Indian Economy News

India is a preferred GCC hub and 80% of top 100 global Retail/CPG companies will set up GCCs in India by 2022: NASSCOM-ANSR Report

Large retail/CPG companies are increasingly focusing on their GCCs to successfully manage challenging complexities of their transformation journey, with industries now accelerating their digital transformation initiatives. In this regard, a survey was published by the National Association of Software and Services Companies (NASSCOM) in collaboration with ANSR, a global market leader in the design, establishment and operation of Global Capability Centres (GCCs).

The report showed that in the next two years, 80% of the top 100 global retail/CPG companies will consider setting up a GCC in India.

The report predicts that over 25 new GCCs in the retail/CPG industry are planning to set up GCCs in 2021, tapping on the established talent ecosystem and global operating models. Here is the full report online. The findings recorded in this study are focused primarily on the responses received from the 'State of the Retail/CPG GCCs in India'. In terms of Retail/CPG GCC's development in India, the study shares insights on various sections. This include their description of the environment, value proposition, operating model and what their plans after 2020 will be.

The few key highlights of the survey are mentioned below:

• Over the last 5 years, there has been an accelerated uptick in the number of GCCs set up. India is the most preferred location for the large retail/CPG GCC brands which are focusing for the investments in the digital and innovation space.
• Through developing labs and leveraging the start-up ecosystem, retail/CPG businesses are rapidly pushing creativity from their GCCs. The chosen GCC location in Bengaluru hosts over 70% of Retail/CPG GCCs
• For about 25% of global retail/CPG firms, India is home to GCCs and has over 50,000 employees in India. GCCs support the efforts of multinational retail/CPG companies to create a large pool of business talent with the opportunity to recruit top talent.
• Companies use GCC to develop digital and technical capabilities, including core business and corporate support functions, among other functions.
• In the retail/CPG industry, over 25 new GCCs are aiming to create GCCs in 2021 to tap into the established talent ecosystem and global operating models.
• Mature GCCs focus solely on new innovation and creativity, whereas young GCCs are in the basic stages and are concentrated on accomplishing in the existing scope and assisting their parent companies navigate the current pandemic effectively.

Mr. Lalit Ahuja, Founder & CEO, ANSR said, "India accounts for the majority of India's retail/CPG firms and their GCCs. The global retail/CPG industry is undergoing a significant transformation that has led to increased adoption of disruptive platforms such as digital, data/AI, automotive, etc. We expect an upward, multi-dimensional trend of growing numbers of Retail/CPG GCCs 'twinning' the organisation over the coming years, creating a pool of potential global leaders, developing ability at scale to drive market transformation and accelerating India's innovation. The NASSCOM-ANSR survey report is an estimate that India's GCCs will play a significant role in reimagining the global retail/CPG industry's future.”

Ms. Debjani Ghosh, President, NASSCOM, said, “It is remarkable to see the Retail/CPG segment as one of India's fastest-growing GCC markets. Several Retail/CPG GCCs based in India have now established to be the next second headquarters for host businesses with functional obligations to own and drive vital results for business growth. We will see a big growth in this industry in the next few years as the top 100 global retail/CPG companies will propose setting up a GCC in India to promote innovation and business transformation.”

The emergence of the COVID-19 pandemic is pushing corporations to re-think their markets and company operating models. To summarise, a vast majority of CXOs agree that the benefits of GCCs are significant and sustainable in the results of this survey study. As corporate leaders continue to push the technology horizons, organisations will be needed to tackle these challenges and create confidence among stakeholders to rapidly scale up their GCCs

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.