NASSCOM-Zinnov-GCCs 3.0-Final-May 2019
NASSCOM-Zinnov-GCCs 3.0-Final-May 2019
NASSCOM-Zinnov-GCCs 3.0-Final-May 2019
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Spotlight on Digital,
Partnerships, New
Delivery Models & Future
Skills
May 2019
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About Us
NASSCOM is the industry association for the IT-BPM sector in India. A not-for-profit organization funded by the
industry, its objective is to build a growth led and sustainable technology and business services sector in the country
with over 2,500 members. NASSCOM Research is the in-house research and analytics arm of NASSCOM generating
insights and driving thought leadership for today’s business leaders and entrepreneurs to strengthen India’s position as
a hub for digital technologies and innovation.
Disclaimer
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service providers disclaims all warranties as to the accuracy, completeness or adequacy of such information. NASSCOM
and its advisors & service providers shall have no liability for errors, omissions or inadequacies in the information
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anybody’s personal finances or business, they should consult a qualified professional adviser.
Use or reference of companies/third parties in the report is merely for the purpose of exemplifying the trends in the
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Foreword
As organizations across the world accelerate their pace of globalization, India continues to experience a growth of GCCs. With a
renewed focus on innovation, maturing startup eco-system, and convergence of digital technologies, India is well positioned to
continue its growth story in this space.
In the early 1990s, GCCs in India were set up merely as back-office centers focusing on operational efficiency driven by cost
arbitrage and abundant talent availability. Over the last two decades, GCCs have transitioned from being the cost-effective delivery
centers to value creators. In many ways, the evolution of GCCs has been similar to India’s growth story and changing the perception
of India as a hub for transformation.
Debjani Ghosh In the 21st century, GCCs have gained maturity evolving from being single-function to multi-function centers, local to global
President, NASSCOM governance, delivery focused to business focused. This has coincided with digital disruption changing the shape of the global
business landscape. Global organizations are rapidly adopting digital across workplaces, building new products/ services to
transform their business models. Digital transformation has been an operative word for organizations across the world. However,
companies need more in terms of vision, strategy and execution for operationalizing this transformation.
With over 1250+ GCCs and a talent pool of over ~1 million, India is uniquely placed to help MNCs navigate their digital journey. A
rapidly evolving technology startup landscape will only add to their strengths. India is already experiencing green-shoots in this
direction in the form increasing traction from APAC HQ GCCs, and unicorn startups setting-up GCCs in India.
The current edition of the NASSCOM-Zinnov report titled “GCC 3.0 - Spotlight on Digital, Partnerships, New Delivery Models and
Future Skills ” is a compilation of facts, trends, and insights on India GCC landscape, digital transformation, Ecosystem Partnerships,
Pari Natarajan Service delivery models etc. The report examines the evolution of the ecosystem, its growth drivers, and highlights the initiatives of
CEO, Zinnov GCCs, Industry bodies, and the Government.
We hope the report is useful to you and we welcome your feedback and comments at research@nasscom.in.
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Acknowledgements
We are grateful to Debjani Ghosh, President, NASSCOM for her strategic direction and support towards this report. We would like to thank KS
Vishwanathan and Paresh Degaonkar from the NASSCOM GCC team, in addition to the NASSCOM Research Team for their support and
insights provided during the course of the study.
We would like to thank the GCC leaders who have taken time to participate and offer their inputs for the study.
NASSCOM’s GCC Council also helped shape the report through their counsel and guidance. We would like to convey our thanks to them.
A special mention to Zinnov Consulting, our knowledge partner for the report.
RESEARCH TEAM
• Sangeeta Gupta
• Anand Subramaniam
• Achyuta Ghosh
• Ravikiran Komarraju
• Nirmala Balakrishnan
• Anshul Agrawal
• Diksha Nerurkar
5
Abbreviations
Acronym Abbreviation
IT Information Technology
6
Study Methodology
1 2
Digital Adoption across 8 pre-identified
GCC Landscape Analysis
technologies
Identifying GCCs set-up in India Primary Interviews with GCC • As-Is mapping of GCCs on their
and gathering insights around Leaders and Secondary research current digital adoption and area
locations, talent, work-portfolio of focus/ use-cases across 8
Zinnov and NASSCOM conducted The Analysis involved collating and
etc. technologies
interviews with relevant GCC documenting the information
Identifying digital initiatives and
stakeholders to validate and/or received through multiple channels
digital adoption across the • Understanding the current state of
GCCs understand current state and future GCCs in India in terms of talent,
focus areas of GCCs and insights Analysing and processing data to
Analysing the success stories presence, functions, autonomy
into the changing landscape. get meaningful insights/ trends
and models on collaboration, etc.
