New Delhi, July 9 (IANS). Sanjay Kaul, Group CEO and Managing Director of GIFT City, said on Thursday that the next phase of Global Capability Centers (GCC) in India will not be based only on location or tax incentives, but on a strong ecosystem. He said that with the increasing use of Artificial Intelligence (AI), strong digital infrastructure, better connectivity and a regulatory framework that promotes innovation has become more important than ever.
Speaking at a session on “The Evolving GCC Ecosystem: Key Insights” during the 2nd National GCC Business Summit organized by the Confederation of Indian Industry (CII) in the national capital, Sanjay Kaul said that with AI entering almost every industry, the need for a strong and holistic ecosystem has increased.
He said, “AI has now become a part of almost every industry. In such a situation, an ecosystem with strong connectivity and digital infrastructure is necessary. There should also be a regulatory framework where innovation is encouraged. Such facilities are available in GIFT City.”
Sanjay Kaul said that if a similar ecosystem is developed in other parts of the country, it will help the GCC region to grow faster. He said that in the future, global companies will not just look at tax incentives or location, but will give priority to places where the entire business ecosystem strengthens each other.
He said, “The next generation GCCs will not make decisions based only on location or incentives. They will look for a strong ecosystem where each system supports each other and the entire system works as a continuous chain.”
Kaul said global companies initially came to India because of the large talent pool available, but now they are also attracted by India’s growing capabilities and the broader ecosystem that supports innovation, making India a more preferred destination for global companies than ever before.
According to him, companies are now preferring locations where high-quality infrastructure, better digital connectivity, stable and transparent regulations, good lifestyle and opportunities for innovation are available, and not just tax concessions.
In this session, experts also discussed that India is now emerging as the largest GCC center in the world. He said that India is not only the center of low cost (cost arbitrage), but has now moved beyond capability-based competition (capability arbitrage) and has entered the era of ‘control arbitrage’. This means that global companies are now handing over not just operational tasks to Indian GCCs, but also responsibility for strategic decisions and enterprise transformation.
Experts said GCCs are no longer just centers for getting things done. They are rapidly turning into innovation and AI transformation hubs. As companies adopt AI-based models, GCCs will play a leading role in transforming processes across the organization, developing AI-based solutions, reskilling employees, and driving innovation across businesses globally.
–IANS
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