For decades, GCCs in India were largely associated with cost arbitrage and execution-heavy roles, but now that narrative is changing. Increasingly, global enterprises are turning their India centres into hubs for innovation, analytics, and strategic decision-making. Advance Auto Parts’ India Innovation Centre in Hyderabad reflects this shift from scale to strategic value creation. Established in 2020, the centre was never intended to be a conventional offshore delivery unit. Instead, it was designed as a capability-driven hub supporting multiple business functions for the North American automotive aftermarket retailer.
Srinivas Nandigam, Managing Director of the Advance Auto Parts India Innovation Centre, believes the GCC model itself is evolving, from capacity building to capability creation. “I have been in the technology industry for over 23 years, with more than a decade in the GCC ecosystem. Traditionally, most GCCs started with a cost optimisation mindset, gradually moving incremental teams offshore. But when Advance Auto Parts set up its India centre, the mandate from the beginning was to build capabilities rather than just scale headcount,” he says.
Building capabilities from day one
Unlike many GCCs that begin with technology operations and later expand, Advance Auto Parts adopted a broader approach from the outset. The India Innovation Centre was designed to support multiple enterprise functions.
“We started with technology and then expanded into finance, merchandising, and HR operations,” Nandigam explains. “Our goal was always to operate as an enterprise location rather than a conventional GCC.”
Today, the centre contributes to product engineering, data and analytics, cybersecurity, infrastructure management, financial planning and analysis, HR operations, and merchandising strategy. Much of this work directly supports the company’s North American operations, where Advance Auto Parts runs its headquarters in Raleigh, North Carolina, along with operations in Canada and a sourcing office in Taipei.
However, establishing a new capability centre in India was not without its challenges. “One of the early barriers was brand awareness,” Nandigam says. “Advance Auto Parts is a well-known brand in North America, but as a mid-sized GCC without a business presence in India, we had to build recognition within the local talent market.”
Another challenge was cultural integration. The company, founded more than 90 years ago, carries a strong organisational identity that needed to be embedded within a newly established workforce. “We are a 90-plus-year-old company with a very distinct culture. Translating that culture to a new geography requires deliberate effort and time,” he explains.
The third challenge came from the domain itself. The aftermarket auto parts retail sector is highly specialised, and the talent ecosystem in India required familiarisation with the business model. “Aftermarket auto parts retail is a niche domain. Educating the talent market about the industry was an important part of our early journey,” Nandigam says.
To address these challenges, the company invested in ecosystem partnerships, collaborating with innovation platforms such as T-Hub and working closely with academic institutions to strengthen its talent pipeline.
Why Hyderabad became the innovation hub
Choosing the right location for the centre was another strategic decision. The company evaluated multiple factors before selecting Hyderabad. “We looked at talent availability, infrastructure, global connectivity, ecosystem maturity, and cost,” Nandigam says.
Hyderabad eventually emerged as the strongest candidate across these parameters. “The city offers a strong innovation ecosystem, leading engineering colleges, and robust infrastructure. Airport connectivity was also a major factor because it supports global collaboration. In addition, the ability to attract talent from neighboring states significantly expands the talent pool,” he explains. Hyderabad’s growing reputation as a hub for innovation and GCCs further reinforced the decision.
Policy tailwinds for GCC growth
India’s evolving policy environment has also played an important role in strengthening the GCC ecosystem. According to Nandigam, government initiatives have significantly improved the ease of setting up and operating global capability centres in the country. “Policies have become increasingly welcoming. Single-window approvals, SEZ benefits, and improvements in ease of doing business have made it easier for companies to establish operations in India,” he says.
He also highlights the impact of regulatory improvements such as Safe Harbor limit increases. “These policy changes have made the overall environment much more conducive for GCC growth,” he adds.
Innovation with business impact
One of the recurring criticisms of GCCs globally is that many innovation initiatives remain confined to pilot projects that never scale. Nandigam acknowledges that experimentation is an inherent part of innovation, but he emphasises the importance of aligning innovation with measurable business outcomes. “R&D by nature has a low success rate. Not every pilot will scale, and that is expected,” he says. “The key is ensuring that innovation efforts are tied directly to business relevance and ROI.”
