Business Expansion: Smart Strategies for Sustainable Growth

1. From Tokyo to Hyderabad: The Future of GCCs for Japanese Conglomerates The Global Capability Centers have ceased to be low-cost back offices and transformed into innovation centers. In India, more than 1,900 GCCs comprising approximately 1.9 million professionals are operating today and contributing tens of billions of dollars every year, a size that is now making Japanese conglomerates speed up their GCC investments in cities like Hyderabad. Amidst the increasing cost of doing business in Japan and the aging workforce, Japanese companies are ensuring that Hyderabad lies right at the center of a new GCC strategy. GCCs are expected to provide almost half of the office leasing demand in major Indian cities in 2025 following the revived growth and long-term investments of multinationals. It is these structural changes that pose an irresistible economic edge to Japanese conglomerates in search of scale, speed, and resilience. India’s GCC Ecosystem Is Hooked Up With the Capabilities of Japan. Japanese conglomerates have advantages of manufacturing excellence, system thinking, and kaizen-based R&D. The Global Capability center ecosystem in India has the benefits of digital engineering, AI/GenAI, cloud-native delivery, and large talent pools. This synergy makes GCCs a platform of shared services centers, Knowledge Process Outsourcing (KPO)and high-end engineering, transforming the role of delivering transactions to global product and service innovation. Why Hyderabad? Hyderabad offers: Extensive engineering and IT human resources, accelerating GenAI and cloud capabilities. Policy and ecosystem support (state-level GCC and IT playbooks, centres of excellence relating to cybersecurity and AI). Operating economics and competitive real estate options compared to APAC options. The above considerations prequalify Hyderabad as the selected site of the Japanese GCC expansions that have a digital transformation, product engineering and shared services focus. Economic Benefits

2.  A smaller base of operating costs, compared to Tokyo and most East Asian hubs, allows a rush towards R&D and talent.  Access a huge source of senior-level technical personnel in GCC digital transformation and KPO requirements.  India has an agile delivery and prototyping culture, which enables software-defined products to have a faster time-to-market.  State and national policy efforts to make India a global GCC hub, possibly through fiscal and skilling aid. The Role of Inductus GCC in This Transformation The Role of Inductus GCC in This Transformation As a specialized consulting firm focused on GCC establishment and operations, Inductus GCC plays a pivotal role in facilitating this Tokyo-to-Hyderabad transition for Japanese conglomerates. Our expertise encompasses several critical areas: Cultural Bridge Building: We understand the nuances of both Japanese corporate culture and Indian business environment, enabling smooth integration and communication between headquarters in Tokyo and GCC operations in Hyderabad. Talent Acquisition and Development: Our deep market knowledge helps Japanese companies identify and onboard professionals who not only possess technical skills but also understand and appreciate Japanese work methodologies and quality expectations. Operational Excellence: We assist in establishing governance frameworks that maintain Japanese standards of precision and quality while leveraging the agility and innovation capabilities of Indian talent pools. Strategic Planning: Our consulting services help Japanese conglomerates develop comprehensive GCC strategies that align with their long-term business objectives while maximizing the benefits of operating in Hyderabad's dynamic business environment. Playbook For Implementation Evaluate: Determine roles (R&D, shared services, KPO, digital laboratories). Design: Determine governing, bilingual, cross-cultural cadences and co-located leadership. Install: Talent pipelines, skilling (Japanese language + domain upskill), and infrastructure. Scale: Extend service delivery to co-creation of product and IP generation. This chain will make sure that there is conformity between Hyderabad delivery speed and Tokyo HQ priorities. Difficulties and Alleviation

3. The main source of friction is cultural and governance differences (hierarchical decision- making vs agile delivery). The mitigation measures should include structured cross-cultural onboarding, rotational leadership, bilingual talent pools, and explicit KPIs that would translate kaizen to digital sprints. The emerging Japan-centered ecosystem in Hyderabad (programs in Japanese, business councils, and existing Japanese GCCs) reduces the integration friction. Future Perspectives Japanese conglomerates have not just a cost arbitrage future when it comes to GCCs; it is a strategic refocus in GCC-led digital transformation, KPO excellence and productised innovation. As the GCC footprint expands in India and Hyderabad increases its Centre of Excellence competencies, Japanese companies with long-term talent strategies, governance parity and a co-innovation paradigm will transform GCCs into global competitiveness drivers. The way is evident: Tokyo’s strategic intent for Hyderabad operation-sized GCCs is that they will be the connecting tissue of Japan-India innovation. Conclusion Japanese conglomerates are using India Global Capability Centres to propel scale, resiliency and digital-first across boards from Tokyo to the technology hubs of Hyderabad. The ecosystem of Hyderabad, characterised by affordability, professional talent and infrastructure that is future-orientated, is no longer a support destination. It is the catapulter of shared services centers GCC digital transformation plans, and advanced KPO models that fit the vision of long-term growth of Japan.