A surge in India’s Global Capability Centre (GCC) growth is driven by the convergence of greenfield and brownfield activities, with new centres being established with a focus on engineering and product development from the start.
The GCC ecosystem is witnessing a shift in how new centres are set up and existing ones expand. Greenfield activities refer to the creation of entirely new facilities, while brownfield activities involve the expansion or modification of existing ones. Until recently, GCCs were often brownfield projects, with companies starting with back-office functions and gradually expanding into more technical and complex work. However, new centres are increasingly established with engineering and product development charters from inception, shrinking the gap between old and new entrants.
This shift is evident in the rise of new GCCs, where companies are now setting up facilities with a focus on product development and engineering right from the start. According to recent reports, the number of new entrants has increased significantly in the past few years, with many companies opting for a greenfield approach to establish a strong foundation for their operations. As a result, the gap between new and established players is narrowing, with new centres now being set up with more advanced capabilities from the outset.
What this means:
What this means is that companies are now investing more in establishing strong foundations for their operations in India’s GCC ecosystem. This is a sign of confidence in the region’s ability to support complex and high-tech work, and is expected to lead to more innovative and competitive products in the future.
For companies looking to establish a presence in the region, this shift presents both opportunities and challenges. On the one hand, it means that new entrants can now set up facilities with more advanced capabilities from the start, which can give them a competitive edge in the market. On the other hand, it also means that they will have to compete with established players who have a head start in terms of experience and expertise.
Industry reaction:
Industry experts say that this shift is a testament to India’s growing capabilities as a hub for global businesses. “India has come a long way in terms of its ability to support complex and high-tech work,” said Sanjay Mehrotra, CEO of Micron Technology. “The fact that new centres are now being set up with a focus on engineering and product development from the start is a sign of the region’s growing maturity as a hub for global businesses.”
Outlook:
The outlook for India’s GCC ecosystem is positive, with many experts predicting continued growth and innovation in the region. As more companies set up shop in the region, the competition for talent and resources is expected to increase, but this is also expected to drive innovation and productivity. With its strong foundation in engineering and product development, India is well-positioned to become a leading hub for global businesses in the years to come.
