India a Preferred GCC Hub for Global Retail/CPG Companies to set up...

India a Preferred GCC Hub for Global Retail/CPG Companies to set up GCCs by 2022: NASSCOM-ANSR Report

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With industries now accelerating their digital transformation initiatives, large Retail/CPG enterprises are increasingly relying on their GCCs to successfully navigate complex nuances of their transformation journey and are one of the fastest-growing GCC segments in India. In this regard, the National Association of Software and Services Companies (NASSCOM) in association with ANSR, a global market leader in designing, establishing and operating Global Capability Centres (GCCs), released a survey report today titled’ ‘Evolution of Retail/CPG GCCs in India’. The report forecasts that 80% of the top 100 global Retail/CPG companies will consider establishing a GCC in India over the next two years.

It is estimated in the report that over 25 new GCC in Retail/CPG industry are looking at establishing GCCs in 2021 tapping onto the matured ecosystem of talent and global operating models. The insights published in this report are primarily based on the responses received from the ‘State of the Retail/CPG GCCs in India’ survey rolled out to executives across global organizations who have Global Capability Centers (GCCs).  The report shares insights on various sections in terms of Retail/CPG GCC’s evolution in India. These include their landscape overview, value proposition, operating model and what will be their strategies beyond 2020. Captured below are the few main highlights of the survey: 

  • There has been an accelerated growth in the number of GCCs set-up over the last 5 years. India is the home for the big Retail/CPG GCC brands globally and a majority of the investments are in the digital and innovation space
  • Retail/CPG companies are increasingly driving innovation from their GCCs by establishing labs and leveraging the start-up ecosystem. Bengaluru is the preferred GCC location hosting over 70% of Retail/CPG GCCs
  • India is home to GCCs for about 25% of global Retail/CPG companies and employs over 50,000 in headcount in India. With the ability to hire top-talent, GCCs are supporting efforts of global Retail / CPG companies to build a robust pool of enterprise talent
  • Companies are leveraging GCC to build digital and technology capabilities among other functions including core business and corporate support functions.
  • Over 25 new GCCs in Retail/CPG industry are looking at establishing GCCs in 2021 tapping onto the matured ecosystem of talent and global operating models 
  • Mature GCCs are focusing on disruptive technologies and innovation, while, newer GCCs are in the foundational stages and are focused on excelling in the current scope and helping their parent companies successfully navigate through the current pandemic

 Sharing his thoughts on the report launch Lalit Ahuja, Founder & CEO, ANSR said, “India accounts for a vast majority of Retail/CPG companies and their GCCs in India. The global Retail/CPG industry is in the throes of a profound transformation leading to increased adoption of disruptive platforms including digital, data/AI, automation, and cloud. Over the coming years, we expect an upward, multi-dimensional trend of increasing number of Retail/CPG GCCs ‘twinning’ the enterprise, building a pool of future global leaders, developing capabilities at scale to accelerate business transformation and driving innovation in India. The NASSCOM- ANSR survey report is a ready reckoner that GCCs in India will play a pivotal role in reimagining the future of global Retail/CPG industry.”

Debjani Ghosh, President, NASSCOM added, “It is phenomenal to see the Retail/CPG segment as one of the fastest-growing GCC segments in India. Several India-based Retail/CPG GCCs have now evolved to become the second headquarters for the host companies with functional responsibilities to own and drive critical business growth outcomes. In the next couple of years, we will witness a fundamental growth in this sector as top 100 global Retail/CPG companies will consider establishing a GCC in India to drive innovation and business transformation.”

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