How GCCs in India Are Shaping the Future of Global Technology: A Conversation with KPMG’s Shalini Pillay

In an interview, Shalini Pillay, India Leader – Global Capability Centres, KPMG in India, discussed the pivotal role of Global Capability Centers (GCCs) in India in shaping global technology. She emphasized GCCs’ focus on functional expertise, digital advancement, and integration of AI/ML and blockchain. Despite challenges like talent management and regulations, emerging trends highlight seamless global expansion, agile workforce models, and a strong emphasis on digital trust and innovation.

Can you elaborate on the specific ways in which GCCs are strategizing and customizing their offerings for the Indian Market ?

I would like to clarify that GCCs typically do not service the India market and customers in India directly. They are meant to be global capability centers for the global organisation.

Having said that, GCCs are building deep functional capabilities and establishing deep centers of excellence (CoEs) across various functional areas including Product Development, Marketing and Sales and towards enhancing the ultimate customer experience. In that context, GCCs are innovating to enable the global organisation to service various markets better, hence driving topline impact – this may also include the Indian market.

Riding on the global wave, how are India’s GCCs reshaping global technology ?

Over the past few years, we have witnessed an increasing trend of global technology hubs being established in India. GCCs are enabling the organization to enhance the digital quotient across the business value chain, anchoring CoEs for the ERP and other core technology platforms, building deep capabilities in new emerging tech areas like AI/ML, blockchain, Cloud capabilities, Automation, Tech transformation and Cyber capabilities too. Through partnering with the startup ecosystem, GCCs are also innovating to solve global business challenges.

In summary, as the tech nerve centers for many global organisations GCCs are beginning to influence and enhance the adoption of technology globally.

We are now seeing a rising trend among GCCs in India, wherein we are witnessing, a notable shift in their hiring patterns, with an increasing emphasis on recruiting talent from a diverse range of backgrounds. Could you elucidate a bit in detail on the talent aspect?

GCCs are increasing collaborating with the ecosystem to build agile operating models for the future. This also includes embracing new, innovative workforce models which allow GCCs to leverage the talent in a manner that best meets the evolving objectives and requirements.

Graph from KPMG In India – Nasscom paper titled – “GCCs in India: Building resilience for sustainable growth”  

What are some of the challenges and considerations that GCCs need to look at as they look to move up the value chain?

Along with NASSCOM, we recently published a brief paper which focused on some of the emerging risks and considerations that GCCs need to navigate as they continue to move up the maturity curve.

In summary:

Talent management:  While it is the most significant opportunity before GCCs, one will need to plan towards addressing concerns of availability, employability, and cost from a perspective of a future sustainable supply of talent. Also, addressing the growing demand on leadership talent as GCCs move up the maturity curve will be an imperative.

Emerging tech adoption: Which needs to factor several factors e.g., strategic clarity and quantifying the ROI, obtaining leadership buy-in, selecting appropriate technological solutions, implementing robust governance, staying updated with regulatory changes and hence ensuring the success of technology adoption.

Regulatory navigation: given the many regulatory and compliance requirements, important to proactively adopt comprehensive frameworks to navigate through smoothly.

De-layering concentration concerns: need to define and evaluate the perceived concentration risk, using a more nuanced approach beyond the headcount as a yardstick, and through understanding the exposures in a more nuanced manner.

Looking ahead, please elaborate on some of the emerging trends in the GCC space that we are seeing?

As the GCC model continues to evolve, some trends that continue to drive the next avatar of GCCs include:

• The changing strategic narrative, governance and empowerment from Global- which will see the GCC model morph into a seamless extension of the global enterprise
• Focus on solving global business problems, as robust solution centers
• Enabling global transformation given end to end visibility of the business value chain, and deep technology capabilities established.
• Continued hybrid operating models, through collaborating with ecosystem partners
• Agile workforce models being adopted to ready for the future of workforce
• Innovation through embracing new technologies
• Data at the core , driving impact at another scale
• Focus on Digital trust, further bolstering the resilience of the model