Several solutions developed by the India Innovation Centre illustrate this philosophy. The team has built pricing forecasting engines and inventory forecasting solutions that support retail operations. It is also experimenting with AI capabilities, including cloud-based AI and large language model initiatives. “When innovation directly addresses business problems and delivers measurable impact, scaling becomes a natural outcome,” he explains.
Decision-making beyond geography
Another indicator of the centre’s maturity is the degree of strategic involvement its leaders have within the global organisation. “We operate as one company,” Nandigam says. “Decision-making is function-based, not location-based.” This approach ensures that leadership roles in India contribute directly to global strategy and product roadmaps.
“Several leaders here hold global platform responsibilities, which means they are deeply involved in strategic decisions and long-term planning,” he points out. The talent composition at the centre reflects this shift toward higher-value roles. Nearly 30–40 percent of the workforce comprises senior-level professionals, indicating a strong focus on experience and domain expertise.
Talent strategy in a competitive market
In a highly competitive talent market, retention remains one of the biggest challenges for GCCs across India. Advance Auto Parts has approached the issue through a combination of hiring philosophy, learning opportunities, and ecosystem partnerships. “We focus on hiring individuals who are oriented toward impact,” Nandigam affirms. “People who want to build solutions and influence outcomes rather than simply execute tasks.”
The company also collaborates with academic institutions to influence curriculum development, particularly in areas related to retail and data-driven decision-making. “Our partnerships with the top tier institutions help us bridge the industry-academia gap,” he explains.
At an organisational level, the company emphasises internal mobility to help employees expand their career pathways. “Providing opportunities for horizontal movement within the organisation allows employees to broaden their exposure and build long-term careers,” Nandigam says.
This approach appears to be working. According to him, attrition levels remain at or below industry averages. “Compensation growth has remained stable in the range of 8–10 percent, which is healthy compared to industries that experience volatility. But beyond compensation, the real value proposition lies in learning opportunities, global exposure, and career progression,” he adds.
GCCs and startups: A collaborative ecosystem
Despite competing for talent, Nandigam does not see GCCs and startups as rivals. “I do not view GCCs and startups as competitors. In fact, they complement each other,” he says. According to him, professionals are motivated by different career aspirations, and both ecosystems offer unique opportunities. “Some individuals prefer the fast-paced environment of startups, while others are drawn to the scale and stability of global enterprises,” he explains.
He also informed that Advance Auto Parts also collaborates with startups and consulting firms, further strengthening its connection with the broader innovation ecosystem.
The shift from headcount to value
As AI begins to reshape enterprise operations, the role of GCCs is also undergoing a transformation. “The GCC model is shifting from volume to value,” Nandigam says.
In earlier years, success was often measured by headcount growth. Today, organisations are increasingly evaluating GCCs based on the business impact they create. “Earlier, the focus was on scaling teams. Now the emphasis is on driving measurable business outcomes and contributing to revenue,” he explains.
India’s unique combination of talent, speed, and scale positions it well for this next phase of evolution. “India offers speed, skill, and scale. Going forward, value creation will be the defining factor for GCC success,” he notes.
Data, AI, and the future of retail operations
Within Advance Auto Parts, data and analytics are already central to decision-making across several business functions. “Data analytics plays a key role in determining store locations, forecasting inventory demand, and analysing demographic trends,” Nandigam says.
The company also uses predictive models that incorporate weather patterns to anticipate fluctuations in demand. “We use weather-based demand prediction models to ensure we have the right products available at the right time,” he explains. AI further strengthens these capabilities, helping optimise sourcing strategies and improve overall customer readiness.
A measured growth path
Since its launch in 2020, the India Innovation Centre has grown steadily. Today, the centre employs around 470 professionals. “We have scaled thoughtfully over the past few years,” Nandigam says. “Going forward, we expect growth of around 10 to 15 percent next year.”
At the same time, the broader business is optimising its retail footprint in North America. “We are closing underperforming stores while opening new ones in high-potential areas,” he mentions.
For Nandigam, the journey of the India Innovation Centre reflects a broader transformation in how global enterprises view their India operations. “The narrative is changing,” he says. “GCCs are no longer just about cost optimisation. They are about capability building, innovation, and driving real business impact.”