digital transformation and future
The key data sources include in- Identifying the operational and
skills
strategic focus areas of GCCs and • Recommending strategic
Insights/trends on changing house Zinnov databases and interventions required for GCCs to
insights from MNC GCCs, company way forward
service delivery models and move up the maturity curve
process transformations websites, annual reports, news
New development models, open articles, Public Domain, Press • Creating aspiration for GCCs to
innovation etc. releases, job portals etc. add more value from India
7
NASSCOM®
AGENDA
1 Executive Summary
4 Way Forward
8
GCCs 3.0: Journey from efficiency to value creation
• Select anchor functions • Predictable, hi-quality • High skill capabilities • Global products and service lines
• Multiple pilots delivery • New revenue channels ’
2. Value Delivered • Driving process change and
• Defined processes • Process efficiency • IP creation
efficiency
• Capacity augmentation
• Integral part of a globally
networked organization
3. Operating Model • Often shared services • Vertical integration • Effective matrix organization • GCC viewed as another business
location
Source: NASSCOM 9
GCCs 3.0: Pushing the envelope
~3 Unicorn GCCs ~8
A B C D E F
Digital Innovation
Hyperconverged Infrastructure
GCCs are transitioning to hyper-converged
infrastructure for supporting digital work-loads
Productized Delivery Model
GCC
GCCs are increasingly adopting Productized
models for product and application
Personas
API led development
development
API led development is reducing the time-to-
market for new age applications
University Engagements
AGENDA
1 Executive Summary
4 Way Forward
13
Proliferation of digital and a maturing technology ecosystem is propelling the growth of
GCCs in India
MNCs:
1250+ GCC Evolution in India
Source: Zinnov Research & Analysis Note: The logos displayed in the slide are only Illustrative in nature 15
Engineering Research & Development segment is leading the growth story of GCCs
in India
Key Insights
• GCC Market Size has grown 8.4% in
FY2015 FY2019E FY2019
Source: NASSCOM and Zinnov Research & Analysis 1 ER&D Market Size refers to Market Size of ER&D function of GCCs 16
India is being leveraged by Global Unicorns for platform engineering
~8 EMEA
3
On-Demand/ Local Cab Unicorns
Source: Zinnov Research & Analysis Note: The logos displayed in the slide are only Illustrative in nature 17
While North America continues to retain the largest pool of MNCs based in India, APAC
HQ’ed MNCs have experienced rapid growth
X Represents number of GCCs in the region X% Represents the % of GCCs int he region as a factor of
the installed GCC base
800-850
300-350 80-90
~70%
~20% ~10%
UK 80-90
USA 750-800
Germany 50-60 Japan 30-40
Source: Zinnov Research & Analysis *No. of MNCs may not add up to the sum of ER&D, IT and BPM GCCs as the overlapping centers are counted twice 18
APAC headquartered MNCs are continuing to explore India for digital initiatives
80-90
GCCs in India.
5 • In the last 3 years, more than 60% of the
APAC based GCCs in India are from
China
20
APAC HQ • In the last 3 years, MNCs such as Grab
Taxi, Go Jek etc. have established their
MNCS 1 global centers in Bangalore
Source: Zinnov Research & Analysis Note: The logos displayed in the slide are only Illustrative in nature 19
Bengaluru still accounts for the lion’s share of the GCC ecosystem
Pune Visakhapatnam
Kolkata
12% 12% Cities like Pune and Chennai are
Hyderabad
dominated by their automotive
Mumbai domain expertise
13% 12%
12% 11%
Chennai
Bengaluru
10% 9% Hyderabad has witnessed an uptick in
34% 37% terms of new GCC set up
Coimbatore Primary Locations
Trivandrum
% of GCCs % of Installed GCC Talent Emerging Locations
Source: Zinnov Research & Analysis *No. of GCCs may not add up to the sum of ER&D, IT and BPM GCCs as the overlapping centers are counted twice 20
Hyderabad is emerging as India’s Hi-tech hub after Bangalore
450-
500 70-85 60-70 60-70 60-70 50-65 50-60
130-
50-60 35-45 35-45 25-35 18-25 15-25
150
No of
MNCs Talent Employed
Note: *Others include: Biotech, Healthcare, Energy & Utilities, Retail, Travel & Hospitality etc.
IT
18%
• As MNCs across the verticals shift to
SI
57.0% cloud infrastructure, emphasis on
ADM, IMS is on a rise.
70.0% IMS 19%
SPD
• India’s role in global engineering is
demonstrated through large ADM
and SPD work-loads
Value Arbitrage
“We are building know-how and hope to be
Tier-II cities offer value-for-buck for setting up GCCs. In addition, the global test factory for Allianz”, Ashish
low attrition rates in these cities make them attractive hot spots.
