LatentView Analytics reposted this
Once viewed as cost-efficient back offices, India’s Global Capability Centres (GCCs) are now leading cutting-edge AI-driven R&D, product engineering, and digital transformation. A Zinnov report notes that 40–50% of India-based GCCs are now focused on R&D, AI, analytics, and product innovation—developing solutions that were once the domain of global HQs. “The conversation has moved beyond operational efficiency to delivering strategic impact… making innovation non-negotiable,” said Ayushi Jain, GCC head at LatentView Analytics. From Mercedes-Benz AG’s GenAI model predicting vehicle paint needs to Walmart Global Tech India’s AI-powered retail optimisation, these centres are building products and enabling topline growth. Over 185 GCCs have set up AI/ML centres of excellence, with LatentView helping companies identify “low-hanging fruit” to fund future innovation. “It’s about improving operational efficiency first, then using resources to fuel innovation,” said Krishnan Venkata, Chief Client Officer at LatentView. Tier-2 cities like Indore, Mysuru, and Bhubaneswar are joining Bengaluru as GCC hubs, with operating costs 40–60% lower and attrition rates 30–40% lower. But scaling in newer regions, attracting top talent, and shifting from execution to strategic partnership remain challenges. “Many GCCs still function as execution arms rather than strategic partners,” said Rajan Sethuraman, CEO of LatentView Analytics. The future, he added, lies in fostering integration, experimentation, and domain-specific AI expertise to deliver measurable business outcomes. Read More- https://lnkd.in/gUMWcdmY
Indian GCC would create more impact on the Global IT Market place, definitely this won't be as just development center alone. This would help the global customers like BFSI, Healthcare, Telecom, Retail and Others immensely. Which would also enable the customers to run their business in a Smooth and Cost effective manner from offshore, because GCC would take care of A-Z right from the R&D, Innovations, Solutions, Deliveries, Data Centers, Networks, Infrastructures, AI/GenAI & Cloud Migrations, Risk & Cyber Securities, CIO Organizations, Talent Pool managements and executions.
This is spot on! The real shift for India’s GCCs will happen when innovation here shapes global products, not just local operations. Moving from cost efficiency to measurable business outcomes is key. In my experience, empowering teams to actively co-create with global HQs! rather than just execute, unlocks strategic impact.
Insightful
India’s GCCs are transforming into vibrant nerve centers of innovation, harnessing the power of AI and cutting-edge digital prowess to revolutionize global R&D landscapes. Once mere operational hubs, these strategic enclaves now spearhead groundbreaking AI-driven solutions, unveiling paint prediction models at Mercedes-Benz and retail optimization at Walmart; thus seamlessly blending technological artistry with inventive mastery. As Tier-2 cities emerge as cost-effective, talent-rich frontiers, the true alchemy lies in orchestrating synergy fusing operational excellence with visionary experimentation to craft measurable, transformative business outcomes. This evolution underscores a metamorphosis from traditional back offices to dynamic digital forge fires, igniting the future of global innovation.
Insightful piece! I see this shift firsthand GCCs are no longer just about cost efficiency. They’re becoming hubs for innovation, digital transformation, and strategic value creation. The focus is now on building capabilities in GenAI, data, and customer centric design closer to business outcomes than ever before
Sustainable AI Innovator | Research, Strategy, Planning and Execution | Ex- CTO | out of rat race
6dFocused on hype instead of real impacts.