Embark, the Embassy Group-backed platform that helps companies set up and operate global capability centres (GCCs) in India, expects the mid-market segment to drive much of the next wave of GCC growth, as companies increasingly set up smaller, specialised centres rather than traditional back-office operations.
“Today, when there’s much talk about AI, there is more acceptance of setting up smaller centers because these are no longer back-office centres but capability hubs in their true sense,” Aravind Maiya, co-founder and CEO of Embark, explained.
He added that the opportunity spans mid-market companies globally, which he defined as those with revenues between $500 million and $5 billion, as well as larger companies setting up smaller, niche centres in India. The mid-market segment is where Embark expects growth.
Only 35 per cent of the Fortune 500 are set up in India. In the Global 2000, that number drops to around 20 to 23 per cent , meaning around 77 per cent of these companies are not yet in India, Maiya highlighted.
Embark, which began operations around 16-17 months ago, has grown to just under 100 employees and has close to 11 customers, with several more conversations in its pipeline. The company provides services across the GCC lifecycle, from consulting and design to building, operating and transforming centres. Its services include talent solutions, workspaces, finance, tax, legal compliance and IT infrastructure.
strongest demand
Embark sees the strongest demand currently coming from technology and BFSI, which together account for a little over half of the 2,150 companies already operating in India. However, pharma, healthcare and life sciences, as well as insurance, energy and utilities, are expected to grow faster from their relatively smaller base.
Embark also expects GCC demand to remain concentrated in India’s tier-one cities over the next five years. Maiya estimates that 90-95 per cent of demand will continue to come from tier-one locations, with companies considering tier-two cities after establishing their primary centres and looking for niche capabilities.
“While tier-two cities have talent, companies look at these cities only once they have established and grown in tier-one cities. They may look for niche capabilities and go to Coimbatore, Indore, or Ahmedabad to set up a second or a third center. This is how it will be for the next five years.
But as more service providers grow in tier two cities, the talent pool, infrastructure, and social ecosystem will also grow. Only then will GCCs take the risk of potentially setting up their first centre in a tier two city,” Maiya explained.
He added that GCCs need to ensure their India teams are integrated into the global organisation, with clear reporting lines and opportunities for employees to progress into leadership or global roles. “If you set up a centre as a back office, everything falls apart,” he said.