Partners, not rivals, in delivery ecosystem

The synergistic relationship of GCCs and GSIs will continue to fuel India's technological prowess as it supports the front and back offices of companies

- NITIN BHATT ARINDAM SEN Respectively technology sector leader, & partner and GCC sector lead, EY India

THE REMARKABLE RISE of global capability centres (GCCs) over the past few years has served to brighten an otherwise lacklustre market environment for the Indian tech sector. The country's 1,750 or so GCCs account for annual revenues of $64 billion and a headcount of two million. In addition to supporting a range of routine front- and back-office functions, this workforce drives innovation, for instance, by building and infusing emerging technologies across the enterprise. According to an EY study, GCC revenues are projected to rise to $110 billion annually across 2,400 units by 2030, employing over four million professionals.

While new centres and the scaling up of existing ones account for much of the growth, another key driver has been the trend of GCCs insourcing projects that had been contracted out to global systems integrators (GSIs).

Some industry experts believe that as GCCs build tech muscle, the growth of Indian GSIs will be affected. This fear is unwarranted. GSIs and GCCs will continue to share a symbiotic relationship. In fact, their partnership will continue growing, driven by three factors: value, risk, and cost.