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80% of New GCCs Prioritize AI/ML Capabilities : ANSR Quarterly GCC Report
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- GCCs evolve towards becoming ‘digital twins’ of their headquarters
- 40% of corporate headcount operates from GCCs
- India GCCs to host as many as 60+ CIOs and SVP leaders by the end of 2024
Bangalore, April 2024: India commands over 50% of the global GCC market, with an estimated 5,000 global leadership roles situated in Indian GCCs, reveals the quarterly GCC report by ANSR. Given its unique mix of abundant tech talent, robust start-up ecosystem, and continuous government support, India remains the most-preferred destination of choice to setup a GCC.
As businesses aim to leverage India’s skilled workforce and favourable economic conditions, the GCC sector, presently valued at $46 billion, is forecasted to surge to $110 billion by 2030. This growth trajectory is expected to employ over 4.5 million professionals across 2400 GCCs.
Here are the key findings of the report
- The GCC location landscape in India:
Tech hubs like Bengaluru and Hyderabad have solidified their positions as major GCC hubs, boasting over 30% and 19% GCC presence, respectively. Following closely behind are Delhi (15%), Mumbai (12%), Pune (10%), and Chennai (9%), as highlighted in the ANSR report. GCCs have a presence in 15+ locations apart from these 6 tier-1 hubs.
Gujarat International Finance Tec-City (GIFT City) in Ahmedabad is emerging as an attractive destination. The regulatory environment at GIFT SEZ offers benefits such as competitive taxes, streamlined business processes, relatively lower operational costs, and top-notch infrastructure, according to the ANSR report.
- New GCCs, Capabilities and Functions
The industry is experiencing a significant diversification in demand and capability functions, driven by a wide-ranging influx from various sectors. Beyond corporates, significant demand drivers are emerging from sectors like Healthcare (21%), Hi-Tech (21%), BFSI (14%), Manufacturing (14%), and Retail (7%).
With AI ranking in top 3 priorities for 74% of CIOs in FY24, GCCs are increasingly directing their focus towards digital capabilities, notably Artificial Intelligence/Machine Learning (AI/ML) and Data Analytics, with a staggering 80% of attention pivoting in that direction. Interestingly, this surpasses the emphasis placed on the most prominent traditional tech capabilities of Application Development and Maintenance (ADM), which stands at 78%.
- Talent trends in GCCs:
Companies are realizing that skills and innovation transcend geographic boundaries. Recognizing the strong link between diversity in leadership and innovation, organizations are increasingly turning to their global cross-cultural teams to spearhead innovative initiatives.
The top five emerging and future-oriented skills in demand at GCCs are in the fields of GenAI, AI/ML, Data Analytics, Cybersecurity, Cloud Computing, and Robotics Process Automation (RPA). GCCs are committed to talent development, prioritizing the advancement of these high-demand skills, underscoring a commitment to sustained growth. Ongoing upskilling and reskilling programs are in place to adapt to changing industry needs, fostering an innovative and agile organizational culture.
The ANSR report highlights India’s anticipation of a robust 7% GDP growth in FY 2024. Yet, global economic challenges have resulted in reduced salary increments, a funding winter for startups, cost control measures, and layoffs in the product and services sector. Consequently, GCCs are emerging as an attractive option for talent migration.
- Insights into real estate trends in GCCs:
Indian cities are amongst most competitive Grade A office destinations, and this complements well with other factors such as talent availability and a robust digital ecosystem. Currently, GCCs have established a significant presence in over 15 cities, with major hubs including Bangalore, Hyderabad, Delhi, Mumbai, and Pune projected to lease approximately 60–62 million square feet of office space by 2025. Additionally, Tier-2 cities such as Ahmedabad, Coimbatore, Bhubaneshwar, and Vadodara are emerging as non-metro clusters, where leasing volumes for GCCs could increase in the medium-term as more companies plan to establish their India capability centers. India with lowest rents in the region offers biggest cost savings among the peers.
40% of pan India GCC-occupied stock is LEED (Leadership in Energy and Environmental Design) certified.
“We are witnessing a transformative shift in the global GCC landscape, with a strong focus on digital capabilities such as AI/ML, Analytics, Cybersecurity, Cloud etc. driving unprecedented growth,” said Vikram Ahuja, Co-founder ANSR, and CEO Talent500. “As India continues to emerge as a powerhouse for GCCs, we are driven by our vision to empower top global businesses with our AI-driven solutions to set up, run and manage high-impact global centers. This report serves as a comprehensive guide, unveiling key trends and insights shaping the future of GCCs and their pivotal role in driving digital transformation and innovation across industries.”
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About Quarterly report: The ANSR Quarterly GCC report assesses the GCC trends with a focus on new GCC establishment and centre expansion during the study period between September 2023 and January 2024. The report also highlights the key trends, technology maturity at GCCs, and future digital investment priorities at GCCs in India. The report showcases innovative GenAI use cases from GCCs operating in different sectors. The report also provides insights on talent management and real-estate trends in the GCCs.
About ANSR: ANSR is the market leader in enabling organizations to build, manage and scale global teams through Global Capability Centers (GCCs). ANSR’s suite of end-to-end AI-enabled products and services are trusted by the world’s best companies to help them set up, manage and run their high-impact technology centers. Since its inception, ANSR has established over 110 GCCs aggregating to over 120k enterprise talent with over $2B in investment and using over 12M sq ft of workspace.
