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Why UK Companies are Bullish about their GCCs in India

The United Kingdom and India have a long history of economic relations, with the UK being one of the largest investors in India. In recent years, this relationship has only grown stronger, with many UK companies expressing a bullish sentiment towards their GCCs (Global Capability Centers) in India. So, what is driving this trend? In this blog post, we will explore the reasons why UK companies are optimistic about their GCCs in India and the latest developments in this area.

The Rise of GCCs in India

1. What are GCCs and why are they popular with UK companies?

Global Capability Centers, also known as Global In-house Centers (GICs), are centers set up by companies in a foreign country to leverage the talent pool, cost benefits, and strategic advantages of that location. India has emerged as a leading destination for GCCs due to its large pool of skilled professionals, cost-competitive environment, and favorable business policies.

UK companies have been quick to recognize the benefits of setting up GCCs in India. They can tap into the vast talent pool of engineers, data scientists, and other professionals, at a fraction of the cost of their home country. This not only helps them to reduce operational costs but also gives them access to a diverse set of skills and expertise.

2. How has the UK-India relationship contributed to the growth of GCCs?

The UK and India have a strong historical, cultural, and economic bond. This relationship has only strengthened in recent years, with UK-India trade reaching £24.4 billion in 2019. The UK is also one of the top investors in India, with investments in sectors such as IT, healthcare, and infrastructure. This has created a favorable environment for UK companies to set up GCCs in India and leverage the country’s growing economy and skilled workforce.

Why UK Companies are Optimistic about their GCCs in India

1. Cost Savings

One of the major reasons why UK companies are bullish about their GCCs in India is cost savings. The cost of setting up and operating a GCC in India is significantly lower compared to the UK, with lower salaries and operational expenses. This allows UK companies to focus on their core business while reducing their overall costs.

2. Access to a Diverse Talent Pool

India has a large and diverse pool of skilled professionals, with expertise in various domains such as IT, finance, engineering, and more. This gives UK companies a competitive advantage by providing access to a wide range of skills and knowledge. Additionally, the Indian education system focuses on producing a workforce that is well-equipped to handle global business needs, making it an ideal location for GCCs.

3. Strategic Location

India’s location has also played a crucial role in attracting UK companies to set up their GCCs. India is strategically located between Europe and the Asia-Pacific region, making it an ideal base for companies to serve their global clients. Additionally, India’s time zone aligns with many European countries, making it convenient for UK companies to conduct business.

The Latest Developments in UK GCCs in India

1. Expansion of Existing GCCs

Many UK companies with existing GCCs in India are expanding their operations and hiring more employees. For example, British bank Standard Chartered plans to double its workforce in India to 24,000 by 2023. This growth is a testament to the success of their GCC in India and the confidence they have in the country’s business environment.

2. New Entrants in the Indian Market

The trend of setting up GCCs in India is not limited to established UK companies. Many new entrants in the Indian market are also opting for this model. In 2020, UK-based insurance company Aviva set up its GCC in Pune, India, to support its global operations. This further highlights the increasing interest of UK companies in India’s GCC model.

3. Collaborations and Partnerships

UK companies are also exploring collaborations and partnerships with Indian GCCs to leverage each other’s strengths. In 2020, telecom giant Vodafone partnered with Tech Mahindra to set up a new GCC in Pune to support its global operations. Such partnerships not only benefit the involved companies but also contribute to the growth and development of the Indian economy.

Conclusion

The relationship between the UK and India continues to thrive, with UK companies showing a bullish sentiment towards their GCCs in India. The cost savings, access to a diverse talent pool, and strategic location are some of the key factors driving this trend. With the increasing interest of UK companies in the Indian market and the development of new GCCs, this trend is expected to continue in the future.

Think About It

Have you ever wondered how the collaboration between UK companies and Indian GCCs can contribute to the growth of both economies?

Key Takeaways

• UK companies are bullish about their GCCs in India due to cost savings, access to a diverse talent pool, and strategic location.
• The UK-India relationship and favorable business policies have contributed to the growth of GCCs in India.
• The latest developments include the expansion of existing GCCs, new entrants in the Indian market, and collaborations and partnerships.

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