By Dr. Kanishk Agrawal, Chief Technology Officer, Judge Group, India
At a critical stage in India’s economic trajectory, AI and GCCs have become two tremendous forces driving India’s future growth story as companies around the world push for digital transformation. Both will have a profound impact on global business operations, technology and innovation, and change the way industries operate.
India’s Transition from a Service Centre to an Innovation Centre
For many years, India has been considered the world’s back office and IT services capital. However, the perception about India is evolving. Organisations are now not just interested in using India as an alternative to low-cost labour, but are also using India’s abundant talent, technological know-how, and innovation capabilities to enhance their business value proposition. The expansion of AI technology across sectors such as healthcare, financial services, manufacturing, retail and transportation is a clear indication of this change. Professional talent from India has moved beyond just supporting operational tasks by building complex AI systems and creating machine learning algorithms and contributing to innovative global products.
Entering into the Era of GCCs as Growth Engines
GCCs have gone through a tremendous evolution. Historically, GCCs focused primarily on administrative and service functions; today, GCCs have become leading centres of excellence that support business strategy, product development, research and innovation. Many global companies have established or expanded their GCCs in India, which are now responsible for leading critical global functions such as developing AI, cybersecurity, cloud-based engineering, data analysis and digital transformation projects. Furthermore, the majority of today’s GCCs are not simply completing assigned tasks but rather providing value and shaping global business outcomes.
AI: Multiplier of Productivity
The impact of Artificial Intelligence on every industry is unprecedented. AI has improved productivity, decision making, and provided new business models that allow businesses to operate more efficiently. By automating mundane tasks and providing predictive data analytics, companies can be flexible in their operations. For India, AI allows companies to bypass the limits of traditional growth. Companies are able to grow faster, offer better customer experiences, streamline supply chains, and develop entirely new revenue sources.
Further, through innovation driven by AI, India will be a more competitive player in the global digital economy. Importantly, AI is not ‘taking’ jobs from humans, it is ‘supplementing’ jobs that humans currently perform. Future job roles will have combinations of human skillsets and AI skillsets; there will be a growing demand for new skillsets and new job titles, across industries, as a result of the increased use of AI.
The AI and GCC Synergies
Combining GCCs with AI is a very powerful engine for growth. GCCs provide the skilled workforce, the technology, and the International exposure required to build and deploy AI solutions to the market at scale.
Defining India’s Next Growth Chapter
With global businesses revising their operating models and utilising AI for transformational expectations for the future, India has a unique opportunity to become a world leader in the area of innovation. The combination of an extremely young population, a large and growing digital ecosystem, and a well-established GCC structure provides an excellent base for continued economic growth. In the next 10 years, AI and GCCs will both be facilitators of India’s growth; together they will be the force of transformation of India into a global centre of technology, innovation, and creator of Enterprise Value.