Patel, Head of Allianz India operations,
Thiruvananthapuram
Maturing local ecosystem
Government Support
State Governments (Kerala, Gujarat etc.) are proactively engaging Lexmark through its Kolkata center is
with global companies and start-ups to create a positive vibe for the focussing on connecting unstructured print
development of local ecosystem. and digital information for its global
customers
Source: Zinnov Research & Analysis Note: The logos displayed in the slide are only Illustrative in nature 24
…Ahmedabad, Thiruvananthapuram, Vadodara, Coimbatore and Kolkata are among
the emerging locations for GCCs
Kolkata
Vadodara
Coimbatore is graining prominence among
Vadodara has emerged as a key Tier-II location for the Tier-2 cities for varied Industry verticals
MNCs to establish their R&D centers in verticals Coimbatore due to low cost of operations and improving
such as Chemicals, Industrial and Software & ease of business
Internet verticals
AGENDA
1 Executive Summary
1 Digital Transformation
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GCC 3.0- Focus on digital transformation, ecosystem partnerships, delivery model
transformation and building future skills
GCCs are adopting a hybrid approach to re-skill GCCs are upping the Innovation agenda by
and acquire niche skills building new age technology CoEs around
AI/ML, Cloud, IoT etc
Digital Innovation
Digital Skills
Emergence
GCCs are increasingly leveraging India for API led API led development is reducing the time-to-
of Global development
Multi Function Shared Services centers Business market for new age applications
Services
University Startup
Engagements Partnerships Corporate- Startup engagement through
GCCs are leveraging University Partnerships for accelerators, co-creation and vendor
open research collaborations engagements are on the rise
AGENDA
1 Executive Summary
1 Digital Transformation
28
Artificial Intelligence, Machine Learning, Internet of Things, Analytics and Cloud computing
are key digital focus areas for GCCs in India (1/2) Digital Innovation
Semiconductors
Automotive
Consumer Electronics
Industrial
Telecom and Networking
Retail BFSI
Transportation
65% 55%
AI/ML Cyber Security
55% 75%
IoT RPA
85% 80%
Enterprise
Data Analytics
Mobility
80% 5%
Cloud Blockchain
X% Represents the # GCCs deploying the respective technology stack for incubating/maintenance/ upgrading a product/platform/application across software project lifecycle
Source: Zinnov Research & Analysis *The analysis is based on insights gathered across 100 GCCs 30
Digital technology adoption happening across various industry verticals
Digital Innovation
Digital Transformation
Data
Analytics
IoT
Cloud Faurecia Improves Parts Traceability with the
Internet of Things. By implementing the IoT
Gateway as the communications medium
Cyber between PLCs on the plant floor and IJ Core,
Security Faurecia is able to provide customers with the
product traceability they require
RPA
Data Analytics
Enterprise
Mobility Building data pipelines to efficiently and reliably
move data across CRM and Contact center
systems and use Machine Learning and
Blockchain Visualization tools to enable democratization of
data and data driven decision making.
High Low
Increasing # of use cases adopted across different technology by different industry verticals
Software/ AI/ML, Data Analytics, Creating generic malware signatures, ML based security solutions, Customer analytics,
Internet Cloud, Enterprise Contextual extraction, Disease detection, Connectivity platforms, SaaS, PaaS, IaaS solutions
Mobility
Fraud detection, AML pattern detection, improving CX, data analytics in cash management,
BFSI AI/ML, Data Analytics, chatbots, Loan processing automation, Insurance claims processing automation, payment
RPA, Cyber Security analytics, IoT led payments, cash management analytics, treasury management
Semi
Conductors Developing new age chipsets for next-gen AI/ML solutions, smart nano- chipsets, building
Cloud, AI/ML, IoT high-end reference platform, IoT led platforms, GPU accelerated cloud containers
Telecom &
Enhancing network capability with AI/ML, improving user device interaction through AI,
Networking Cloud, IoT, AI/ML, Data Network analytics, edge computing solutions lenges, home automation products, Cloud SDN
analytics solutions
AI solutions for autonomous cars, monitoring driver behaviour, connected cars, warranty
Automotive AI/ML, IoT, Data diagnostics, demand forecasting and product mix prediction, infotainment systems,
Analytics, Cloud
Consumer Home automation using AI/ML and IoT, Marketing assistance, ML based cyber security
Electronics AI/ML, IoT solutions
Intelligent power solutions using AI, AI led video surveillance for human detection & tracking,
Industrial IoT, AI/ML predictive analytics solutions for control systems, IoT led solutions for smart cities, building
infrastructure, connected engines
High
Federal Approach Hybrid Approach FEDERATED APPROACH
different teams within BUs drive digital
initiatives
Scale (Program/Initiative)
CENTRALISED APPROACH
Focus is to build a central team with top
talent and niche skills who would cater to
the larger organization needs
HYBRID APPROACH
is mix of any two or more above mentioned
Low
approaches and can be utilized according to
Low Control & Governance (Program/Initiative) a firm’s requirements/constraints
High
Ease of adoption
implementation]
implementation]
Asset tracking Supply chain intelligence physical
interaction
Performance
management Improve care
experience
Automotive Retail
Connected vehicles Key Focus Customer 360
Key Focus
Areas: Areas:
Ease of adoption
Ease of adoption
shopping
implementation]
implementation]
mobility
experience
Autonomous
transportation Become more
costumer
centric
Use-case adoption priority Use-case adoption priority
[Enterprise Investment | Talent Investment | COE investment] [Enterprise Investment | Talent Investment | COE Investment]
Source: Zinnov Research & Analysis Note: The use-cases in the slide are not exhaustive 34
Case Examples: GCCs across industry verticals developing IoT solutions
Digital Innovation- IoT
Digital Transformation
Developing and enhancing process control The IoT Industry digital focus areas in
systems, sensors and software for the India include Industry 4.0, Digital The MNC’s IoT Platform helps
Internet of Things, Services and People Supply Chain, Smart Cities, Smart companies to connect their IoT
(IoTSP). Habitats, Smart Products devices, build and host applications
and websites as well as acquire and
The smart sensors are used to monitor the Air quality monitoring is a big focus manage data.
