New Delhi, July 9 (IANS) The next generation of global capability centres (GCCs) will be driven by the strength of the ecosystem they operate in rather than location or incentives alone, Sanjay Kaul, Group CEO and Managing Director of GIFT City, said on Thursday.

Speaking at the session on “The Evolving GCC Ecosystem: Key Insights” during the second edition of the National CII GCC Business Summit organised by the Confederation of Indian Industry (CII) in New Delhi, Kaul said the rapid adoption of artificial intelligence (AI) across industries has made the need for robust digital infrastructure and innovation-friendly regulatory frameworks more critical than ever.

“With AI entering all spheres of industry, we need a robust ecosystem supported by strong connectivity and digital infrastructure. We also need an ecosystem where innovation can thrive, backed by a regulatory framework that facilitates it. We have it in GIFT City,” he said.

Kaul said similar ecosystems across the country would enable GCCs to flourish, adding that future GCCs would increasingly choose destinations offering integrated capabilities rather than isolated fiscal incentives.

“The next generation of GCCs would not be driven purely by locational factors or by incentives but by an ecosystem. They will look for a strong ecosystem where one system feeds another; it is a whole continuum,” he said.

He noted that while GCCs initially established operations in India because of the country’s large talent pool, they are now being attracted by India’s expanding capabilities and the broader ecosystem supporting innovation, making the country an even more compelling destination for global enterprises.

According to Kaul, companies are increasingly prioritising locations that offer quality infrastructure, digital connectivity, predictable regulations, high standards of living and opportunities for innovation instead of standalone incentives.

The session also examined India’s emergence as the world’s leading GCC destination, with speakers observing that the country has moved beyond cost arbitrage to capability arbitrage and is now entering an era of “control arbitrage”, where global companies are entrusting Indian GCCs with strategic decision-making and enterprise-wide transformation.

–IANS

pk