Global Capability Centers (GCCs) have come a long way—from being offshore cost-saving units to becoming powerhouses of innovation, efficiency, and strategic growth. Today, they do much more than handle back-office functions; they’re key drivers of transformation, helping enterprises tap into global technology and talent to stay ahead of the curve. GCCs in India now contribute 23% of the nation’s IT exports and are projected to surpass $100 billion by 2030, generating over 2.5 million jobs.
However, building a high-performing GCC isn’t just about setting up shop in a cost-friendly location. With the right strategy, these centres can become more than just support hubs—they can fuel enterprise-wide innovation, accelerate digital transformation, and even create new revenue opportunities. By strengthening cybersecurity, optimizing supply chains, and driving AI-led efficiencies, a well-structured GCC can position businesses for sustained competitive advantage.
Accelerate your GCC journey with G&S Consulting’s tailored workforce and compliance solutions.
What to Consider Before Setting Up a GCC
Before embarking on the GCC journey, enterprises should conduct a thorough assessment of their needs and goals. Establishing a capability center should not be just about cost arbitrage but also about creating a sustainable and scalable model for growth.
1.Defining the Business Case
Organizations need to evaluate whether a GCC aligns with their operational objectives, focusing on cost savings, efficiency improvements, and access to global talent. Conducting a cost-benefit analysis is crucial to justify the investment.
2.Selecting the Right Location
Consider factors such as availability of skilled talent, infrastructure, ease of doing business, and regulatory landscape when determining the ideal GCC location. India remains a top destination, with global companies setting up capability centers in cities like Bengaluru, Mumbai, and Hyderabad due to their skilled talent pools and strong infrastructure. Additionally, Tier-2 cities like Coimbatore and Vizag have seen 40% growth in new GCC establishments due to lower operational costs and improved facilities.
3.Governance and Integration
A GCC should not operate in isolation; it must be seamlessly integrated with the parent organization’s business strategy. Establishing governance frameworks ensures transparency, accountability, and alignment with broader corporate goals.
Building the Right Infrastructure
A high-performing GCC requires a solid foundation comprising advanced technology, modern facilities, and robust security measures. This infrastructure serves as the backbone of operations, enables smooth workflows and protects critical business data.
- Technology Infrastructure: AI and automation are at the forefront of GCC evolution, with 67% of GCCs actively deploying AI/ML technologies to optimize operations in predictive analytics and process automation.
- Physical Facilities: The workspace should be designed to promote productivity and collaboration. Reliable internet connectivity, ergonomic office layouts, and state-of-the-art facilities contribute to an effective working environment.
- Cybersecurity and Compliance: With growing cyber threats, enterprises must ensure their GCC adheres to stringent cybersecurity protocols, including data encryption, access control, and compliance with global data protection regulations.
Navigating Compliance and Regulatory Challenges
Setting up a GCC in a different geographical region brings regulatory and compliance challenges that must be proactively addressed.
- Labor Laws and Employment Regulations: Understanding country-specific hiring laws, employee benefits, and workplace policies ensures compliance and mitigates risks.
- Taxation and Legal Frameworks: Businesses should engage with financial and legal experts to navigate taxation complexities, ensuring proper structuring of contracts and transfer pricing policies.
- Data Security and Privacy: 78% of GCCs are upskilling teams for AI adoption, reinforcing the need for stronger data security measures. Compliance with regulations like GDPR and CCPA when implementing GCC policies is critical.
Recruiting a High-Performing GCC Workforce
People are the driving force behind a successful GCC. Attracting and retaining the right talent requires a strategic approach to recruitment, employer branding, and workforce development.
- Talent Acquisition Strategy: Identify key roles—whether leadership, technical, or operational—and define the skills required to drive GCC success.
- Employer Branding: A strong brand reputation helps attract skilled professionals. Promoting career growth opportunities, employee benefits, and work culture can enhance recruitment efforts.
- Structured Hiring and Training: A well-defined onboarding process and continuous skill development programs ensure that employees are abreast of business objectives and industry trends.