performance, efficiency, reliability and area under Smart products portfolio in
lifespan of electric motors the GCC .
Source: Zinnov Research & Analysis Note: The case-studies in the slide are only Illustrative in nature 35
Enterprises are leveraging a wide ecosystem of RPA tools and technology players to
embrace automation Digital Digital Innovation
Innovation- RPA
Digital Transformation
Indian GCC Ecosystem driving Global RPA Adoption
Gaming GCC
RPA Test-bed
India team exploring RPA prior to
scaling of initiative globally
Source: Zinnov Research & Analysis Note: The case-studies in the slide are only Illustrative in nature 36
Case Examples: RPA applications at GCCs in India
Digital Innovation- RPA
Digital Transformation
Loan Approval Process Performance Reviews Corporate Reporting Supply Chain Data Customer Records Customer Support
Automation Automation Management Challenge: Slow processing
Challenge: Manual Challenge: Reviewing Challenge: Time consuming Challenge: Entering large Challenge: Mass Data times, multiple logins and
verification of loan requests performance of each internal weekly/monthly/ volumes of data to Windows Uploads (MDU) into screen rotation
and approvals which are employee manually quarterly reporting process application manually Salesforce manually Solution: Automation of the
time consuming Solution: Performance Solution: RPA auto- Solution: Automation of Solution: RPA automates backend processes such as
Solution: Bot picks the reviews can be given based generates reports, analyses data entry and tasks based record creation, account opening customer
customer request, starts on accurate metrics without contents, processes the on data input by entering updates and status check information tab on the
verifying the data and the need for managers to results and sends the order details in Excel for a large number of employee’s desktop or
approves the request physically monitor reports records sending a personalised
productivity email
Invoice Processing Online Job Hiring Data Ingestion Warehouse RPA KYC Process Web Scrapping
Implementation
Challenge: Manual Challenge: Manually Challenge: Manual errors Challenge: Gathering of the Challenge: KYC verification Challenge: Manual error in
compilation of PDF format submitting and monitoring and time consumption required sales reports and during account opening scrapping of data and copy/
invoices of client’s business job streams when entering data checking of area wise process done manually paste
transactions and payments Solution: RPA bots pick up manually from a large increase in sales manually Solution: Automation of Solution: Data automation
Solution: Bots download the the job applications and put number of sources Solution: Automation data collection, monitoring tool extracts only the
billing invoices of the them in various online Solution: RPA enables Anywhere platform was and enhanced due diligence relevant data according to
clients, password protect it sources and monitor automation of workflow for used to automate the entry which reduces the average quality checklist, site audits
and send mails to the responses data collation and entry of sales data and calculate handling time for account
clients from multiple sources subsequent increase in sale opening processes
over time
GCC has established a Blockchain CoE in 2015 with the vision to harness the emerging technology and build path breaking solutions
Vision
Collaborated with
Built prototypes & Santander, JPMC and
proxies Northern Trust to build Repo Obtained US patent
2015 based products 2017
2014
4
Onboard new clients using FTF Award for Best Blockchain based Products in
Blockchain Network effects Strategy No. of POCs taken to production
blockchain solution in 2018 partnership with Global Banks
Source: Zinnov Research & Analysis Note: The case-study presented in the slide is only Illustrative in nature 38
Bengaluru is emerging as not just an Indian AI/ML hub, but a global one
Digital Innovation- AI/ML
Digital Transformation
Bengaluru is the undisputed leader of the AI/ML revolution in India
• Presence of heavyweights like IBM, GE, Microsoft, Amazon, etc. has helped create an AI/ML ecosystem in the city
• IISc also has leading research on AI/ML specific to areas such as Graph Theory, Image Processing, Natural Language
Processing
• Bengaluru has the biggest talent pool of AI/ML professionals in India (>50% of all AI/ML professionals)
• 60% of highest funded AI/ML start-ups are present in Bengaluru
Faurecia, one of the world’s largest Bangalore is also the base for AI/ML
Microsoft Accelerator and Accenture Intel announced the AI Developer
automotive equipment suppliers, research across a number of
Ventures announced a partnership to Education Program that aims to train
has announced a research Industry Bodies and Corporate
help growth-stage technology B2B around 15,000 professionals on key
partnership with the Indian Institute Research arms. These include:
start-ups in India excel in national AI technologies. Intel India is
of Science (IISc). Faurecia and IISc ISRO, Raman Institute, DRDO,
and international markets. collaborating with companies like
will work together on automotive Microsoft Research, Adobe
Research, IBM Research, ABB HP, Wipro, Julia Computing, and
solutions based on Artificial Calligo Technologies in the program.
