GIC’s Building Domain Expertise and Enabling Digital Transformation

The National Association of Software and Services Companies (NASSCOM) commenced the 5^th edition of its two-day GIC (Global In-House Center) Conclave on 23^rd - 24^th April, 2015 at ITC Grand Chola, Chennai. With the theme of “Digital Wave – Are You Ready?” The conclave aims at discussing the digital opportunity that exists for GICs to demonstrate their leadership role in enabling the global enterprises to manage the transition to the digitization era.

KEY HIGHLIGHTS

• Number of GICs in India: Over 100

• GICs total revenue: USD 19.4 billion

• Number of employees: 7,45,000

• Rapidly growing segment with 6X revenue growth and 5X employee growth

• Share of ER&D/SPD GICs (largest segment): 59%

• GICs with over 1000 employees: 14%

• Number of GICs by category: ER&D – 59% | Hybrids – 31% | BPM – 6% | IT – 3%

• GICs India Value Proposition: Diverse Talent People | Technology | Process | Ecosystem/Digital millennials

• Capabilities to deliver diverse Application…IT, Operations, Analytics, Product Engineering, Technology R&D

The GIC market has witnessed a double-digit growth in the last five years to reach USD 19.4 bn at a CAGR of 17%. Total employee strength of GICs has also increased at a CAGR of 14% to reach 745000. The landscape in India is diverse and dominated by over 1000 GICs. GICs today account for about a fifth of India’s exports. The player landscape is seeing an increasing number of smaller firms enter the market resulting in India emerging as the hotbed for ER&D and product development. With an estimated 300 firms, offering ER&D and product development services, particularly in emerging technologies of IoT, robotics, wearable devices, 3D printing etc., India is poised for become the focal point for GICs across the globe.

GICs are increasingly evolving and building capabilities in their centers in India to enable digital transformation of their global enterprises in a shorter period of time.

Speaking on the occasion, Mr. R Chandrashekhar, President, NASSCOM, said, “India has always been the land of opportunities and the success of the Indian IT-BPM industry is a testimony to this fact. With GICs rapidly maturing and moving up the value chain, they are all set to playing a pioneering role in providing sustained competitive advantage to their global enterprises. GICs are also being leveraged by their global enterprises to build the enterprise wide digital transformational capabilities”.

Mr Shakti Sagar, Chair of NASSCOM GIC Council said, “GICs have played a key role for the country, contributing across exports, employment, best practices and CSR initiatives. The NASSCOM GIC Council has created a vibrant ecosystem wherein GIC companies across sectors are working together to build this sector to the next level.  At this year’s conclave, we aim at identifying newer opportunities that will leverage these capabilities and position India as the hub for GICs from across the globe.”

The multiplicity of players, the ever expanding range of products and services offered and capabilities in line with emerging trends/technologies has enabled GICs to transform itself from a cost arbitrage focused support provider into a transformational partner for the global enterprises. This in turn, has seen business models evolve from cost and capacity augmentation to capacity augmentation and co-innovation centres.

With unbeatable advantages of cost competitiveness, talent availability, India remains the leading location for new GIC set-ups. At the same time, GICs along with NASSCOM are working together to build the collective capacity for the Industry such as vertical specific skill sets, building technical and business process capabilities, enabling digitally enabled middle and senior management leadership and building the spirit of intrapreneurship and innovation amongst the workforce.

GICs in India have rapidly evolved to impact the business of the global corporations and provide value beyond cost such as providing cross BU integration and localizing the product strategy. The next phase of evolution for GICs will focus on transforming itself into a global sourcing hub for all the organization’s IT and business process needs. With the primary aim of driving business value and innovation supported by high quality talent and leadership, GICs will evolve from being supporters or enablers of business to being a strategic business function.

About NASSCOM

NASSCOM® is the premier trade body and the chamber of commerce of the IT-BPM industries in India. NASSCOM is a global trade body with more than 1800 members, which include both Indian and multinational companies that have a presence in India. NASSCOM's member and associate member companies are broadly in the business of IT services, BPM, ER&D and Software products. NASSCOM’s membership base constitutes over 95% of the industry revenues in India and employs over 3.5 million professionals.