The German Mittelstand's GCC Landscape

1 out of 3 German GCCs?

Our German Mittelstand accelerates innovation from India.

The German Mittelstand, Germany’s SME backbone, and home to the market-leading, privately owned businesses known as “Hidden Champions”, are under pressure to reinvent themselves.

Their long successful export-driven business model is being challenged by geopolitical shifts, while talent shortages in cutting-edge technologies are forcing a reconsideration of sourcing strategies. And India's mature tech ecosystem offers a viable pathway to address both challenges.

According to Zinnov, the Mittelstand’s number of Global Capability Centers (GCCs*) had a growth rate of 108% over the past 5 years and is accelerating its commitment to drive innovation from India for several reasons:
- Availability of key talent
- Access to a growth market
- India’s tech ecosystem (3rd largest startup ecosystem)

Zinnov’s report in collaboration with the Indo-German Chamber of Commerce provides a detailed overview of the current landscape of Germany headquartered GCCs. We see a growing interest by German businesses to unlock the natural synergies of Germany’s engineering talent with India’s tech savvy ecosystem, and think it provides large opportunities for both sides.


Source: Zinnov, Indo-German Chamber of Commerce, Mohammed Faraz Khan, Soumya Shankar, Sakshi Wankhede, Madhusoothanan Vijay

#India #Tech #innovation #Mittelstand #SME #hiddenchampion