How Indian GCCs Support Innovation in South Korean MNCs?

Global capability centers are fast-emerging nerve centers of digital transformation with significant evolution in innovation. India hosts more than 1800 GCCs as of FY2024. This is poised to reach between 2,100-2,500 by FY2030 employing 2.5 million people with a market size of $100 billion. GCC is witnessing such prolific growth due to the increasing demand for a rich talent pool, agility and scalability, and technology transformation in the dynamic business landscape. Altogether, they are redefining the operational paradigms of international organizations and nowhere is this more evident than their impact on Japan’s BFSI (Banking, Financial Services, and Insurance) sector.

What was once perceived as cost-arbitrage offshore development centers are now strategic hubs that spearhead core business functions with digital financial architecture to customer-centric product design. For Japan, a country that stands at the intersection of rapid modernization and tradition, the utilization of GCCs is not just another decision but a forward-thinking recalibration of technological excellence. This is further laced with cultural synergies of discipline and quality that are leading to a deeper engagement.

Read how an GCC in India can serve your organization by blending talent, technology, and transformation to navigate the complexities of industry 4.0.

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GCCs In India: A Strategic Ally for Japanese BFSI

In 2024, the BFSI sector in Japan was marked by rapid technological growth, focus on foreign expansion, and a low-interest rate environment. The Bank of Japan (BOJ) raised short-term interest rates for the first time in the last 17 years putting an end to the negative interest rate policy and ensuring a significant shift for the financial sector. Overall, the sector is known for stability and sophistication. Therefore, businesses must leverage India GCCs to make the most of this opportunity and create a substantial impact on revenue.

Here’s how an IT GCC in India can drive digital reinvention.

Core Banking Modernization: This can be done with cloud-native platform strategies and microservices architecture. Such modern systems ensure seamless integration, real-time scalability, and a strategic modular deployment. It ultimately promises faster product rollouts and quick responses to market demands.
Regulatory Compliance: The Financial Services Agency of Japan (FSA) oversees the security and stability of Japan’s comprehensive finance institutions including banks. Navigating such a highly regulated financial environment requires constant adaptation to compliance standards. Indian GCCs are streamlining this process through RPA, intelligent automation, and futuristic analytics solutions that ensure on-time filing. In short, GCCs can ensure your organizations are ahead of frameworks like IFRS 17, Basel III, and AML updates.
AI/ML-Driven Credit Risk: Bengaluru, Hyderabad, Delhi NCR, Pune, and Chennai are GCC hubs in India leveraging India’s deep expertise in ML and data science to build advanced models. They analyze vast datasets in real time to assess browser creditworthiness, identify anomalies, and spot suspicious activities. Such global business services would mean lower non-performing asset (NPA) ratios and a rapid crime prevention within Japan’s BFSI companies.
Experience Transformation: Financial institutions are typically inclined towards fragmented legacy systems. However, customers today demand personalized and intuitive digital experiences. To bridge this gap, Indian GCCs are redefining the banking journey by building platforms that unite interactions across websites, apps, and physical branches.

These advantages, tied to global capability centers, do not lie in just India’s deep fintech expertise but in the ability to integrate domain knowledge with strong technological execution. Japanese BFSI companies can thus seamlessly move from legacy-intense operations to digitally empowered and lean operations to cater to next-gen customers.

Indian GCCs Fueling Japanese Technology Sector

Japan’s technology sector showed a strong growth in 2024 with the IT investments reaching 21.9 trillion Yen, out of which, 4.1 trillion Yen in digital transformation. So, while this industry is highly advanced, it can further benefit from global capability centers to bolster global competitiveness.These are becoming the flesh and blood of Japanese technology organizations seeking a fertile ground for cloud, cybersecurity, AI, and ML.

Top companies are already turning to India to augment their innovation abilities especially in areas like cloud platforms, AI, cybersecurity, and product engineering thus accelerating the need for cross-border collaboration. Additionally, they are also co-developing IP and scalable digital platforms offering 24×7 services across application layers and infrastructure. Japanese firms can freely experiment and iterate innovation with GCCs since they also provide bilingual communications and cultural synergy.

Here’s what Indian GCCs are doing :

Building R&D centers focused on emerging technologies like digital twins.
Co-developing enterprise-grade software solutions.
Providing 24/7 infrastructure support and managed services to ensure the CXOs can focus on building their business.

What typically makes an Indian GCC valuable is their ability to combine agile delivery methods with engineering excellence. They are adept in shortening time-to-market while maintaining and exceeding industry benchmarks that align with the values of Japanese businesses.

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Conclusion

As the global economy becomes increasingly data-driven, the synergy between Japan’s precision-led innovation and India’s digital execution prowess is only expected to deepen from here. This is because global capability centers are no longer peripheral contributors but core partners in shaping the future of Japanese enterprises. In 2025 and beyond, companies can expect green finance, cyber-resilience, AI ethics, blockchain-based platforms, and quantum computing research. It will evolve as a partnership rooted in shared values and long-term vision – one that promises the next era of catalytic metamorphosis.

The smartest way to get started is to join hands with India’s leading GCC enabler, Inductus GCC. We offer Digital Twin and COPO Model which creates a future-ready operational framework for global businesses setting up a GCC in India. Further, our deep expertise in global capability centers coupled with a strong network of partnerships and policy-level advisory has positioned us as the trusted partner for driving measurable outcomes for Japanese MNCs.