India most preferred location for global shared services, shows Deloitte's survey

India has emerged as the most preferred location for global shared services, according to a recent survey by professional services firm Deloitte.

The findings from the 2023 edition of “Global Shared Services and Outsourcing survey” showed that India is followed by Poland and Mexico as the top preferences.

The GCC sector currently contributes a revenue of $60 billion, which is expected to reach $75-80 billion within 4-5 years.


“India is expected to have over 1,900 GCCs, employing 2 million people and earning $60 billion,” said Saurabh Mathur, Partner, Deloitte Touche Tohmatsu India.

According to WTO estimates, India is also amongst the world's top exporters of services, doubling its share in global services trade to over 4% in 2022 from 2% in 2005. This, backed by survey findings, showcases that shared service centres are going to be at the core of India strengthening its position on the global map, and achieving the country’s services exports target of $400 billion for the current fiscal year, said Mathur.

The report delved into the evolving service delivery models adopted by the world's largest companies amidst tightening economic conditions and continued preference for remote and hybrid work. It also uncovered trends and strategies driving process optimisation and cost-efficiency across industries.

The global survey revealed a significant shift, with Global Business Services (GBS) organisations delivering transformational capabilities and becoming more closely aligned with the C-suite.

Over 40% (an increase from 21% in 2021), of experienced GBS firms, are now being led by dedicated GBS leaders, with CFOs taking the lead in over 80% of these organisations that go beyond their defined scope.

The survey also discovered that automation takes centre stage as the top digital enabler for GBS organisations and is expected to be a key focus area in the next 1-3 years.

Talent Shortage
However, despite significant progress, GBS organisations face challenges such as talent shortage, which is still seen as an implementation barrier while adopting automation by 40% of GBS organisations.

“With a talent revolution coming in, one of the solutions is to move work to cost-efficient locations and navigate tight labour markets and cost pressures, followed by upskilling and bolstering employee well-being,” said Mathur.

Emphasis on ESG
The survey underlined the role played by GBS in driving environmental, social, and governance (ESG) outcomes. As organisations place greater emphasis on ESG, GBS are actively supporting a wide array of ESG processes and contributing to their parent group’s net-zero aspirations. The ESG adoption is broadly industry-agnostic, with a majority of the industry areas reporting a significant focus on ESG ranging from 45 – 55%.

The integration of enabling technology and ESG initiatives will also be a key differentiator for organisations seeking to drive operational excellence, foster sustainability, create long-term value for stakeholders, and drive greater impact across industries in the years to come, according to the survey findings.