The Rise of GCCs: India’s Tech Surge and the Quest for Productivity

September 23, 2024, 4:14 pm
Zinnov
Zinnov
AssistedBusinessEngineeringFirmGrowthIndustryManagementMarketServiceTechnology
Location: France, Ile-de-France, Paris
Employees: 201-500
Founded date: 2002
India is the new frontier for global tech. The country is a talent powerhouse, teeming with engineers and innovators. EPAM Systems, a digital engineering giant, is riding this wave. With 9,000 engineers in India, the company is on a growth trajectory, fueled by Global Capability Centers (GCCs). These centers are the lifeblood of EPAM’s operations, generating half of its business in the region.

GCCs are sprouting like wildflowers. In the fiscal year 2024, their numbers soared to 1,700, creating a staggering $64.6 billion in export revenue. They employ over 1.9 million people. This is not just a statistic; it’s a testament to India’s growing importance in the global tech landscape.

EPAM is not just a player; it’s a leader. The company is deeply invested in high-end engineering and cloud-native solutions. Clients are willing to pay a premium for quality. The demand is strong, but the supply is constrained. EPAM plans to expand its workforce to 10,000 by early next year and aims for 15,000 in the next couple of years. This commitment reflects the booming demand for tech talent in India.

Artificial intelligence (AI) is the secret sauce. EPAM is harnessing AI and generative AI to enhance its services. The company is training its engineers in practical AI applications. Four thousand engineers are learning the ropes of prompt engineering, while over 2,500 are mastering AI-integrated software development life cycles. This focus on upskilling is crucial in a rapidly evolving tech landscape.

The company operates in five major cities: Hyderabad, Pune, Bengaluru, Gurugram, and Chennai. But the horizon is expanding. EPAM is eyeing tier-2 cities for future growth. The strategy is opportunistic, aiming to tap into emerging talent pools.

However, the tech landscape is not without challenges. The global economy is in flux. Inflation, geopolitical tensions, and supply chain disruptions are creating a perfect storm. In this environment, productivity is paramount. A recent study by Zinnov and ProHance highlights that 53% of Global Business Services (GBS) leaders prioritize productivity enhancement for 2024.

The study reveals a pressing need for robust productivity frameworks. GBS organizations are grappling with economic instability and talent retention issues. The path to sustainable growth lies in operational efficiency. Leaders must transform data into actionable insights. This is not just a nice-to-have; it’s essential for survival.

The three-step approach to productivity is clear: visibility, interventions, and change management. First, leaders need comprehensive visibility into workforce data. Advanced analytics tools can illuminate performance metrics, helping identify bottlenecks. Second, targeted interventions are necessary. This includes optimizing resource allocation and integrating automation. Finally, effective change management is crucial. Without it, productivity initiatives can falter.

Real-world examples underscore the importance of this framework. Early-stage organizations have reported up to a 20% improvement in productivity by adopting a structured approach. This framework helps identify pain points and implement targeted solutions.

The pursuit of productivity is not just about working harder; it’s about working smarter. GBS leaders must set realistic targets and key performance indicators (KPIs). The Zinnov-ProHance approach aims to move 19% of employees into high productivity zones within six months. This is not just a goal; it’s a game changer.

The landscape of enterprise productivity is complex. Technologies like generative AI, robotic process automation (RPA), and process discovery are reshaping the way organizations operate. However, the impact of these technologies on human capital remains murky. ProHance offers insights into work patterns, helping organizations optimize their investments in talent.

The study concludes that embracing a productivity framework is essential for GBS leaders. This framework should encompass advanced analytics, targeted interventions, and strategic change management. It’s a roadmap for navigating the complexities of the current business environment.

In conclusion, India is at the forefront of a tech revolution. EPAM Systems is capitalizing on this momentum, leveraging GCCs and AI to drive growth. Meanwhile, GBS leaders are prioritizing productivity to weather economic storms. The future is bright, but it requires a strategic approach. The combination of talent, technology, and productivity frameworks will shape the next chapter in India’s tech story.

As the world watches, India is not just participating in the global tech race; it’s leading the charge. The journey is just beginning, and the potential is limitless.