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India GCC Trends Quarterly Analysis Q1CY22

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NASSCOM, in collaboration with Zinnov, is excited to launch its inaugural edition of ‘India GCC Trends Quarterly Analysis Q1CY22’ which encapsulates compelling insights and key trends shaping the GCC landscape in India for the first quarter of 2022 i.e., January-March 2022. A quarterly bulletin, the compendious publication endeavors to provide an overview of the GCC India ecosystem; underscore new GCCs in the ecosystem with granular insights on their key focus areas, verticals they are operating in, headcount as well as headquarters; and deep-dive into two industry verticals – Retail and Industrial for Q1CY22 – to capture the sectoral nuances corroborated by detailed case-studies, which render actionable insights by collating best-in-class industry practices in terms of seminal initiatives undertaken by the GCC India centers of leading organizations to attain desirable outcomes.

Notably, NASSCOM and Zinnov have formulated a flagship ‘GCC Intensity Index’ which is a multivariate assessment model intending to track and measure the performance of new GCCs and well as the expansion of existing GCCs setting up a base in India.  The Index encompasses various parameters such as GCC establishment/expansion, industry verticals, functions, tiers, headquarter locations, India presence in terms of number of locations, envisioned work profile, etc. and attempts to establish a yardstick to calibrate progress and potential of GCCs in India.

Key Findings

Key trends in Q1CY22

  • 70% of US-headquartered MNCs forayed into India to establish their India centers/GCCs
  • Rise in the number of new GCCs entailing a rating of  ‘Very High’ on the first-of-its-kind ‘GCC Intensity Index’
  • Key Focus Areas for new GCCs - Conversational AI, Cybersecurity, Machine Learning, Natural Language Processing, and Blockchain
  • Bengaluru & Hyderabad emerged as top choices with ~65% of GCCs opening their first India center in these cities. Mumbai and Pune followed next
  • More than 50% of the GCCs instituted in India hailed from Software and Internet verticals, followed by BFSI and Automotive
GCC India Snapshot

  • GCC Market Size (FY2021) – USD 35.9 Bn
  • GCC Market Size CAGR (FY15-FY20) – Growing at a healthy clip of 11.7%
  • Total Installed GCC Talent (FY2021) – 1.38 Mn+  
  • New GCCs added in Q1 2022 (Jan-Mar’22) – 20 of which 19 were in Tier-I cities and 1 in Tier- II
  • Software & Internet-focused GCCs such as Kore.ai, ReliaQuest, Abacus.AI etc. and automotive-focused GCCs like Daimler Truck and Fisker Inc are some examples of new GCCs added in Q1 2022
  • GCC Intensity Index for Q1 2022 (Jan-Mar’22) – Very High
Industry Landscape & Case Study: Retail

  • Bengaluru and NCR together house ~90% of installed R&D talent pool
  • Retail GCCs are venturing into digital technologies like AI and ML in view of consumer satisfaction
  • ER&D & IT functions constitute almost 22% and 51% of the total installed talent respectively
  • Top companies (based on GCC Headcount in India) – Target, TESCO, Lowe’s, etc.
  • New Entrants – H&M, 7 – Eleven, etc.
Industry Landscape & Case Study: Industrial

  • Bengaluru and NCR combined account for more than 50% of total installed talent pool
  • IoT is a key focus area for Industrial GCCs and is being incepted through technology labs and ecosystem engagements
  • ER&D & IT functions constitute almost 58% and 9% of the total installed talent respectively
  • Top companies (based on GCC Headcount in India) – ABB, Eaton, Schneider Electric, etc.
  • New Entrants – Aliaxis, ePropelled, etc.

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