Atleast 96 per cent of the Global Capability Centres (GCC) leaders cited adoption and leveraging of emerging technologies as a crucial priority for achieving sustained growth, according to Nasscom-KPMG report.
Various considerations regarding emerging technologies which need to be addressed and mitigated include external considerations related to third parties, regulatory and compliance considerations and tech landscape and cyber threats. Internal considerations include quality and reliability of content, data, considerations related to governance and ethics.
Mitigation measures include rethinking the skills of the future service delivery models and governance structure; redefining the customer experience, partner ecosystem and delivery models and reimagining the value proposition, solution design, the report noted.
Srikanth Srinivasan, Vice President at Nasscom said, “Over the last few years, we have witnessed a remarkable growth of GCCs in India with several factors driving its growth. As GCCs continue their growth trajectory, moving up the maturity curve, with factors such as blurring geographic borders and technology disruptions, these centres are constantly scanning the dynamic risk landscape and adapting to successfully navigate through.”
Further, over 72 per cent of GCC leaders identified talent management as a key priority for GCCs. Key talent related considerations include talent availability, capability, and employability, attracting and retaining talent, growing need for leadership talent and maintaining cost arbitrage.
Mitigation measures to address talent related considerations include investing in future talent availability, deployability and capability, attracting and retaining top talent and cultivating a strong leadership pipeline and also understanding the nuanced narrative around cost arbitrage as GCCs are moving up the value chain and embracing complex, specialised functions, the report noted.
The report also noted that 81 per cent respondents mentioned transfer pricing as the top regulatory priority for GCCs in India. More than half of the respondents highlighted SEZ laws and STPI regulations (67 per cent) and labour laws (60 per cent) among key regulatory priorities. For the CXOs surveyed, the top 5 regulatory considerations include corporate tax especially transfer pricing, SEZ and STPI compliance, labour laws, DPDPA and FEMA.
At least 44 per cent of the interviewed stakeholders expressed the view that it is imperative to de layer concerns around concentration. Only 20 per cent of survey respondents view the concentration of GCCs in India as perceived risk.
By adopting a variety of metrics, GCCs can accurately identify critical exposures, thoroughly assess potential vulnerabilities, take proactive measures to mitigate the concerns and provide comprehensive reports to global organisations, the report noted.