But what about small and mid-sized companies? In this blog, we’ll explore the key drivers behind India’s growing appeal for market research operations, the challenges smaller firms face when establishing GCCs, and how Bengaluru, a strategic hub for global operations, can provide solutions for success.
Over 65% of these GCCs now support multiple functions, going beyond traditional roles. LSHC GCCs are not only involved in backend operations but are increasingly contributing to high-value areas like drug discovery, development, and post-marketing surveillance (PMS). Supported by the Indian government’s Make in India, Digital India, and Skill India initiatives, the country’s GCC ecosystem is thriving, with central and state government policies offering a conducive environment for growth.
Silicon Valley of India
Key Drivers of GCC Growth
There are several factors that make India an attractive destination for establishing GCCs in the LSHC industry:
- Cost Efficiency: The most immediate benefit of setting up a GCC in India is the significant cost advantage. With lower wages, real estate expenses, and operational costs—especially in tier 1 and tier 2 cities—India offers market research companies the opportunity to reduce overheads without compromising quality.
- Innovation & R&D: India has developed a thriving innovation ecosystem, particularly driven by its IT sector and a rapidly growing startup culture. With access to cutting-edge technology and an agile, skilled workforce, Indian GCCs are at the forefront of driving research and development across various sectors, including healthcare.
- Ease of Doing Business: India has made significant strides in improving its business climate, jumping 14 spots in the Ease of Doing Business Index.3 Pro-business reforms, both at the central and state levels, continue to attract foreign businesses, including those in market research.
- Abundant Skilled Talent Pool: India produces over 1.5 million science, technology, engineering, and mathematics (STEM) graduates each year, providing a vast pool of talent that is digitally skilled and ready to contribute to the healthcare and market research sectors.4
- Time Zone Advantage: India’s time zone offers a strategic advantage for businesses looking to operate round-the-clock. The ability to provide 24/7 services, particularly for global companies, is a major driver for setting up operations in the country.
Challenges for Mid-Sized Companies in Establishing GCCs in India
Despite the obvious advantages, mid-sized companies often face challenges when trying to establish their own GCCs in India. Here are the key hurdles they encounter:
- Limited Access to Skilled Talent: Competing for top-tier talent can be difficult for mid-sized firms without the brand recognition or scale of larger organisations. This can result in a gap in critical expertise needed to drive business success.
- Cost Constraints: While India offers significant cost advantages, mid-sized companies may struggle with the financial resources required to establish and scale large operations. This can limit their ability to achieve the same level of cost efficiency as larger players.
- Inability to Create Strategic Value: Without centralised, GCC-driven operations, mid-sized companies often face limitations in their scope and value propositions. This can restrict their ability to engage in complex and high-value tasks such as in-depth market research, innovation, or strategic development.
- Limited Local Knowledge: Mid-sized companies often lack on-the-ground support teams to navigate local complexities effectively. Without an ownership-driven local leadership, decision-making can be ineffective, leading to suboptimal outcomes.
How m360 Research Can Help Overcome These Challenges
India, and particularly Bengaluru, are rapidly becoming strategic hubs for market research companies looking to expand, optimise costs, and tap into a wealth of skilled talent. While large corporations have long benefited from the country’s thriving ecosystem, small and mid-sized firms may face challenges in establishing effective GCCs. This is where m360 Research steps in. By offering plug-and-play solutions, comprehensive recruitment services, and operational support, m360 research helps businesses scale effectively and remain competitive in an increasingly dynamic market. With m360 Research’s support, small and mid-sized firms can unlock the full potential of India’s growth opportunities, positioning themselves as key players in the global market research landscape.
1 Deloitte, 2024 Report on “The growth and evolution of Global Capability Centres (GCCs) in India – Trends and opportunities within the Life Sciences and Healthcare (LSHC) industry”.
2 Economic Times: Roadmap laid to make Hyderabad the healthcare mecca. https://health.economictimes.indiatimes.com/news/policy/roadmap-laid-to-make-hyderabad-the-healthcare-mecca/98208530
3 Press Information Bureau Government of India. Ministry of Commerce & Industry – India ranks63 in World Bank’s Doing Business Report.
