Global Capability Centres In Auto Sector Accelerates Faster

KT Jagannathan
18 Sep 2023
09:00 AM
2 Min Read

The automotive companies focus on areas such as software development, embedded electronics, virtual vehicle development support functions, data analytics and machine learning.


Global Capability Centres (GCCs) in India are undergoing a major metamorphosis. From low-cost centres, they have transformed into innovation hubs and centres of excellence, according to a report on employment trends in GCCs prepared in August by CIEL Works, part of CIEL group, a talent solution provider based in Chennai.

CIEL Works conducts research and analysis across sectors on the changes in recruitment and staffing and presents insights for critical decision-making. India’s pool of digital resources is the biggest driver for GCCs, the report said.

While banking and financial services continue to hold the largest share of the GCCs sector overall, the CIEL report, however, finds some new trends.

“In the past year, 49% of GCCs were either set up or were in expansion mode within the software and Internet industry. This signifies a significant focus on software development, technology, and Internet-based services within GCCs,” the report said.

Automotive Sector Catching Up Fast

The automotive sector, with 9% of GCCs, is catching up fast. The electrical and electronics industry accounts for 8% of the GCCs. Significantly enough, the data indicates the diversification of GCCs across sectors, reflecting the evolving nature of their operations and the changing demands of industries worldwide.

“Engineering, research & development remains a key function in most of the GCCs set up in the last one year. This is primarily due to the abundant talent pool, favourable cost structures and the potential for driving technological advancements and product development,” said the report.

“These GCCs play a crucial role in conducting engineering R&D activities, driving innovation and developing new products or features for the global market. In addition to product design, prototyping, and software development, these GCCs serve as innovation hubs. They actively drive advancements in technology within the auto sector, exploring emerging technologies like electric vehicles (EVs), autonomous driving, connectivity, and mobility solutions,” the report said.

Job Opportunities 

The job openings in automotive captive centres in India, according to the report, are primarily focused on software roles. “The automotive industry has been undergoing a significant transformation over the past decade with the advent of technologies like electric vehicles, connectivity, and advanced driver-assistance systems,” it said. Companies were looking for candidates with degrees in computer engineering, electronics and communications engineering or electrical engineering, the report further said. Companies such as Marelli, Fisker, Stellantis, Triton and the like have beefed up their presence in India and drawn up a substantial hiring programme.

The transition from back-office tasks to technology and innovation-led initiatives calls for a significant change in the skills required by the workforce. Before the shift, the skill sets required in GCCs were centred around supporting operational functions and ensuring the efficient execution of routine tasks. The skill needs have now expanded to encompass a broader range of specialised technical skills, “There is a growing demand for specialised digital and machine learning skills such as AI, Applied Machine Learning, Data Analytics, Cyber Security, Blockchain, Augmented Reality Apps Design, Engineering, and UI/UX design,” the report said.

According to the software industry body Nasscom, India has over 1,500 GCCs. This number is expected to go beyond 2,000 by 2026-27.

NB: Photo is representational; courtesy: Valeo.

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