Indian GCC model changing from execution-driven to taking ownership

The panel said all GCCs were going to benefit from this and deliver better productivity

Global capability centres (GCCs) in India have transformed from being execution-driven to ownership-driven, thereby taking on full responsibility of several business functions, according to experts at a panel discussion during 3AI’s flagship event ‘Beyond 2024’ in Bengaluru.

“Earlier, GCCs were attributed to one function whether it was finance, technology, or a specific area. Today, when it comes to sponsorship, it is at the group chief executive officer (CEO) level in most cases. This means that GCCs here are becoming a true microcosm connecting to all the business units… also alignment is becoming much more integral… It is no longer that GCCs are separate entities,” said Amit Kalra, managing director (MD) and head, Swiss Re Global Business Solution Centres India.

“The focus, which used to be cost, has now moved towards capability transformation…then on leadership and accountability. Over the last 10-15 years, the demographics of any GCC moved from junior to more of a mid-senior level across the spectrum. The entire mindset has changed from execution to ownership-driven. Today, everyone is focused on enabling the top line and not just productivity and efficiency,” said Kalra.
 

Indian GCCs have become “value amplifiers” for their global headquarters.

“India is the hub of GCCs because the work that happens here is common across the globe. Due to this, our ability to look at different parts of the organisation gives us the tools to do the transformation and value amplification,” said Lalitha Indrakanti, CEO, JLR Technology and Business Services India.

On the emergence of generative artificial intelligence (GenAI), Indrakanti said, “GenAI is here to stay. With this, our lives are going to get better in terms of productivity improvement. All GCCs are going to benefit from this and deliver better productivity…there will be many new roles that will come into play and impact the way we work. We need to be cautiously optimistic and adapt ourselves as we go along.”
 

Kalra sees a strong role for GenAI in how consumers can interact in local languages and understand their insurance product well.

“Another role would be in dealing with unstructured data…GenAI can create a lot of amplification. It creates more insights and value for consumers. There are a lot of opportunities in GenAI,” he added.  

On the potential of AI, Sameer Dhanrajani, CEO at 3AI said, “AI is not simply a passing trend but an essential tool in value creation, constant transformation and innovation. The possibilities that surround AI are truly infinite, and it’s a defining moment to learn and harness the power of AI. It will help succeed in an AI-powered economy and make it the heart of our core businesses.”

As of FY23, the GCC landscape in India has swelled to over 1,580 centres with a market size of $46 billion and a workforce of over 1.66 million people, according to the latest Nasscom-Zinnov report.

Despite a challenging start, in Q3 (October-December) alone, 21 new GCCs were set up across major Tier-1 cities like Bengaluru, Hyderabad, Chennai, NCR, Hyderabad, and Pune. Notably, 60 per cent of the new GCCs cover a diverse range of competencies. They include engineering R&D, IT, and business process management, indicative of the varied talent available in India.