BENGALURU: Indian Global Innovation Centres (GIC) have evolved from delivery centres to innovation hubs, and the country is set to witness a growth of Engineering Research & Development (ER&D) centres, said a report by consulting firm Zinnov.
“With a renewed focus on innovation, maturing start-up ecosystem, emerging digital technologies, India is well positioned to become a dominant player in the ER&D space,” the report said.
Indian GICs, from being operations-cost-and-talent-focused, have transitioned into being value creators and innovation hubs over the last decade. India’s capacity to keep evolving and to dominate the ER&D space will lie in its ability to become a global transformation hub, which will fuel the next growth wave.
With over 976 MNCs and 1,257 ER&D centres, backed by a talent pool of over approximately 3,96,000 people, the Indian ER&D space is scaling rapidly, dominated by US-based MNCs. Currently, US-based MNCs account for 63 per cent of the installed base of ER&D centres, while APAC and EMEA are now beginning to gain traction.
“From a talent standpoint, the lines between the industries are blurring due to hyperconvergence of skill sets. Today, the talent hired by diverse GICs that span verticals such as banking, software and Internet, retail and industrial, is not very different because almost all of them are working on digital technologies such as AI/ML, Data Science, Blockchain and IoT,” said Pari Natarajan, CEO, Zinnov.
Major cities like Bengaluru, NCR, Pune, and Hyderabad continue to be strongholds of ER&D installed talent. Tier-2 cities such as Coimbatore, Vadodara and Thiruvananthapuram are gaining a strong foothold. Some of the reasons for the growth of smaller towns are improved infrastructure and connectivity, available talent and strong government incentives.