Global Capability Centers (GCCs) are playing a crucial role in the growth and development of the start-up ecosystem in India. Leveraging their deep industry expertise, global reach, and innovation-driven approach, GCCs have become a conduit for start-ups to scale globally and solve business problems at an unprecedented level. These partnerships have a profound impact on both the GCCs and the start-ups, leading to technological advancements, business efficiencies, and significant monetary outcomes.
GCCs have established various models of engagement with start-ups, including vendor sourcing, solution validation, accelerator/incubator programs, and acquisition. Each model creates opportunities for start-ups to bring cutting-edge solutions to market, co-develop products with GCCs, and ultimately expand their capabilities. In India alone, there are over 300 sourcing transactions each year between GCCs and start-ups. Additionally, more than 40 structured accelerator/incubator programs, graduating over 350 start-ups annually, provide invaluable support to these early-stage ventures.
Through solution validation and co-development programs, GCCs help start-ups refine their offerings to solve specific pain points for both the GCCs and their parent organizations. Five co-development programs hosted by GCCs in India each year allow start-ups to work on real-world problems, leveraging data and domain expertise provided by the GCCs.
The acquisition and acqui-hire model is another impactful engagement lever, with more than 15 such transactions in 2019, providing competitive advantage, market expansion, and talent acquisition for the GCCs. Moreover, GCCs serve as a technical due diligence arm for global companies, helping identify and invest in promising start-ups. In 2019 alone, companies with GCCs in India invested over $1.5 billion in Indian start-ups, while another $8 million was allocated through accelerator/incubator programs.
GCCs also provide deep technical expertise, offering start-ups access to a “sandbox” environment where they can test and refine their products. This infrastructure access, along with customer access and market insights, helps start-ups position themselves for success in global markets. By engaging with GCCs, start-ups not only gain credibility but also have the opportunity to interact with clients and scale their business solutions on a larger stage.
GCCs continue to be a driving force in shaping the start-up ecosystem, fostering innovation, and helping start-ups mature their capabilities while making a significant economic impact.
