What is a Global Capability Center (GCC)?
Global Capability Centers (GCCs) are fully owned hubs of global companies generally located cost-effective global locations with an abundant supply of quality talent, and access to technology and infrastructure to bring efficiency in Global operations for multinational parent companies.
They are usually structured as 100% subsidiaries of a global multinational. The global MNCs set up one or more such globally distributed hubs in nearshore or offshore geography.
The GCCs are going beyond non-core and moving core and critical functions into GCCs. These centres integrate multiple business processes and functions into a single location to streamline global operations, reduce costs, and improve efficiency.
GCC Powerup Growth and Value
Global Capability Centers (GCCs) Or Captive Offshore Centers in India empower businesses to transform by accessing globally distributed resources not just for operational efficiency and reducing costs but also to up the value chain gains, drive innovation and achieve sustainability goals, across industries, delivering higher value to the stakeholders in many ways such as:
- Digital transformation across global operations
- High Tech Product Development
- Infuse Innovation
- Boosting efficiency and quality of operations
- Access to newer markets and opportunities
GCC Terminology
Traditionally, Global Capability Centers were known by several terms based on their focus, structure, and function. These terminologies emphasize their structure.
India is the top destination for GCC
India has emerged as a key destination for setting up Global Capability Centers, driven by its advantages in quality talent, cost, and world-class infrastructure. India today has over 50% of the GCC of the entire world. Several factors contribute to India’s attractiveness:
World-Class Talent
India produces over 1.5 million engineers and 500 K management graduates annually, providing a deep and diverse talent pool, equipped to meet global business demands across various sectors i.e. general IT services and business functions to Artificial Intelligence (AI), data analytics, research and development (R&D) in niche areas like electronics, design, telecom, quantum computing and more.
Cost Efficiency
India offers significant cost savings for businesses. Establishing a GCC in India can save up to 50% in operational expenses compared to onshore in the USA or Europe.
Government Support and Incentives
The government of India is working on a policy to be unveiled for GCC. In past Software Technology Parks of India (STPI) provided a ground for GCCs to flourish. Special economic zones (SEZ) still are useful for GCC setups. SEZ are also the biggest GCC clusters today.
Further Policies like “Make in India” and Production Linked Incentives make setting up GCC in India more meaningful to set up GCC along with the production facilities in India.
Other factors
The strong public sector in many areas, English as a common medium of education, time zone and a large market are many other reasons for India to provide power to a favourable GCC location.
Scope of Services
Our GCC Setup Service Offering
We are a full-service provider across GCC setup and operations. However, our service delivery is modular and spans across 7 modules. The first one is core consulting and the next 6 are modular service delivery for GCC Setup.
Benefits of setting up GCC
Setting up a Global Capability Center in India offers several benefits that can enhance operational efficiency and business growth
GCC functions on a scale of value
The GCCs have evolved by scaling on the value chain. The following scale depicts various stages of GCC:
- SW Development
- Backoffice operations
- Shared Services
- Outsourced Product development
- Engineering service
- Product Design
- R&D Centers
- Marketing and Sales drives
- Manufacturing centers
Why choose us for your GCC Setup?
- End-to-End Services
- Your extended team for setup
- Commitment to Success
- Local Terrain Knowledge
- Help mitigate most Risks
- Niche Player
FAQs
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Write to us your questions and our team will get back to you with answers in detail. Or Book a free consultation slot with us.
Frequently asked questions?
How does GCC differ from GIC & Captive Offshore Centers?
The Global Capability Center (GCC) is the next stage of value add for the global multinationals. The evolution has happened over generations to come to this stage. The GICs were more to consolidate the offshore work in in-house (insource). Captive offshore centers were about setting up at least one center fully owned in offshore geography. GCC is about performing more advanced functions within these centers.
Why is India the top destination for GCC?
India has achieved maturity in the GCC space and the biggest factor responsible for this is the versatile talent that India offers across technology, management and other skill areas. The combination of low-cost but high-quality talent is the winning point.
What is the value add that GCC offers over other traditional formats?
GCCs have scaled up the value chain as they have made it possible to bring in higher value-oriented work like engineering, design, product development and R&D into one offshore geography either in on GCC center or distributed centers.
How long does it take to set up a GCC?
The time required to set up a GCC can vary based on the complexity of the services to be integrated and the scale of the center. A small-size GCC may take 3-6 months to become functional, the large scale may be made functional stages but may end up completing in 12 to 18 months for a full GCC setup.
Which locations or cities do you provide GCC setup?
We provide services across India in any city for GCC. We work on project office methodology and hence are location independent organization. Though we have footprints in Pune, Bangalore and Noida (Delhi). This capability also allows us to work on international locations if required.