India is the most preferred location for global shared services after Poland and Mexico, says Deloitte survey
- IBEF
- August 25, 2023
According to Deloitte's 2023 Global Shared Services and Outsourcing survey, India has emerged as the most preferred location as a Global Shared Services hub, after Poland and Mexico
The Global Capability Centres (GCC) sector already generates US$ 60 billion in revenue, and in the next four to five years, it is anticipated to reach US$ 75-80 billion. An estimated 1,900 GCCs in India are projected to generate US$ 60 billion in revenue and employ 2 million people.
India is one of the leading exporters of services in the world, according to World Trade Organisation (WTO) estimates. From 2% in 2005 to over 4% in 2022, the country's share of the global services trade has doubled. This, supported by survey data, demonstrates that shared service centres will be essential to India's efforts to improve its standing internationally and meet its US$ 400 billion services export goal for the current fiscal year.
The Deloitte analysis examined how the largest companies in the world have adapted their service delivery methods in response to tightened economic conditions and a persistent desire for remote and hybrid work. Additionally, it revealed industry-wide patterns and tactics promoting cost-effectiveness and process optimisation.
The results of the global survey showed a notable change, with global business services (GBS) businesses now offering transformational capabilities and aligning themselves closer to the C-suite. According to the report, "dedicated GBS leaders now lead over 40% of seasoned GBS firms, with Chief Financial Officers (CFOs) taking the lead in over 80% of these organisations that go beyond their defined scope." According to the survey, automation is the primary digital enabler for GBS firms and is anticipated to be a major area of focus over the next one to three years.
The survey highlighted the part GBS plays in promoting Environmental, Social, and Governance (ESG) results. As organisations place greater emphasis on ESG, GBS is actively supporting an array of ESG processes and contributing to their parent group’s net-zero aspirations. Although the adoption of ESG is generally independent of industry, most industry sectors reflect a considerable emphasis on ESG, ranging from 45-55%.
According to the report, in the years to come, firms looking to improve operational excellence, promote sustainability, generate long-term value for stakeholders, and have a bigger effect across industries will find that the integration of enabling technologies and ESG activities will be a critical differentiator.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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