Intelligence. Research, Conduent Labs and Bell
Labs
Source: Zinnov Research & Analysis Note: The logos displayed in the slide are only Illustrative in nature 39
Case Example: Retail GCC driving Intelligent and smart solutions through its’
AI/ML CoE in India Digital Innovation- AI/ML
Digital Transformation
AI/ML CoE for driving digital transformation
The GCC’s AI/ML CoE has been • Build products spanning across all BUs for
conceptualized to create world class next-gen North American, European and Asian markets
products and platforms which can have a • Ideation and POCs for solving business
Bangalore significant impact on customers and business problems
Location
Source: Zinnov Research & Analysis Note: The case-study presented in the slide is only Illustrative in nature 40
Case Example: Global Software GCC – One of the early investors in AI and ML
talent in India Digital Innovation- AI/ML
Digital Transformation
The GCC has a computer science lab in Bengaluru working on AI, ML, theories GCC has set-up its Expanded to Bengaluru The GCC has ‘AI &
and algorithms, systems and technologies. Apart from the research lab, India is India operations in with an eye on long-term Research Group’ as one
the company’s largest R&D centre outside the U.S. Hyderabad and now it basic and applied of the four technology
is the company’s research. groups present in India.
largest R&D centre
AI / ML Applications outside U.S.
The GCC is using the following technologies for AI and ML applications in India:
“We partner in most of the new technology areas the parent MNC is engaged in”
Azure Analysis Services, Azure Machine Learning, Microsoft Power BI, Microsoft
–MD, R&D
Cortana Intelligence Suite
Education: Andhra Pradesh govt. Healthcare: The GCC applied the Agriculture: The GCC developed an
partnered with the GCC to develop concept of ML to predict the app for farmers that utilises its
an application that helped state regression rate in eye surgeries. proprietary ML tools & techniques to
education department in predicting They have partnered with Hyderabad infer insights from weather
school dropouts. Over 10,000 based LV Prasad Eye Institute for forecasting models, historical data of
schools use the solutions now. application. rainfall, and the past yield of crops.
Source: Zinnov Research & Analysis Note: The case-study presented in the slide is only Illustrative in nature
IT GCCs are helping organizations in migrating from traditional Infrastructure
to hyper converged infrastructure Hyper Converged Infrastructure
Digital Transformation
Hyper Converged
Legacy Infrastructure
Infrastructure
+
Network Network
• The IT teams across GCCs are migrating to HCI to reduce the capital costs and simplify the Currently, the GCC is using
maintenance POCs to identify the best fit
solution
• HCI’s can help organizations providing seamless integration in their hybrid cloud
environments as well.
Source: Zinnov Research & Analysis Note: The case-studies/logos in the slide are only Illustrative in nature 42
Case Examples: Large GCCs have started to scale their cloud initiatives in
India Hyper Converged Infrastructure
Digital Transformation
Singapore based Banking GCC Global HRM Software GCC A US based Retail GCC
Largely focused on private cloud This solution enables to view Enables seamless scaling of products
owing to security concerns employee data at ease, and access and rapid feature delivery to the business
all HR-related information in teams
minutes
Global Industrial GCC A US Based IT Infra GCC Chinese Telecom & Networking
GCC
Source: Zinnov Research & Analysis Note: The case-studies in the slide are only Illustrative in nature 43
GCCs are deploying Internal API Architecture to drive customer experience
API led development
Digital Transformation
API Architecture
Key Insights
Consumers • Organizations are using re-usable building
blocks to increase agility, build scale and
improve time to market through API
Microservices architecture
UI/UX Layer Self-Serve APIs API Libraries
Foundation
• APIs are the building blocks for
interoperability and design modularity
API Gateway
API Gateway allows for easy API Management
authentication and load-balance
the usage Centralised and managed control
for monitoring, SLM, integration,
pricing and billing
API Portal
AGENDA
1 Executive Summary
1 Digital Transformation
46
GCCs are employing a variety of models to effectively engage with start-ups
in India Startup Partnerships
Ecosystem Partnerships
Corporate hosted event for Business support program Any commercial agreement Direct investments in a Acquisition of a start-up by
start-ups and developers for start-ups – could be focused on creating joint start-up from corporate in a corporate.
often in form of competition with or without equity. value. exchange for equity.
or hackathons.
