Surge in tech centres of global retailers in India


BENGALURU: Over 25 new global capability centres (GCCs) in the retail/CPG (consumer packaged goods) industry are looking to set up their tech centres in 2021, tapping into the matured ecosystem of talent and global operating models, a Nasscom and ANSR report said. ANSR establishes and operates GCCs in India. GCCs are engineering, R&D and shared services centres of MNCs.
The report said many India-based retail/CPG GCCs have now evolved to become the second headquarters for the host companies – complete with global leaders with functional responsibilities to own and drive critical business growth outcomes. Such GCCs are also supporting complex, core functions including supply chain, merchandising and marketing.
India is home to about 25% of GCCs of global retail/CPG companies and employs over 50,000 in India. There are 63 retail and CPG companies including Walmart, Target, Tesco, Nestle and Pepsico among others that have set up tech centres in the country. Bengaluru is the preferred GCC location hosting over 70% of retail/CPG GCCs.

A key rationale to set up a GCC in India is to leverage global distributed engineering capabilities. Other reasons include access to global talent pool and building new business capabilities. Retail/CPG GCCs are making significant investments in building capabilities in digital, data analytics and automation/RPA.
Take Tesco Business Services (TBS), an arm of the UK-based retail chain Tesco. TBS is helping transform the core Tesco business with ownership of global processes, culture of continuous improvements, digital transformation interventions, and ability to drive innovation. TBS has developed the edge to transform Tesco’s core business.
TBS executes the group’s key processes across its markets and functions with one purpose — to serve Tesco’s shoppers a little better every day. It manages £4 billion of Tesco’s payroll.
US retail chain Target has aggressively transformed end-to-end global functions using digital technologies. Target’s India team brings alive some of Target’s most important strategies across diverse functions such as marketing, supply chain, product, technology, stores, internal/external branding, data sciences and process robotics & automation (PRA).
Lalit Ahuja, founder and CEO of ANSR said the global retail/CPG industry is in the throes of a profound transformation leading to increased adoption of disruptive platforms including digital, data/AI, automation, and cloud. “Over the coming years, we expect an upward, multi-dimensional trend of increasing number of Retail/CPG GCCs ‘twinning’ the enterprise, building a pool of future global leaders, developing capabilities at scale to accelerate business transformation and driving innovation in India,” he said.
Nasscom president Debjani Ghosh said in the next couple of years, India will witness a fundamental growth in this sector as the top 100 global retail/CPG companies consider establishing a GCC in the country to drive innovation and business transformation.



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