Siemens technology focuses on innovation and sustainability

The rapid growth of the Global Capability Centers (GCC) sector in India has garnered significant attention, with the number of GCCs expected to increase from 1,600 to around 2,400 by 2030, according to a report by EY. This expansion is driven by factors such as India's vast talent pool, a conducive business environment, and the country's thriving start-up ecosystem.

In this interview, Pankaj Vyas shares his insights into the key drivers behind this growth, how Siemens Technology & Services differentiates itself in the competitive landscape, and the emerging trends and technologies shaping the future of the GCC sector in India.

Growth Drivers, Differentiation Strategies, and Future Trends Shaping the Indian GCC Sector

Given the rapid growth of the Indian GCC sector, what are the key factors driving this expansion?

India is home to over 1,600 GCCs, valued at USD 46 billion, and estimated to reach around 2400 GCCs valued at USD 110 billion by 2030, according to EY’s ‘Future of GCCs in India - a vision 2030’ report. This rapid growth of the Indian GCC sector can be attributed to several key factors.

A key factor is the proliferation of technology, leading to a significant increase in the demand for technology talent globally. India, with one of the largest technology talent pools in the world has become a major draw for global companies looking to expand their technology offerings.

The last few years have therefore seen companies across various sectors set up their centers in the country - a trend that is expected to continue over the next few years. Additionally, a conducive business environment and an increasing ease of doing business has also made India the top choice for these companies. 

The thriving start-up ecosystem in India, too, presents a unique opportunity for collaboration between GCCs and start-ups. Such partnerships help accelerate the innovation journey, with GCCs benefiting from the agility of start-ups, while start-ups gain access to market insights, enterprise connections, and funding. 

Together, these factors create a high-growth, dynamic environment that continues to drive the rapid growth of the GCC sector in India.

How does Siemens Technology & Services differentiate itself from other GCCs in the Indian market?

One of the strategic priorities at Siemens is to develop technology with a purpose. Over the years, Siemens Technology and Services has partnered closely with Siemens entities and business portfolios to develop solutions for global and regional transformation in the areas of Smart Infrastructure, Digital Industries and Mobility.

What makes us stand out is its ability to bring technology and domain knowhow together for value creation to its customers, working across all operating companies of Siemens. It's this sense of purpose, combined with an unrelenting focus on innovation, that sets us apart from other players in the market. 

How does Siemens Technology & Services ensure that its technology solutions are aligned with the unique needs and priorities of different industries? How do they capitalize on the growing demand for digital capabilities in the GCCs?

At Siemens Technology and Services, we create innovative solutions to solve the digital transformation and sustainability challenges that plague our planet. Some of the core technologies we work with include data analytics & artificial intelligence, connectivity & edge, simulation and digital twin and automation.

Our Community of Experts focus on core, emerging, and automation technologies, as well as expertise in Product Lifecycle Management (PLM), enables us to deliver tailored services that meet the unique needs of clients across various sectors. This growing demand for digital capabilities can only be met by building a strong talent team that is able to address this evolving need. 

Innovation is at the heart of what we do, and it’s driven by our people. Siemens Advanta, headquartered in Germany, with its deep domain knowledge and a robust tech stack supported by over 11,500 experts globally, plays a pivotal role in this.

Additionally, Siemens' commitment to research and development is underscored by its investment in a team of over ~50,000 dedicated R&D professionals worldwide, ensuring that we continue to push the boundaries of what’s possible. 

We are therefore looking for talent with a strong understanding of the technology space, an inclination towards research, and a desire to create a positive impact on the world. Given the nature of the work we do, having deep domain understanding is crucial. This allows us to be able to deliver high-end solutions with a knowledge of the specific industries we operate in. It helps further fuel our vision of building technology with purpose.

How are you addressing the challenges of implementing emerging technologies like AI, ML, and data analytics within its operations? 

To maximize the benefit of these emerging technologies, we recognize the need for continuous workforce upskilling – driving our strong focus on learning & development. Our Global Learning World platform offers a plethora of courses in both in-person and online formats, ensuring that our employees are equipped with the latest skills required in this rapidly evolving technological landscape.

In addition to our internal training programs, we also believe in fostering external collaborations with leading universities and B-Schools. In line with this, we have tie-ups with IIIT-B, IISc, BITS Pilani, and other leading institutions. This also ensures that students are well-prepared for the evolving roles in these cutting-edge technologies.

Our commitment to continuous learning is complimented by our vibrant innovation culture. In fact, our Communities of Experts drive this through open collaboration, rapid prototyping, and hackathons. We’ve adopted agile development methodologies across our operations, enabling us to respond quickly to changing market needs. This not only enhances our readiness for newer technologies, but also helps us be future-ready.

What are the key trends and technologies that you believe will shape the future of the GCCs in India?

Currently, GCCs in India are diversifying their capabilities and focusing on emerging technologies such as cloud computing, advanced analytics, AI/ ML, and ADAS solutions, to name a few. According to ANSR’s report nearly 80% of new GCCs are prioritizing AI/ML capabilities to drive innovation and enhance organizational efficiency - a trend we think will continue for the foreseeable future.

Geographically, too, GCCs are exploring new locations. While Bangalore, Hyderabad, Chennai, and Pune remain popular destinations, Tier 2 cities like Ahmedabad are rapidly emerging as favorable locations for setting up GCC operations. Favorable state government policies, economical land parcels, lower living costs, and the presence of talent in these towns make them a lucrative destination for GCCs to set up their offices.

The sector continues to hold immense promise, contributing nearly 1% to India’s GDP. With the ongoing advancements in technology, the rapid evolution of client requirements, economical labor, and a large talent pool will all help GCCs play a crucial role in supporting the innovation efforts of global MNCs.