The world of Global Capability Centres (GCCs) is evolving rapidly, and the recent acquisition of a majority stake in Summit Consulting Services by ANSR is a prime example of this dynamic landscape. This strategic move not only enhances ANSR’s portfolio. but also positions it to better serve mid-sized firms looking to scale.
Understanding Global Capability Centres (GCCs)
Global Capability Centres are specialized entities that multinational corporations establish to optimize operations, enhance productivity, and tap into local talent. These centres often focus on specific functions such as IT, finance, and customer support, enabling companies to streamline their processes and reduce costs.
The Rise of GCCs in India
India has emerged as a hub for GCCs, housing over 1,700 centres that collectively employ around 1.9 million individuals. This growth is fueled by the increasing demand for operational efficiency and cost-effectiveness in a post-pandemic world.
Key Statistics:
- 60% of new GCCs are being launched by mid-sized firms.
- GCCs contributed approximately $64.6 billion to India’s IT services sector in fiscal 2024.
ANSR has been at the forefront of establishing GCCs in India, having successfully set up 135 centres with investments totalling around $2 billion. The consultancy specializes in helping organizations navigate the complexities of setting up and managing these centres.
ANSR and Summit Consulting Services: A Strategic Coming Together
In a significant move, ANSR has acquired a majority stake in Bengaluru-based Summit Consulting Services for an estimated ₹45-65 crore ($5-8 million). This acquisition is not just a financial transaction; it represents a strategic alignment of two companies with a shared vision for the future of GCCs.
Why Summit Consulting?
Founded in 2020, Summit Consulting has quickly established itself as a leader in building GCCs for growth-stage, mid-sized, and private equity-backed organizations. Its innovative operational models, including Basecamp—India’s first GCC incubator at T-Hub, Hyderabad—make it a valuable addition to ANSR’s offerings.
Key Benefits of the Acquisition:
- Enhanced solutions for mid-sized GCCs.
- Access to Summit’s unique operational models.
- Continued independent operation of Summit to maintain its client relationships.
Leadership Transition
Sandeep Sharma, the founder and CEO of Summit Consulting, will join ANSR’s leadership team. This transition is expected to bring fresh perspectives and innovative strategies to ANSR’s operations, bolstering its ability to cater to mid-sized firms.
The Impact on Mid-Sized Firms
Mid-sized companies are increasingly driving the GCC boom in India. With more than 240 new facilities launched recently, these firms are recognizing the strategic value of GCCs in enhancing their competitive edge.
A Post-Pandemic Surge in GCCs
The COVID-19 pandemic has accelerated the need for businesses to adapt and innovate. Mid-sized companies are leveraging GCCs to streamline operations, reduce costs, and access a broader talent pool.
Key Statistics:
- Mid-sized firms account for 60% of all new GCCs.
- The rapid expansion reflects strong confidence among business leaders and investors.
India: The GCC Capital of the World
With 17% of global technology centres located in India, the country has solidified its position as the GCC capital of the world. The potential for growth is immense, with projections indicating an increase to 2,100-2,200 GCCs by 2030, employing between 2.5-2.8 million professionals.
According to a recent Nasscom-Zinnov report, the revenue share from GCCs is expected to rise to $99-105 billion by 2030. This growth trajectory highlights the increasing importance of GCCs in the global business landscape.
The partnership with Accenture allows ANSR to leverage advanced technologies and methodologies, enhancing its service offerings and expanding its reach in the GCC sector.
The Future of GCCs in India
As the landscape of global business continues to evolve, the role of GCCs is becoming increasingly critical. The acquisition of Summit Consulting Services by ANSR is a testament to this trend, signaling a shift towards more specialized and scalable solutions for mid-sized firms.
Key Trends to Watch
- Increased Investment: Expect more investments in GCCs as companies seek to optimize operations.
- Technological Integration: The incorporation of AI and automation will redefine operational efficiencies.
- Talent Development: Focus on upskilling and reskilling talent to meet evolving business needs.
A New Era for GCCs
The acquisition of Summit Consulting Services by ANSR marks a pivotal moment in the GCC landscape. With a focus on mid-sized firms and a commitment to innovation, this partnership is poised to drive significant growth and transformation in the industry.
As businesses navigate the complexities of the modern marketplace, GCCs will play a vital role in shaping their success. The future looks bright for ANSR, Summit Consulting, and the broader GCC ecosystem in India.
