GCCs are in-house technology centres of companies that are traditionally clients of Indian IT services firms.
Employers range from 50 to 200 workers. Some wish to develop specialized software platforms and products in India. Others concentrate on specific requirements for their parent businesses. Before finally expanding their activities, some others wish to test the GCC landscape in the nation.
The companies mentioned above did not respond to Media queries.
“GCCs have now become size-agnostic,” said Lalit Ahuja, founder and chief executive of Bengaluru-based ANSR, which sets up GCCs for companies in India, in a conversation with Media earlier this month. “The concept of micro and nano (GCCs) started years back and is becoming mainstream in the industry.”
Ahuja added that companies can even have one-person GCCs as their size is not important anymore. “I think covid has changed that whole conversation around requirement of size to justify the existence of a GCC,” said Ahuja, adding that there are 200 GCCs in India with less than 100 employees. “We will next year, as an example, do 50 GCCs that will be sub-100 (people).”
Although that is a small portion of the 1,700 GCCs that employed over 1.6 million people nationwide in FY24, data from t he trend of nano-GCCs is here to stay and will only pick up speed, according to experts from the IT industry group Nasscom.
“These specialist nano GCCs in sectors such as semiconductors, biotechnology, automotive, telecom and software may not hire in thousands, maybe in dozens or at best a few hundreds, but they focus on high-end tech talent to develop innovative products and platforms,” said Ramkumar Ramamoorthy, partner at Catalincs, a Chennai-based tech advisory firm.
A third executive said companies were setting up smaller GCCs as a test run. “Customers want to dip their toe in the water when they look to open a nano GCC in India,” said Aveek Mukherjee, GCC countries, such as India, employ people to do the same tasks internally at a relatively low cost.
Gloplax’s chief executive, speaking to the media on March 11.
“They (companies) look to avoid the high infrastructure costs that come with setting up a GCC and we help them start nano and then become big,” said Mukherjee,
mentioning that Gloplax is now operating about three of these GCCs and is in discussions to add others.
GCCs are internal technological hubs of businesses that have historically used Indian IT services providers. GCC countries use workers to do the same job internally in relatively cheap places like Mexico, Vietnam, and India rather than contracting out their tech work to these software service companies.
Since they outsource the work that software service providers perform for their clients, these captives pose a danger to the work of pure-play IT service providers. However, GCCs are also partnered with and assisted in setting up shop by the nation’s leading IT service providers. Known as the build-operate-transfer paradigm, they first operate these centers before eventually transferring ownership.
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