Regulatory Compliance Vital For India’s GCCs; Transfer Pricing Tops Concerns: Report
The country is expected to have about 1,900 GCCs by 2025 with a market size of USD 60 billion
A new report sheds light on the important role of regulatory compliance for India’s Global Capability Centres (GCCs), with over 55 per cent of leaders stressing its significance for smooth operations. Topping the list of regulatory concerns are transfer pricing, followed by SEZ/STPI regulations and labour laws, according to the findings.
Recognising the importance of addressing these regulatory challenges, the nasscom-KPMG report introduces a self-assessment compliance maturity framework tailored specifically for GCCs. This framework will look to assist these centres in evaluating their current compliance status and ensuring adherence to regulations, thus mitigating potential risks and fostering a conducive environment for sustained success.
As GCCs continue to evolve and adapt to dynamic business landscapes, proactive engagement with regulatory frameworks has emerged as a cornerstone for their continued growth and contribution to India’s stature as a global business hub.
India’s GCCs are experiencing exponential growth, with over 1580 established as of FY2023 and multiple additions every quarter.
The country is expected to have about 1,900 GCCs by 2025 with a market size of USD 60 billion.
However, along with their rapid expansion comes a set of associated challenges that need to be addressed. Talent management emerges as a critical concern as GCCs seek to acquire and retain high-value digital skills such as automation architecture, cloud development, AI/Machine Learning, and Data Science. To tackle this challenge, GCCs are adopting innovative workforce strategies like “Hire-build-scale” and “borrow-augment & co-create” to ensure a steady stream of skilled individuals ready to meet emerging business needs.
In a statement, Shalini Pillay, India Leader – Global Capability Centre, KPMG in India, said, “India as a nation, is gearing up to attract many more global players to establish and scale their GCCs over the next 3-5 years. As these GCCs continue to build, innovate and scale, adopting new operating models influenced by the emerging technologies, they are also equipping themselves to navigate through a dynamic risk landscape and hence further fortifying the resilience of this model.”