Evangelize its platform and Nurture start-ups to co-innovate, co- Access new technology innovations Access new technology innovation
technology as key ingredient for create and co-develop on/with Cisco which can be integrated to core and drive digital transformation
building innovative solutions for for global markets. offering. globally
global market.
Objective
6-month program with strong-focus Pivoted to 6-month duration 4-month non-curriculum model with 3-month PoC-led inside-out
on helping start-ups generate program with upfront intensive boot inside-out mapping. Start-ups are mapping. Start-ups are selected
revenue through access to it’s camp to allow start-ups time to Selected only on assurance of PoC based on use-cases collated from
Customization customers. focus only on PoC. from Target teams. 30+ locations
India’s only and most-sought Joint GTM with 6+ start-ups in Contracts to 8+ and investment Contracts to 3+ start-ups.
Outcome growth stage program progress in 9+ startups Engaging with global start-ups.
Source: Zinnov Research & Analysis Note: The case-studies in the slide are only Illustrative in nature 48
GCCs are actively leveraging the university ecosystem through multiple models
Univ. Engagements
Ecosystem Partnerships
Value Creation
IIT Bombay - Applied BITS Pilani Practice Global MNC partners with Xerox Corp. sponsored a IBM signed an outcome
Materials Chemistry School is an educational IIM-A for consulting research project at IIT based research
Laboratory for Energy & innovation that links training Kharagpur to develop agreement with ISB
Nanoelectronics industry experience with technology in emerging Hyderabad for research
university instruction areas of mobile on mathematical modeling
applications and services techniques and social
networks
Source: Zinnov Research & Analysis Note: The case-studies in the slide are only Illustrative in nature 49
Case Examples: GCCs collaborating with universities to drive research around
digital technologies and create a pipeline of technology ready talent Univ. Engagements
Ecosystem Partnerships
BT to set-up a research center NEC will work with IITB in the field of IoT I/O Virtualization (Programming
in collaboration with IISc to among others to build solutions for smart Framework) for OS Functionality
focus on AI, Mobility and Cyber cities and Logistics & Transportation sponsored by Vmware
IISc security technologies IIT Bombay IIT Delhi
Bangalore
Will set up a co-innovation lab Robert Bosch’s center for Cyber Physical Design and Implementation of
for collaboration on applied systems at IISc focuses on IoT enabled socio- Efficient Auditing Schemes for
research projects focussed on technical systems including: Cloud Data sponsored by
IISc
Natural Language Processing • Smart Cities NetApp. The aim is to make
Bangalore
IIIT (NLP), Artificial Intelligence (AI) • IIoT cloud data secure, available and
• Air Quality Monitoring ISI Kolkata
Hyderabad and ML (Machine Learning) accessible to authorized users
• Smart Energy
Source: Zinnov Research & Analysis Note: The case-studies/logos in the slide are only Illustrative in nature 50
NASSCOM®
AGENDA
1 Executive Summary
1 Digital Transformation
51
GCCs are increasingly shifting to Product Delivery Models for quicker
time-to-market Productized Delivery
Head of Tech
Marketing
Analytics • Headcount growth prediction
Product Price Promotion Channel Impact Areas • Capacity planning and forecasting
• Budget forecasting
Source: Zinnov Research & Analysis Note: The case-study in the slide is only Illustrative in nature 53
Case Example: Expanding work portfolio of a GCC driven by India’s
ecosystem maturity Global Business Services
Bengaluru, Gurgaon
Why India’s talent is capable of handling global stakeholders and is well placed to solve
Location
India? the organization’s business problems across locations
2000+
Shared Services Current Work-portfolio
2015
Advanced Analytics
Year of Establishment
F&A IT Operations HR
AGENDA
1 Executive Summary
1 Digital Transformation
55
GCCs are witnessing a convergence of skills required across industries
Future Skills
Software & Automotive Telecom Semicon Consumer Medical Media & Industrial Heavy BFSI
Internet Elec. Devices Entertainment Engineering
The shift to a product centric approach has led to the creation of digital engineering roles that can be leveraged interchangeably across industries
Provides leadership Supports initiatives to Focus on enhancing the Analyze data to unearth Automation programs to Manages product
expertise across enhance CX through user experience during real-time insights accelerate product development projects
product lifecycles automation the product lifecycle launch process (Scrum master)
Future Skills
Future Skills
Insights
Brillo TCP/IP GE Predix • IoT will be a critical skill in the near future for automotive,
industrial manufacturing, automotive S&M software due
Beaglebone to upcoming focus on projects in connected cars,
intelligent manufacturing solutions etc
Future Skills
Insights
Future Skills
Trends in team building in emerging technologies Case in point - Automotive GCC setting up a
team for autonomous cars
The skill development roadmap for most emerging technologies is a combination of build
& buy strategies in most organizations. The decision to acquire talent from the ecosystem
or internally build capabilities is a function of the following parameters-
Majority of organizations surveyed have revealed that the bulk of the future deployment in
emerging technologies will be through in-house skill building and re-skilling initiatives.
