Exploring Key Global Capability Centre Trends in India Q4CY2023

As the digital landscape continues to evolve, India remains a beacon for global enterprises seeking to establish their Global Capability Centers (GCCs). The fourth quarter of 2023 witnessed significant developments in this realm, providing insights into the shifting dynamics and emerging trends. Let's delve into the executive summary of the key trends that defined Q4CY2023, as unveiled by Nasscom and Zinnov.

Establishment of New GCCs

Q4CY2023 marked the establishment of 10 new GCCs in India. While this represents a decrease from the previous quarter, it underscores the sustained interest of multinational corporations in leveraging India's talent pool and infrastructure for their global operations.

Nasscom-Zinnov GCC Intensity Index

The quarter's Nasscom-Zinnov GCC Intensity Index rating stands at "Medium." This assessment considers various parameters such as the number of new GCCs, expansion activities, industry verticals, functions, tiers, and geographical locations. It serves as a barometer of India's attractiveness as a GCC destination.

Functional Diversity

A notable trend in Q4CY2023 was the inclusion of all three functional areas—Engineering Research and Development (ER&D), Information Technology (IT), and Business Process Management (BPM)—in approximately 60% of the new GCCs established. This multifaceted approach highlights the evolving nature of global operations and the demand for integrated solutions.

Dominance of Semiconductor Sector

The semiconductor sector emerged as a significant player, accounting for approximately 30% of the new GCCs established in India during the quarter. This underscores India's growing prominence in high-tech manufacturing and innovation-driven industries.

US-MNCs Spearheading Growth

Reflecting the strong ties between India and the United States, around 50% of the new GCCs established in Q4CY2023 were set up by US-headquartered multinational corporations. This reaffirms India's status as a preferred destination for American companies seeking to expand their global footprint.

Focus Areas

Key focus areas for both the new GCCs and the expansion activities associated with existing centers included cutting-edge domains such as Artificial Intelligence (AI) / Machine Learning (ML), Advanced Analytics, Cybersecurity, ADAS solutions, In-vehicle Infotainment, AI Hardware Solutions, Powertrain, and Foundational IP Solutions. This highlights India's emergence as a hub for innovation and technology-driven solutions across diverse sectors.

In conclusion, the trends observed in Q4CY2023 underscore India's resilience and adaptability as a preferred destination for global enterprises establishing GCCs. As the digital economy continues to evolve, India's role in driving innovation, fostering collaboration, and enabling business growth is poised to strengthen further in the years to come.