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GICs: Looking at new frontiers

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In 2015, the players in India, which now number more than 1000, will remain focused on the Digital roadmap and ready themselves to address the large Digital opportunity.

Going forward, GICs will continue to:

Provide leadership in Digital Transformation by partnering in the global digitization strategy of their international enterprises
Deliver business impact to the global enterprises, and build capacities to provide an omni-channel customer experience
Build capacities for Digitization, by leveraging the local start-up eco-system, spurring the corporate acceleration program with start-ups, and augmenting product development
Establish a Big Data Laboratory to provide Analytics

NASSCOM discussed several of these issues at its 5th two-day, GIC Conclave, held in Chennai on April 23-24, 2015. The theme of the conference was 'Digital Wave-Are You Ready?' and generated great discussion and debate on the subject among the participants.

Fast Facts
The GIC landscape
The GIC market has been experiencing double-digit growth in the last five years and is now a USD 19.4 billion industry
GICs employ more than 74,500, increasing their employee strength at a CAGR of 14 percent
There are over 1,000 GICs in India today that account for a fifth of India's exports
There has been a growth in the number of smaller firms, that have made India the hotbed for ER&D and product development companies
There are around 300 firms offering ER&D and product development services, particularly in emerging technologies of IoT, robotics, wearable devices, 3D printing etc.
India is poised to become the GIC hub of the world

Global In-House Centers, the erstwhile 'Captives' of the Indian IT-BPM industry, are in the process of reinventing themselves, in order to maintain and enhance their relevance to their parent companies.

Several GICs based out of India are now playing a leadership role in helping their global enterprises manage their transition to the Digitization era. They are enabling digitization for their parent firms in six areas including customer targeting and engagement, supply chain optimization, risk management, and digital products and services.

They are evolving and building the domain capabilities and competencies of their India centers to help their overseas parent companies to transform into Digital organizations.

As they have rapidly evolved in India, GICs have gone beyond providing just a cost benefit. They now offer cross BU integration and localize the product strategy, and have emerged as strategic business partners rather than just supporters of the business.

The GIC landscape in India is now showcasing the following trends:

A multiplicity of players with an ever-expanding range of products and services that are in tune with prevailing global business and technology trends
A deviation from the cost arbitrage model of business to a support provider model where the GICs are trans-formational partners for global enterprises
A change in business models from cost and capacity augmentation to capacity augmentation and co-innovation centers
Unbeatable advantages of cost competitiveness, diverse talent availability, IP creation competencies, capabilities to deliver different applications in IT, Operations, Analytics, Product Engineering Technology R&D
A new mandate of building and running a Center of Excellence across markets (lines of business, geo), competency (technical, domain) and strategy (tactical, futuristic)
These factors are making India a leading location for new GIC set-ups.

NASSCOM's contribution

NASSCOM has been actively focusing on GICs, and addresses this segment through its GIC Council, which has the following agenda

To create a vibrant eco-system that takes the GIC industry to the next level
To explore and identify new opportunities that GICs in India can tap, while helping these companies improve their best practices and domain skills
To help the GIC industry build its collective capacity including vertical-specific skill sets and technical and business process capabilities
To foster the spirit of entrepreneurship among digitally-enabled middle and senior management and drive innovation among the workforce