India GCC Trends Quarterly Analysis Q3CY2022
India GCC Trends Quarterly Analysis Q3CY2022
NASSCOM, in collaboration with Zinnov, has published ‘India GCC Trends Quarterly Analysis Q3CY2022’ which encapsulates enthralling insights and incisive trends shaping the GCC landscape in India for the third quarter of 2022 i.e., July-September 2022. Along with updates on the GCC India ecosystem, new GCCs in the ecosystem with granular insights on their key focus areas, verticals they are operating in, headcount as well as headquarters; this issue also incorporates expansion of centers for established GCCs in India, a parameter we started including in our analysis since our Q2CY2022 edition. Moreover, this edition encompasses a deep-dive of the GCC Landscape in the Health & Pharma sector by outlining detailed case-studies from the key sub-verticals, namely Healthcare, Pharmaceuticals, Medical Devices, and Biotechnology.
Additionally, the ‘GCC Intensity Index’, a multivariate assessment framework created by NASSCOM and Zinnov since the first edition, aimed at tracking and measuring the performance of new GCCs as well as the expansion of existing GCCs setting up base in India, has tapered down marginally to a rating of ‘High’ in the third quarter (July-September 2022) as compared to Q2CY2022, due to certain distinctions pertaining to variety in industry verticals, headquarter location, presence across different tiers of Indian cities, etc. as well as a slight decline in the number of new GCCs established in Q3CY2022 as compared to the previous quarter. The Index takes into account a variety of 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 endeavors to establish a yardstick to calibrate the progress and potential of GCCs in India.
- Slight decline in the number of new GCCs in Q3 2022; 15 in Tier-I cities as compared to 17 in Tier-I and 2 in Tier-II cities respectively in Q2 2022
- ~60% of the new GCCs established in India operate in all three functional areas, namely ER&D, IT, and BPM in Q3 2022
- In Q3 2022, close to 60% of the new GCCs instituted in India hail from the Software and Internet vertical
- In Q3 2022, US-headquartered MNCs accounted for ~76% of new GCCs as well as new centers of existing GCCs established in India, in comparison to 63% in Q2 2022
- Bengaluru & Hyderabad continue to be preferred locations for setting up base for new GCCs in India; Chennai also joins the list
- Established GCCs expanded in ~10 centers (7 in Tier-I and 3 in Tier-II cities) across India in Q3 2022 as compared to ~11 centers (10 in Tier-I and 1 in Tier-II cities) across India in Q2 2022; Bengaluru with 3 centers continued to be the most preferred choice for center expansion of existing GCCs in Q3 2022
- Key focus areas for new GCCs as well as the new centers of existing GCCs expanding in India in Q3 2022 include Cloud, Data Analytics, Artificial Intelligence (AI)/Machine Learning (ML), and Software Development
- GCC Market Size CAGR (FY15-FY21) – Maintaining a steady pace of ~11%
- Total No. of GCCs (as of September 2022) – 1510+
- New GCCs added in Q3 2022 (Jul-Sept’22) – 15
- New GCCs in Q3 2022: 9 operate in the Software & Internet vertical while 2 operate in the Retail segment
- Expansion of existing GCCs in Q3 2022 – 3 new centers were setup in the Software & Internet vertical; one each by Calsoft Inc, ThoughtSpot and IBM in Kolkata, Thiruvananthapuram and Gandhinagar respectively; in the Electrical & Electronics vertical, Fagor Automation and e-con Systems set up a center each in Bengaluru
- GCC Intensity Index for Q3 2022 (Jul-Sept’22) –High
- ~85% of the total GCC units are established in Bengaluru, Mumbai, NCR, and Hyderabad
- Close to 20% of the Health & Pharma GCCs have their centers in 3 or more cities
- ER&D, IT, and BPM functions constitute nearly 43%, 16%, and 41% of the total installed talent in Health & Pharma respectively
- Nearly three-quarters of the total installed talent for Health & Pharma GCCs comes from Bengaluru, Hyderabad, and Mumbai
- >55% of the total Health & Pharma GCCs in India are US- headquartered
- Top companies (based on GCC Headcount in India) - Novartis, Pfizer, Abbott, Siemens Healthineers, etc.
- New Health & Pharma Entrants in Q3 2022 –Modivcare
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