Engineering innovation has been saved
India’s opportunity to emerge as the world’s engine room
Over the years, the number of global organisations choosing India to set up their Global Capability Centres (GCCs) has witnessed an exponential rise. At present, India hosts GCCs of approximately 1,300 global organisations, largely driven and sustained by the country’s success as a global engine room enabled by the presence of a large talent pool. While GCCs were originally set up for wage and cost arbitrage of their parent organisations, over the years, they have grown to provide significant value beyond those parameters. Today, GCCs are at the centre of their parent organisation’s innovation and research initiatives, with a growing focus on tech-led differentiation.
This shift has borne multi-faceted benefits not just for parent organisations but also for India. First, in India’s journey towards digitalisation, GCCs have provided a considerable push in skilling and developing a high-quality and tech-savvy workforce. Further, the sector has acted as a channel of support for India’s social and environmental objectives. GCCs spend around US$100 million on CSR, of which, 40 percent is utilised for educational initiatives, and save between 190 and 200K tonnes of GHG emissions through green initiatives. The sector makes a considerable and holistic impact across economic, human capital, innovation, social, and environmental dimensions of India. Currently, the sector contributes around US$103 billion to India in direct, indirect, and induced output, amounting to around one percent of the country’s GDP. Additionally, GCCs bring forth investment opportunities, with global parent organisations investing around US$1.5 billion in India while directly contributing about US$15 billion to start-up revenue annually.
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