GenAI top priority for 70% of GCCs in India: EY

Once perceived as back offices of global, today India’s Global Capability Centers story has transformed into being innovation and research hubs. Industry data estimates show nearly 23% of the country’s IT exports come from GCCs. It is estimated to touch nearly $100 billion in revenues by 2030. The EY GCC Pulse Survey 2024 across 88 companies from diverse industries, with centres based in India and other locations including the Philippines, Malaysia, Poland, Hungary, and Mexico has shown nearly 76% of companies investing in cybersecurity enhancements, followed by GenAI at 70% and around 46% investing on process mining tools. GCCs turning into an innovation hub is supported by the survey as nearly 76% of the companies are looking at integrating GCC talent into global innovation teams.

As GenAI gains traction the survey points at companies showing interest in three areas to leverage the technology. While nearly 69% of firms saw customer experience as an area for Gen AI implementation including automated chatbots, personalized support, and sentiment analysis, 57% saw operations and the other areas where there is scope for GenAI implementation being IT and cyber security. Arindam Sen, Partner and GCC Sector Lead,r – Technology, Media & Telecommunications, EY India, points out that GCCs are now prioritising talent, digital transformation, and robust security framework as they are not only improving operational efficiency but also positioning themselves as global innovation hubs. “The next frontier for GCCs will be in integrating GenAI into their core business functions to create intelligent workflows, enhance decision-making processes, and offer more personalized customer experiences," he says.

However, issues around taxation especially transfer pricing, data protection and privacy regulations and complex compliance requirements remain a top concern for GCCS. Nearly a third of GCCs according to the survey have called for the government to simplify the compliance requirement and nearly 60 % want improvement in the infrastructure Subir Mehra, Partner and GCC Sector Leader – Financial Services, EY India, feels that even as GenAI offers huge potential for GCCs, navigating the complex tax and regulatory landscape across jurisdictions remains a critical challenge. The survey has also highlighted an increased vigil around cyber-attacks and data breaches with security intelligence and monitoring becoming an imminent need. Over 80% believe increasing cybersecurity awareness among its employees and implementation of robust cybersecurity policies and procedures is a top priority.