higher propensity to globalise, and India becomes an ideal destination given the learning agility and depth in the talent. The key destinations for mid-market GCCs continue to be Bengaluru, Hyderabad, NCR, and Chennai, which collectively host 74% of new GCC establishments. Notably, Hyderabad has evolved into a significant talent hub for mid-market GCCs during the past five years, accounting for 25% of the workforce expansion. Mid-market GCCs focus on delivering high-value, specialised services while maintaining a leaner operational model compared to larger GCCs. Mid-market GCCs promote talent to site leadership 20% faster, enabled by leaner structures, early ownership, and direct visibility to global mid-market GCCs often start as outposts like their larger peers, they tend to progress 1.2 times faster along the maturity curve. Stay informed with the latest business news, updates on bank holidays and public holidays . Master Value & Valuation with ET! Learn to invest smartly & decode financials. Limited seats at 33% off – Enroll now!
Time of India
22-04-2025
- Business
- Time of India
India home to over 480 mid-market GCCs, employing over 2 lakh employees
1 2 3 4 5 6 Hyderabad: India's mid-market global capability centres (GCC) are experiencing a surge, outshining their peers by unlocking new opportunities. This growth is creating a flywheel effect, allowing them to leverage a diverse talent pool. India has over 480 mid-market GCCs, with 2,10,000 professionals employed, as shown in a Nasscom-Zinnov report. Mid-market GCCs are capability centres set up by mid-sized firms with annual revenue ranging from $100 million to $1 billion. They represent 27% of all GCCs and 22% of total GCC units in the country. In the past five years alone, more than 110 new facilities were established, representing approximately 35% of all new GCC units in India within this period. About 60% of end-to-end platform ownership in enterprise portfolios is driven from India by mid-market GCCs. Significant work is being done across AI/ML, cybersecurity, cloud, and data science. India hosts 47% of global product management talent and 25% of the deeptech workforce for mid-market GCCs. Pari Natarajan, CEO and co-founder of global management company Zinnov, said that in mid-market companies, private equity ownership plays a significant role. These private equity firms implement structured value creation strategies, with India-based GCCs being a crucial component. "When such centres don't exist, establishing them becomes a strategic board-level directive. For mid-market firms without private equity backing, the push towards India centres comes from board members who serve as operational leaders," he said. India ideal destination for global GCCs North American firms, the report said, show a higher propensity to globalise, and India becomes an ideal destination given the learning agility and depth in the talent. The key destinations for mid-market GCCs continue to be Bengaluru, Hyderabad, NCR, and Chennai, which collectively host 74% of new GCC establishments. Notably, Hyderabad has evolved into a significant talent hub for mid-market GCCs during the past five years, accounting for 25% of the workforce expansion. Experts believe size doesn't matter if value holds greater significance than scale. "The key is that we start to see these companies maturing in value much faster, and mid-market GCCs tend to have a higher density of product managers and architects. They are setting up with the mindset of needing to build products, accelerate engineering footprint, and foster innovation," he said. About 60% of end-to-end product and platform ownership in enterprise portfolios is driven by mid-market GCCs in the country. When it comes to the depth of the capabilities, 47% of global product management talent in mid-market GCCs is anchored in India. Mid-market GCCs focus on delivering high-value, specialised services while maintaining a leaner operational model compared to larger GCCs. Mid-market GCCs promote talent to site leadership 20% faster, enabled by leaner structures, early ownership, and direct visibility to global leaders. Nasscom president Rajesh Nambiar said, "The next wave of global capability will not come from size, but from speed, specialisation, and strategic influence. With world-class talent and a vibrant digital ecosystem, mid-market GCCs are no longer just delivery engines but are emerging as cultural innovation labs and centres of excellence, driving R&D, product innovation, and enterprise digitisation for global impact." GCC's growing faster While mid-market GCCs often start as outposts like their larger peers, they tend to progress 1.2 times faster along the maturity curve aided by focused charters and closer reporting alignment to the GCC, the report said. Mid-market GCCs house high-calibre engineering talent and serve as global hubs for key workloads, including AI, product development, prompt engineering, and IoT. The Nasscom-Zinnov report showed that large mid-market headquarter clusters in the USA, UK, Germany, and Japan remain underpenetrated in India, representing a strategic opportunity for targeted regional outreach and setup support. Even as mid-market firms benefit from flexible build-operate-transfer (BOT) and shared services models, reducing upfront cost and complexity, India remains an preferred GCC-as-a-service destination. Hyderabad: India's mid-market global capability centres (GCC) are experiencing a surge, outshining their peers by unlocking new opportunities. This growth is creating a flywheel effect, allowing them to leverage a diverse talent pool. India has over 480 mid-market GCCs, with 2,10,000 professionals employed, as shown in a Nasscom-Zinnov report. Mid-market GCCs are capability centres set up by mid-sized firms with annual revenue ranging from $100 million to $1 billion. They represent 27% of all GCCs and 22% of total GCC units in the country. In the past five years alone, more than 110 new facilities were established, representing approximately 35% of all new GCC units in India within this period. About 60% of end-to-end platform ownership in enterprise portfolios is driven from India by mid-market GCCs. Significant work is being done across AI/ML, cybersecurity, cloud, and data science. India hosts 47% of global product management talent and 25% of the deeptech workforce for mid-market GCCs. Pari Natarajan, CEO and co-founder of global management company Zinnov, said that in mid-market companies, private equity ownership plays a significant role. These private equity firms implement structured