Rising Bharat Summit: AI accelerating transformation in Indian GCCs

More GCCs continue to beeline for the Indian market across sectors, with Rohan Lobo, partner, Deloitte South Asia, noting that around 5,000 firms are planning to set up GCCs in India

• AI adoption is transforming GCCs into strategic global functions
• India hosts 2,000 GCCs, with metros leading due to infrastructure
• 5,000 more firms plan to set up GCCs in India across sectors

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Key players in the development of global capability centres (GCCs) in India said at the Rising Bharat Summit that the transformation of GCCs from a cost-arbitrage mechanism to a key strategic function of major global corporation is being driven by the uptake of artificial intelligence, with major innovation by local talent.

“GCCs are driving around 40% of the commercial real estate market…We are seeing that with digital transformation and the adoption of AI, the actual R&D is happening in India. Innovative, high-end, and front-office functions are happening in India, said Karan Virwani, MD and CEO of WeWork India.

Kiran Cherukuri, EVP and global practice head for GCCs, said that around 65 percent of GCCs have experimented and rolled out AI pilots.

Currently, India has around 2,000 GCCs across cities such as Bengaluru, Chennai, Hyderabad, Pune, Mumbai, and Delhi NCR.

While some firms have looked to Tier-II and III markets to take advantage of wide talent pools, Virwani said that metropolitan markets will continue to dominate due to their physical and and social infrastructure. Cherukuri also added that Tier-II cities may not be appropriate for all use cases for GCCs.

Cherukuri also noted that recent trade tensions between India and the US, and global protectionism, actually increased the number of GCCs in India. Over the next few years, Cherukuri added that around 50-60 GCCs will be added in India every quarter.

More GCCs continue to beeline for the Indian market across sectors, with Rohan Lobo, partner, Deloitte South Asia, noting that around 5,000 firms are planning to set up GCCs in India, working on functions such as developing autonomous electric vehicles for logistical operations.

As for the future of GCCs, Aravind Maiya, co-founder and CEO OF EmbarkGCC, said that some of the GCCs operated by overseas firms may go for public listings in India, driven by innovation and continued strategic initiatives.