Pioneering the Nordic Growth Story through India’s GCC Ecosystem

THE INDIA STORY

1.0 INTRODUCTION

The Global Capability Centre (GCC) landscape in India has undergone a remarkable
transformation over the past two decades. Originally conceived as cost-saving hubs for
multinational companies, GCCs have evolved into strategic assets driving innovation,
digital transformation, and business value.

The concept of GCCs in India took root in the 1990s and through the early 2000s. The
primary driver was cost efficiency, as India offered a large pool of highly skilled and
relatively inexpensive talent compared to developed markets.

The centres established then were primarily focused on IT Services, Software
Development, and BPO. The Indian government’s supportive policies, including the
establishment of Software Technology Parks (STPs) and Special Economic Zones (SEZs),
further facilitated the growth of the GCCs.

The GCC landscape in India began to diversify and expand from the mid-2000s. Companies
started leveraging India not just for cost advantages but also for the quality and expertise
of its talent pool. The focus shifted from basic IT services to more complex and value-added
functions such as research and development (R&D), product engineering, and knowledge
process outsourcing (KPO).

The evolution continued through the 2010s, as the GCCs became integral units of their
parent organizations as the strategic hubs for delivering business outcomes that were core
to their global operations while driving innovation and digital transformation.

Through this period, GCCs in India became pivotal in driving digital initiatives, such as the
adoption of artificial intelligence (AI), machine learning (ML), big data analytics, cloud
computing, and the Internet of Things (IoT).

As we look to the future, the next phase of growth for GCCs in India promises to be even
more exciting, with new opportunities, challenges, and possibilities on the horizon, as they
expand into new domains and continue to drive innovation to solve complex business problems, improve customer experience, and drive business growth.

1.2 OVERVIEW OF THE GCC LANDSCAPE IN INDIA

1.3 KEY DRIVERS SHAPING EVOLUTION OF GCCs IN INDIA

Several industry shifts and trends have shaped the evolution of GCCs in India from
cost centres to the innovation powerhouses driving digital transformation,
business value, and economic growth:

• Increasing focus on innovation, digital transformation, and customer experience
• Integration with global operations, delivering end-to-end product development, global supply chain management, and strategic decision- making processes.
• The growing emphasis on R&D to develop new products, technologies and solutions, to solve complex customer problems
• Talent and skills development through partnerships between the industry and the academia
• The adoption of emerging technologies such as AI, ML, big data, cloud computing, and IoT

2.0 PEOPLE EQUATION’s EXPERTISE & EXPERIENCE

2.1 OUR AREAS OF EXPERTISE

2.2 OUR EXPERIENCE

3.0 PEOPLE EQUATION’s FOCUS ON THE NORDIC REGION

3.1 OUR SUCCESS IN THE NORDIC REGION

3.2 THE TALENT LANDSCAPE OF TOP 10 NORDIC GCCs IN INDIA

3.3 THE CATALYST FOR CAPABILITY-DRIVEN TRANSFORMATION

Many enterprises are pursuing transformation, with capability-led transformation
emerging as a pivotal driver of success. In this context, GCCs have become the most
preferred operating model globally, thanks to their ability to support and accelerate such
transformations. Over the past decade, India’s GCC ecosystem has matured significantly,
establishing itself as a strategic hub for global organizations.

Countries like the US and Germany have capitalized on this potential, making remarkable
progress in setting up GCCs in India. While some large and reputed Nordic companies have
started exploring this path, we believe there is considerable scope for scaling these efforts
to achieve greater impact.

At People Equation, our intent is to act as a strategic catalyst, helping a broader spectrum
of Nordic companies adopt the GCC-led operating model and unlock the full potential of
capability-driven transformation.