How AI-focused GCCs are challenging traditional IT services, Pg17

Key Highlights:

• India hosts 2,117 Global Capability Centers (GCCs) employing 2.36 million professionals, generating $98.4 billion in revenue in FY26.
• The GCC sector has expanded by 32% in the last five years, with over 500 new GCCs and 1,000 additional units established.
• Over 1,200 Indian GCCs possess AI and machine learning capabilities, with over 250 operating dedicated AI/ML Centers of Excellence.
• India's GCC ecosystem employs over 250,000 AI professionals, ranking second globally after the US.

Detailed Insights:

• GCCs in India have evolved from back-office support to high-value innovation and engineering hubs, driven by a large technology talent pool.
• Many GCCs are now involved in AI development, cybersecurity, chip design, cloud engineering, and enterprise transformation for parent companies.
• Only 5% of GCCs have evolved into 'transformation hubs' with CXO roles and functions like technology, engineering, and product development.
• India aims to attract more global decision-making and senior leadership roles within GCCs, moving beyond being primarily an execution base.
• Nasscom and Zinnov's report, 'The GCC Value Orbit', highlights the shift of GCCs from "delivery engines" to "enterprise nerve centers".

Key Concepts Involved:

• Global Capability Center (GCC): Offshore units of multinational corporations handling strategic functions.
• AI/ML: Artificial Intelligence and Machine Learning, technologies enabling machines to perform tasks.
• CXO Roles: Top-level executive positions within a company, such as CEO, CFO, etc.