Staffed the team with senior employees with
deep domain understanding
Hire SMEs & build teams from scratch
In the nascent stages of a technology’s adoption within a particular organization, it is a
common practice to hire Subject matter Experts(SMEs) from the ecosystem and empower
them to lead the skill building initiative in the area.
Cloud Application Developer Cloud Architect, Enterprise Architect Within the emerging technologies, borrowing talent or
staffing teams with contractual employees is extremely
rare and has been observed only in sub-skill areas
Software Developer, Tester, considered to be non-critical for the company. For
DevOps Security Engineer Automation Architect
instance - an automotive GCC employs contractual
employees to handle database management related
IoT Product Manager, IoT Architect
tasks within the larger ML & Data Science group.
IoT IoT Developer
It has been observed that organizations are heavily
inclined towards building end-to-end capabilities within
Blockchain Developer, Blockchain any emerging skill area they wish to venture into.
Blockchain -
Architect
Acquisition of talent from the eco-system for a particular
skill is generally observed only in cases where the
Mobile Developer, Android / company does not have a critical mass of SMEs within
Mobility Windows Developer Mobility Architect
the organization for the particular talent and wish to
kick-start a team leveraging the external SME.
NOTE: The above approaches for skill development are indicative in nature and may vary between different
organizations
Source: Zinnov Research & Analysis 61
NASSCOM®
AGENDA
1 Executive Summary
4 Way Forward
62
GCCs need to inculcate a value system to reap the benefits of the digital age
AGILE ENCOURAGE
APPROACH COLLABORATION
Channelize the digital engineering spends of organizations through digital CoEs to build
1| cutting edge products
Adopt microservices architecture for digital skill transformation to trickle down to the
2| bottom layer of the talent pyramid
3|
Lead platform engineering initiatives out of India increasingly targeting APAC markets
AGENDA
1 Executive Summary
4 Way Forward
65
GCCs in Software & Internet space are employing digital technologies for open innovation solving
for use-cases beyond the immediate consumption
Key Highlights
Source: Zinnov Research & Analysis Note: The logos displayed in the slide are only Illustrative in nature 66
Emergence of 5G has transformed Telecom & Networking Industry and opened up future revenue
streams
Key Highlights
Source: Zinnov Research & Analysis Note: The logos displayed in the slide are only Illustrative in nature 67
Industrial GCCs are deploying AI-ML for building intelligent solutions in the space of pattern
detection, predictive maintenance
Industrial
Key Highlights
Source: Zinnov Research & Analysis Note: The logos displayed in the slide are only Illustrative in nature 68
BFSI GICs have witnessed increased RPA adoption and greater emphasis on deploying data
analytics for Fraud detection and Cyber Security
BFSI
Key Highlights
Source: Zinnov Research & Analysis Note: The logos displayed in the slide are only Illustrative in nature 69
Digitization & Advanced Analytics/IoT is leading Automotive firms to drive advanced developments in
Autonomous Cars and Electric Vehicles domain
Automotive
Key Highlights
Consumer Electronics
Key Highlights
Semiconductor
Key Highlights
Clara: uses AI to
MNCs Talent Predictive Analytics Education Ecosystem improve the diagnosis,
detection, and
Customizable FPGAs for Collaboration on treatment of diseases.
