Insourcing: Mid-Market Centers Fuel Growth in the GCC Sector
India’s mid-market Global Capability Centres (GCCs) are witnessing remarkable growth, outpacing their counterparts by tapping into new opportunities and a diverse talent pool. According to a recent report by Nasscom-Zinnov, the country is home to over 480 mid-market GCCs, employing approximately 210,000 individuals. These centres, established by mid-sized firms with annual revenues between $100 million and $1 billion, account for 27% of all GCCs in India. The last five years alone have seen the establishment of more than 110 new facilities, representing about 35% of all new GCC units in the nation.
Significant Contributions to Enterprise Portfolios
Mid-market GCCs are playing a crucial role in driving end-to-end platform ownership within enterprise portfolios, with around 60% of this work originating from India. These centres are heavily involved in various sectors, including artificial intelligence, machine learning, cybersecurity, cloud computing, and data science. Notably, India is home to 47% of the global product management talent and 25% of the deep tech workforce dedicated to mid-market GCCs. According to Pari Natarajan, CEO and co-founder of Zinnov, private equity ownership significantly influences mid-market companies. These firms employ structured value creation strategies, making India-based GCCs a vital component of their operations. For companies lacking private equity backing, the push towards establishing centres in India often comes from board members who are operational leaders.
Geographical Distribution and Workforce Growth
The report highlights that North American firms are increasingly inclined to globalize, with India emerging as a prime destination due to its agile learning capabilities and rich talent pool. Key cities for mid-market GCCs include Bengaluru, Hyderabad, the National Capital Region (NCR), and Chennai, which collectively account for 74% of new GCC establishments. Hyderabad, in particular, has transformed into a significant talent hub over the past five years, contributing to 25% of the workforce expansion in this sector. This growth underscores the city’s importance in the landscape of mid-market GCCs.
Operational Efficiency and Talent Development
Mid-market GCCs focus on delivering specialized, high-value services while maintaining a lean operational model compared to their larger counterparts. This efficiency allows them to promote talent to leadership positions 20% faster, thanks to their streamlined structures and direct visibility to global leaders. While these centres often begin as outposts similar to larger GCCs, they tend to advance 1.2 times faster along the maturity curve. This rapid progression highlights the effectiveness of mid-market GCCs in adapting to market demands and fostering talent development within their organizations.
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