India is embracing modernization at a faster rate. According to NASSCOM's recent report, India is home to the GCCs of roughly 25 per cent of global Retail/ CPG companies and employs over 50,000 people in India. Retail / CPG GCCs are emerging as a strategic driver for innovation and building new capabilities in digital and core functions. They are leveraging strategic partnerships to enable niche initiatives as well as bring scale.
The report states that Bengaluru is the preferred GCC location hosting over 70 per cent of Retail/CPG GCCs. Around 25 Retail/CPG enterprises are looking to establish new GCCs in 2021/22 tapping into the mature ecosystem of talent and global operating models.
In the last five years, an increased surge in the number of GCCs have been witnessed. The country is the home for big Retail/CPG GCC brands globally and majority of infusions are in the digital and innovation space.
Retail Becoming a Part of Enterprise
Retail/CPG GCCs are now becoming an important part of the enterprise – driving value, supporting transformation and significantly impacting business. Here are what reports state about retail GCCs presence in the prevalent Indian business ecosystem.
How Retail GCCs are Reforming
According to the report, a key rationale to set up a GCC in India is to build global distributed engineering capabilities. Other reasons include access to the global talent pool and building new business capabilities. Secondly, expense management remains a key driver for setting up a GCC in India.
The retail GCCs primarily help to transform the business. The recent report states that more than 70 per cent retail GCCs affirmed that their host companies are benefiting from the IT and business transformation efforts underway at their GCCs. Through their ability to hire top-talent, GCCs are supporting innovation and growth programs of global retail / CPG companies. Other additional benefits comprises of building new business capabilities and strategic capacity in support of the enterprise growth agenda.