value creation strategies, with India-based GCCs being a crucial component. "When such centres don't exist, establishing them becomes a strategic board-level directive. For mid-market firms without private equity backing, the push towards India centres comes from board members who serve as operational leaders," he said. India ideal destination for global GCCs North American firms, the report said, show a higher propensity to globalise, and India becomes an ideal destination given the learning agility and depth in the talent. The key destinations for mid-market GCCs continue to be Bengaluru, Hyderabad, NCR, and Chennai, which collectively host 74% of new GCC establishments. Notably, Hyderabad has evolved into a significant talent hub for mid-market GCCs during the past five years, accounting for 25% of the workforce expansion. Experts believe size doesn't matter if value holds greater significance than scale. "The key is that we start to see these companies maturing in value much faster, and mid-market GCCs tend to have a higher density of product managers and architects. They are setting up with the mindset of needing to build products, accelerate engineering footprint, and foster innovation," he said. About 60% of end-to-end product and platform ownership in enterprise portfolios is driven by mid-market GCCs in the country. When it comes to the depth of the capabilities, 47% of global product management talent in mid-market GCCs is anchored in India. Mid-market GCCs focus on delivering high-value, specialised services while maintaining a leaner operational model compared to larger GCCs. Mid-market GCCs promote talent to site leadership 20% faster, enabled by leaner structures, early ownership, and direct visibility to global leaders. Nasscom president Rajesh Nambiar said, "The next wave of global capability will not come from size, but from speed, specialisation, and strategic influence. With world-class talent and a vibrant digital ecosystem, mid-market GCCs are no longer just delivery engines but are emerging as cultural innovation labs and centres of excellence, driving R&D, product innovation, and enterprise digitisation for global impact." GCC's growing faster While mid-market GCCs often start as outposts like their larger peers, they tend to progress 1.2 times faster along the maturity curve aided by focused charters and closer reporting alignment to the GCC, the report said. Mid-market GCCs house high-calibre engineering talent and serve as global hubs for key workloads, including AI, product development, prompt engineering, and IoT. The Nasscom-Zinnov report showed that large mid-market headquarter clusters in the USA, UK, Germany, and Japan remain underpenetrated in India, representing a strategic opportunity for targeted regional outreach and setup support. Even as mid-market firms benefit from flexible build-operate-transfer (BOT) and shared services models, reducing upfront cost and complexity, India remains an preferred GCC-as-a-service destination.
The Hindu
22-04-2025
- Business
- The Hindu
Hyderabad a talent hotspot for mid-market GCCs
Hyderabad along with Bengaluru has emerged as leading talent hotspot for global capability centres (GCCs) of mid-sized enterprises or mid-market GCCs over the last five years, contributing 25% of talent growth, Nasscom-Zinnov said in a report. Bengaluru, Hyderabad, National Capital Region (NCR) and Chennai remain leading destinations for mid-market GCCs attracting 74% of all new GCC units established. Mid-market GCCs are established by mid-sized enterprises or firms with annual global revenues typically ranging between $100 million to $1 billion. The focus of the facilities is on delivering high-value, specialised services while maintaining a leaner operational model compared to larger GCCs. While Bengaluru is a natural choice as India's largest tech workforce hub for scaling mid-market innovation centres, for Hyderabad Grade A infrastructure availability, proactive policies and lower attrition help attract the firms. 'Proactive government support, affordable [quality] infrastructure and potential to scale have made Hyderabad a rising favourite among mid-market digital and engineering GCCs,' the findings of the report showed. Chennai attracts a higher proportion of mid-market GCCs due to cost advantages, compared to other major cities, in addition to government incentives, improved infrastructure and rising talent availability. Cities such as Ahmedabad, Coimbatore, Thiruvanthapuram and Vadodara on the back of improved connectivity, relatively lower cost of living as well as cost effective tech talent and targeted incentives are attracting early stage mid-market GCCs teams, according to the findings. The report was unveiled on the opening day of a two-day Nasscom GCC Summit that got under way here. The authors of the Nasscom-Zinnov report said GCCs continue to be a key growth sector for the tech industry in India, contributing nearly one-third of the industry's total exports. Within this, mid-market GCCs are emerging as high-impact innovation hubs, driving agility, product excellence and enterprise transformation at scale. India is home to more than 480 mid-market GCCs and 680 mid-market GCC units that employ 2.10 lakh professionals. They have been instrumental in shaping India's GCC narrative — accounting for 27% of all GCCs and 22% of total GCC units in the country. Atleast 45 new mid-market GCCs have set up operations in India in the past two years alone, accounting for nearly 35% of total GCCs and 30% of total GCC units during this period, Nasscom said in a release. 'The next wave of global capability will not come from size, but from speed, specialisation and strategic influence,' Nasscom president Rajesh Nambiar said. Talent attraction, operational scalability and ecosystem influence that can limit their growth opportunities and strategic potential are some of the challenges mid-market GCCs encounter. A lack of standardised operating procedures limits efficiency and cross functional collaboration. 'The most underrated transformation in India's tech landscape is the rise of mid-market GCCs,' Zinnov CEO Pari Natarajan said. With 1.30-1.50 lakh mid-market firms globally, India stands to attract an estimated 30,000 to 40,000 of them, especially from the U.S., U.K., Germany and Japan and verticals such as software and internet, BFSI and healthcare. For this, the country must focus on streamlining entry pathways, enabling cost-effective GCC-as-a-service models and building vibrant innovation clusters and proactively driving favourable policies.
