India’s GCC Compliance Key Issue: Study

Bengaluru: Compliance with complex regulatory requirements such as transfer pricing, special economic zone regulations and labor laws are key issues for global potential centers (GCC) operating in India. Bengaluru on Thursday.

Some 81% of GCC executives identified transfer pricing as their top regulatory priority, 67% said SSE/STPI regulation, and 60% said labor law was one of their key regulatory priorities.

Besides, according to CXO respondents, corporate income tax, DPDPA (Personal Data Protection Act) and FEMA (Foreign Exchange Management Act) are among the top 5 regulatory issues, according to the report.

As the GCC continues to evolve and adapt, proactive engagement with the regulatory framework will be of paramount importance to ensure continued success and contribute to India’s position as a global business hub, the report noted.

Additionally, 96% of leaders interviewed cited the adoption and use of new technologies as a key priority in achieving sustainable growth, while 72% of GCC leaders identified talent management as a key priority.

External considerations for new technologies include third-party considerations, regulatory and compliance considerations, as well as the technology landscape and cyber threats. Meanwhile, internal considerations include the quality and reliability of content, data, and governance and ethical considerations.

Finally, 44% of respondents expressed the view that it was necessary to postpone concerns about concentration, while only 20% of survey respondents viewed GCC concentration in India as a perceived risk.

“As the GCC continues its growth path, moving up the maturity curve, with factors such as blurring geographic boundaries and technological disruption, these centers are constantly scanning the dynamic risk landscape and adapting to successfully navigate it,” Srikanth said Srinivasan, Vice President, Nasscom.

As of 2022, there were over 1,580 GCCs operating in India, employing 16.6 lakh, according to a report released earlier this week by consulting firm CBRE. This number is expected to increase to 1,900 by 2025 and the professional talent pool will cross 20 lakh, he added.