The future generation of global capability centers (GCCs) will prioritize the strength of the ecosystem they operate in over mere location or incentives, according to Sanjay Kaul, Group CEO and Managing Director of GIFT City. Kaul emphasized the importance of robust digital infrastructure and innovation-friendly regulatory frameworks in the era of widespread adoption of artificial intelligence (AI) across industries. Speaking at the National CII GCC Business Summit, Kaul highlighted the need for a conducive ecosystem that fosters innovation, supported by a regulatory framework that enables it to thrive.
Kaul suggested that similar ecosystems across the country would facilitate the growth of GCCs, emphasizing that upcoming GCCs would prefer destinations offering integrated capabilities rather than just fiscal incentives. He stressed that the future of GCCs would be shaped by a comprehensive ecosystem where different components complement each other, moving beyond traditional locational factors and incentives.
Highlighting India’s attractiveness for global enterprises, Kaul mentioned that companies are now drawn to the country not only for its vast talent pool but also for its expanding capabilities and supportive ecosystem for innovation. He noted a shift towards prioritizing locations that provide quality infrastructure, digital connectivity, stable regulations, high living standards, and innovation opportunities over standalone incentives.
The session at the National CII GCC Business Summit also discussed India’s evolution as a prominent GCC destination, transitioning from cost arbitrage to capability arbitrage. Speakers acknowledged India’s advancement towards “control arbitrage,” where global companies are entrusting Indian GCCs with strategic decision-making and enterprise-wide transformations.
