GICs in India: Onward and beyond – Delivering excellence

Global in-house centres (GICs; earlier known as captives) number at over 825 in India and are one of the most significant players in India’s IT-BPM industry. Export revenue from this segment has grown over 5X in the last decade from USD 3 billion in FY 2003 to USD 15.5 billion in FY2014, a CAGR of 16 per cent.

Economic impact:

  1. Employees: 530,000 nos
  2. ~7 per cent share in India’s services exports
  3. 1.1. per cent share of India’s GDP

India continues to be the most favoured nation to set up new GICs – in 2013, India had ~30 per cent share in the new centres set up globally – driven by cost arbitrage, acceptable levels of risk, talent availability; new GICs largely in newer “industry verticals” and functions (engineering services/R&D).

With growth has come increasing maturity and therefore, the GIC value proposition has undergone a tremendous change. Initially set up with a laser sharp focus on reducing costs, GICs in India are today offer both cost and value and are emerging as Centres of Excellence, driven by:

  • economic volatility, global competition increasing the need for greater cost management
  • parent firms demand identifying/attracting new business, innovation
  • newer technologies – new lines of work, greater scope of offerings
  • continued focus on cost, availability of vast talent pool and the need for global presence

Cost and value proposition:

India GIC-Cost and value propositionIt is imperative for the industry to develop high quality talent to achieve future growth – align HR with business, extend reach and impact of talent programs, leverage employee value proposition and build next-gen leadership.

Such a combination of quality talent coupled with delivery of high value added services would enable GICs in India to deliver impact that is nearly 6-8X cost arbitrage.



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