50-60 ~25K-30K acceleration of memory, representational neural
analytics workloads, networks, machine IP Camera Reference
storage, ethernet, and learning methods, Platform with High-end
Key Locations interconnect. images for technology Processing, Imaging
IIT, Madras enabled software and Analytics
Bengaluru Hyderabad solutions and advanced Capabilities to Advance
image analysis. Security Cameras
Source: Zinnov Research & Analysis Note: The logos displayed in the slide are only Illustrative in nature 72
Bengaluru continues to be at the top of the GCC ecosystem, however infrastructure bottlenecks
have become a definite hindrance
Bengaluru
Talent: Bangalore is one of the Tier 1 cities in
India with 37% of the installed GCC talent
GCCs in Bengaluru are Enterprise Software Robert Bosch Center for Cost of living: Bangalore has higher cost of
exploring on-prem CoEs in- Cyber Physical Systems in living in comparison to Pune, Hyderabad and
collaboration with SPs to focus Fintech IISc is working on Chennai
on solutions in new age
technologies Healthcare • IoT enabled socio-technical
systems Quality of life: Bangalore ranks 3rd in terms of
5G Labs
E-commerce quality of life in comparison with other Tier 1
• Autonomous vehicles cities
Consumer Software
• ML for Robotics
Business Continuity: Positive indicators such
Major Verticals as low crime rate and lower susceptibility to
Major Companies
natural calamities ensures strong business
continuity
Software & Internet BFSI Automotive Telecom
Source: Zinnov Research & Analysis Very High High Medium Low Note: The logos displayed in the slide are only Illustrative in nature 73
The efforts of the Telangana government to ensure continued MNC investment are paying off, and
Hyderabad looks to become the second hub in India for most Hi-tech MNCs
Hyderabad
Talent: Hyderabad has 12% of the total
installed GCC Talent. The city has major
presence of Pharma and Semicon GCCs
Digital CoE T-Hub IIIT Hyderabad Quality of life: Hyderabad offers best quality
of life in India according to a recent survey by
Mercer
Source: Zinnov Research & Analysis Very High High Medium Low Note: The logos displayed in the slide are only Illustrative in nature 74
With a strong Heavy Engineering ecosystem, Pune could emerge as a strong contender for Industry
4.0 initiatives
Pune
Talent: Pune has 12% of the total installed
GCC Talent
HP has opened a digital Enterprise Software CoEP Pune has signed an Cost of living: The cost of living in Pune is
CoE in Pune to showcase MoUs with Mitsubishi comparatively low when compared to the
locally developed solutions Fintech Electric and SAS Research other Tier 1 cities of India
as a part of its’ Digital to build local market
India initiative Healthcare products using new age
technologies
Digital Labs Science & Tech Park University Collab. Quality of life: Pune is one of top two metros
in India to live and has a low crime rate
Incubation, Acceleration &
Co-working space
Source: Zinnov Research & Analysis Very High High Medium Low Note: The logos displayed in the slide are only Illustrative in nature 75
Mumbai is the hub for BFSI MNCs and is also a base for the majority of BPM talent from that vertical
Mumbai
Talent: Mumbai has 11% of the total installed
GCC talent
Source: Zinnov Research & Analysis Very High High Medium Low Note: The logos displayed in the slide are only Illustrative in nature 76
NCR has the second highest base of BPM talent and is a hub for electronics MNCs, however
drastically falling standards of living is a cause of concern
NCR
Talent: NCR has 15% of the total installed
GCC talent
Source: Zinnov Research & Analysis Very High High Medium Low Note: The logos displayed in the slide are only Illustrative in nature 77
Chennai remains a prime location for Automotive MNCs and for setting up operations and Shared
Services centers
Chennai
Talent: 9% of the total installed GCC Talent is
based out of Chennai
Cold Spray labs IITM Incubation Center IITM Research Park Quality of life: Chennai is among the safest
cities in India and is ranked fourth in quality of
life according to Mercer
Source: Zinnov Research & Analysis Very High High Medium Low Note: The logos displayed in the slide are only Illustrative in nature 78
Summary of emerging locations for GCC in India (1/2)
Universities Startups
Ahmedabad Vadodara Kolkata
• Ahmedabad scores high on Safety and Health • Vadodara has a relatively lower cost among • Kolkata fairs low in terms of safety, health
indices however, pollution and adverse weather the Tier-2 cities. and pollution indices. On the flip slide,
conditions deters the quality of life in the city • Lower real-estate prices and lack of traffic the cost of living in the city is relatively
Quality of life • Ahmedabad relatively has a low cost of living congestions makes it further attractive for low compared to major metros in the
compared to Bangalore talent migration country
• Vadodara scores high on safety and health
parameters
Coimbatore Thiruvananthapuram
Universities Startups
• Coimbatore already has a presence of multiple GCCs such as • Thiruvananthapuram has been making concerted efforts to re-
Cameron, Bosch etc. focussing on IT-BPM work-portfolio. The brand as a digital ecosystem. The city has GCCs such as Allianz,
city has a good presence of academic institutions contributing Nissan, H&R Block etc. and more companies are preferring to
Ecosystem to the availability of technology talent set-up centers in the city
• Coimbatore is improving the city infrastructure through its • Thiruvananthapuram is focussing on waste management,
smart city initiative. metro connectivity to improve its’ civic infrastructure
• Also, the city is planning to launch a metro for intra city
commuting • The city is well connected to countries in the Middle East,
City • Coimbatore has a functional international airport with direct Singapore and Sri Lanka
Infrastructure flights to Singapore, Colombo and Sharjah
• Coimbatore scores high on safety, health and climate and is • Thiruvananthapuram relatively scores well on several
taking concerted efforts in managing traffic congestion and parameters including safety, health etc.
pollution
Quality of life
APPENDIX
81
List of GCCs in India (1/11)
93