Latest news with #Zinnov
Time of India
4 days ago
- Business
- Time of India
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. Advertisement
Time of India
02-05-2025
- Business
- Time of India
GCC expansion facing delays amid tariff, geopolitical uncertainties
The setting up of new global capability centres (GCCs) and expansion of existing ones are facing some short-term pauses and delayed decision-making – particularly in tariff-sensitive sectors like automotive – amid uncertainty over proposed US tariffs, experts tracking the space told ET. #Pahalgam Terrorist Attack Nuclear Power! How India and Pakistan's arsenals stack up Does America have a plan to capture Pakistan's nuclear weapons? Airspace blockade: India plots a flight path to skip Pakistan A large US-based technology firm with a GCC in Noida, which wanted to expand, has decided to wait till September before finalising plans, citing reports that the US economy has shrunk, said Alouk Kumar, CEO of Inductus, a consulting firm that advises GCCs. 'Firms across sectors like healthcare, BFSI and aviation, who had made enquiries to set up in India, have also delayed final decisions,' Kumar said. Delayed decision-making is particularly noticeable in tariff-sensitive sectors like automotive and integrated hardware, experts said. 'But these are more tactical pauses than structural pullbacks,' said Karthik Padmanabhan, managing partner-GCC advisory at management consulting firm Zinnov. Live Events The proposed US tariffs and heightened geopolitical tensions are adding to concerns. Discover the stories of your interest Blockchain 5 Stories Cyber-safety 7 Stories Fintech 9 Stories E-comm 9 Stories ML 8 Stories Edtech 6 Stories 'While it is still early to fully assess the extent of the impact, geopolitical developments are contributing to near-term caution,' Rajesh Nambiar, president of industry body Nasscom, told ET. The impact may become more visible if uncertainties linger, experts said. Existing GCCs are under pressure from their headquarters to optimise costs. 'We're observing a clear directive from global HQs for Indian GCCs to optimise costs amidst economic uncertainties, not through drastic cuts but via strategic enhancements,' said Kumar of Inductus. Zinnov's Padmanabhan said GCCs are aggressively adopting generative artificial intelligence (GenAI) and robotic process automation (RPA) to cut down effort in finance, human resources, and operations. Costs are also being optimised through a focus on location diversification to tier-2 and tier-3 cities and structural redesign moving towards productised pods that are leaner and deliver more, he added. Bright outlook The long-term outlook remains optimistic for India, while recruitment by GCCs is continuing as usual with no hiring freezes on the cards. 'Any changes will depend on significant HQ budget cuts, making this a wait-and-watch situation,' said Arindam Sen, partner and GCC sector leader-technology, media & entertainment, and telecommunications, at EY India. There is, however, a greater focus on critical and niche skills in AI/ML, cybersecurity, cloud, and data engineering, and on value rather than volume in hiring, said Jaspreet Singh, partner at Grant Thornton Bharat. Padmanabhan feels the ripple effects of the tariffs may even be a tailwind for India, with an uptick in digital supply chain work, nearshoring support, and product engineering mandates being shifted to India already. 'Despite concerns about Trump's pro-America policies, the Indian GCC ecosystem is unlikely to face a slowdown,' said Vikram Ahuja, cofounder of ANSR, a GCC advisory firm. 'While policy shifts may influence outsourcing trends in certain industries, the demand for AI, digital transformation and specialised talent will continue to drive US companies to leverage India's GCCs as strategic assets.' India is on track to reach 1,900 GCCs by end-2025 from 1,700 in FY24, according to estimates from Zinnov. GCCs in the country currently employ about 1.9 million people and generate $64.6 billion in revenues, as per industry estimates. This is projected to reach about $99-105 billion by FY2030, employing 2.5-2.8 million people.
Time of India
01-05-2025
- Business
- Time of India
Ahmedabad-GIFT City zone emerges as Tier-II magnet for global capability centres
Ahmedabad: The Ahmedabad-Gandhinagar-GIFT City belt is rapidly rising as India's most promising Tier-II zone for global capability centres (GCCs), fuelled by infrastructure, state incentives and a growing pool of skilled talent. According to an Aug 2024 report by global consulting firm Zinnov, Ahmedabad ranks No. 1 among 20 Tier-II cities in ecosystem favourability for GCCs. Already home to over 35 GCCs and global in-house centres (GICs), 25+ service providers, and more than 60 startups, Ahmedabad has become the largest GCC hub outside India's Tier-I metros. GIFT City, in particular, has become a magnet for global firms eyeing high-value innovation, IT, and back-office operations. In the past year, new entrants such as Infineon Technologies, a chipmaker, and Technip Energies, an energy transition firm, set up under the non-financial services (Non-FS) category, joining established players like IBM, Oracle, Capgemini, Google, TCS, Infosys, and Wipro. Sources told TOI that Telus Digital is also expected to join the league. " GIFT City IFSC offers a 10-year tax holiday under Section 80LA — the only such benefit in India. Add to that Gujarat's industry-friendly policies, reduced stamp duty, discounted power tariffs, and PF reimbursements of up to 100% for women, and the zone is a compelling proposition," said Jaimin Patel, Partner, EY. With more than 850 IFSC units and 25% annual growth, GIFT City's appeal continues to rise. The zone's regulatory clarity, scalability, and business-ready infrastructure are drawing major multinationals including Bank of America, SP Global, Amneal Pharmaceuticals, Kraft Heinz, and Thomson Reuters. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Click Here - This Might Save You From Losing Money Expertinspector Click Here Undo Policies like the Gujarat Semiconductor Policy 2022-27 and the recently introduced GCC Policy have further fuelled interest from tech and ESDM players, offering targeted subsidies and faster project clearances. "GIFT City is emerging as a robust GCC base, offering sustainable infrastructure, strong policy support, and ease of doing business," said Tapan Ray, MD & Group CEO, GIFT City. "We are also building partnerships with global universities and rolling out skill programmes to ensure a steady talent pipeline." While entry-level talent availability is strong, experts acknowledge the need for companies to nurture mid- and senior-level professionals. However, the region scores high on quality of life, affordability, safety, and overall ease of living — factors that increasingly matter in global location strategy. Technip Energies is one of the recent global players to bet on the region. "Our GIFT City office, Technip Energies' fourth base in India, exceeded expectations," said B V Ramanakumar, director of the Ahmedabad operating centre. "With strong engineering talent, proximity to key clients like Reliance and Adani, and solid infrastructure, we are onboarding 50–60 employees a month and are on track to hit 400 by Q4. GIFT City's support, especially in securing additional space, has been excellent." As more companies evaluate India's next wave of opportunity, the Ahmedabad-Gandhinagar-GIFT City belt is making a strong case, offering Tier-I aspirations with Tier-II economics. Box: India's hottest Tier-II GCC hub Ecosystem at a glance - 35+ global capability centres (GCCs) & global in-house centres (GICs) - 25+ IT & business service providers - 60+ startups driving innovation - 850+ IFSC units (International Financial Services Centre) - 25% YoY growth in IFSC units - Top-ranked Tier-II city in India for GCC ecosystem favourability (Zinnov, Aug 2024) What's driving the growth? - 10-year tax holiday under Section 80LA at GIFT IFSC – only such benefit in India - Gujarat govt incentives - Reduced stamp duty - Discounted power tariffs - 100% PF reimbursement for women hires - World-class infrastructure and scalable office spaces - Affordable housing in Gandhinagar; Better quality of life
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.