Operationalizing Your GCC
Once the GCC is established, ensuring smooth operations requires standardized processes and integration with the parent organization’s business functions.
This includes the following key components:
- Workflow Standardization: Defining clear workflows and operational frameworks enhances efficiency, reduces redundancy, and streamlines collaboration across global teams.
- Knowledge Transfer Mechanisms: Establishing robust knowledge-sharing processes, including documentation, training, and mentorship programs, helps bridge gaps between the parent company and the GCC.
- Performance Monitoring: Implementing key performance indicators (KPIs) and reporting mechanisms allows enterprises to track GCC effectiveness and drive continuous improvement.
Best Practices for Long-Term GCC Success
Building a GCC requires ongoing optimization, innovation, and adaptability to market changes. This can be done by incorporating:
- Employee Development and Engagement: Investing in training programs, leadership development, and engagement initiatives fosters a high-performance culture.
- Benchmarking and Competitive Analysis: Regularly comparing GCC performance against industry peers helps identify areas for optimization and innovation.
- Agile and Adaptive Mindset: Embracing flexibility and responsiveness to market demands ensures long-term relevance and competitiveness.
Strengthen your GCC workforce with G&S Consulting’s proven expertise in tech talent hiring.
Scaling and Expanding GCC Operations
As businesses grow, scaling a GCC without compromising quality and efficiency becomes a key challenge.
A strategic approach to expansion should consider the following key points:
Balancing Cost and Talent Retention: While cost efficiency remains a priority, retaining skilled talent is equally crucial for GCC scalability.
Leveraging Automation and AI: Automation tools and AI-driven solutions enhances productivity and reduces manual dependencies.
Phased Expansion Strategy: With the GCC economy expected to grow by 4% in 2025, businesses must invest in gradual scaling—starting with core functions and gradually expanding capabilities to maximize value.
How G&S Consulting Can Help Build and Optimize Your GCC
With 16+ years of experience in talent acquisition and a specialized focus on GCC hiring, G&S Consulting ensures that businesses build and scale high-performing teams.
Strategic GCC Workforce Planning
- G&S Consulting develops a tailored recruitment roadmap to align hiring with business objectives, ensuring organizations secure the right tech talent at scale.
- With expertise in talent mapping across industries and tech stacks, they help enterprises build leadership and operational teams suited for long-term success.
- Their data-driven hiring approach minimizes hiring risks and improves workforce stability within GCC operations.
Expertise in Talent Acquisition and Compliance
- Handling over 250 hiring mandates at any given time, G&S Consulting has positioned itself as an exclusive or preferred hiring partner for leading GCCs, including WESCO, First American (India), and GlobalLogic (Hitachi’s Digital Centre).
- Their in-house learning centers keep talent teams updated on evolving technology trends, ensuring enterprises gain access to top-tier professionals across domains.
- With deep knowledge of compliance regulations, they help businesses navigate complex hiring landscapes and adhere to local employment laws.
Driving Operational Efficiency and Scalability
- Leveraging an automated Applicant Tracking System (ATS) and data-backed talent acquisition metrics, G&S Consulting ensures faster and more effective hiring.
- Their industry-leading benchmarks include a turnaround time where 70% of hires are onboarded within 30 days of offer and a 65% offer-to-join ratio.
- By integrating automation and performance benchmarking, they help enterprises optimize their GCC hiring process, improving both cost efficiency and workforce quality.
Navigate GCC challenges with G&S Consulting’s strategic insights and process optimization.
By 2030, 70% of Fortune 500 companies are expected to expand their presence in India through Global Capability Centers (GCCs). However, building a high-performing GCC requires more than just expansion—it demands continuous optimization, technology integration, and a skilled workforce.
As global markets shift, staying competitive means proactively refining operations and scaling with agility. With a well-defined strategy and expert support, enterprises can transform their GCCs into engines of long-term success. Partner with G&S Consulting to build and optimize a future-ready GCC that drives lasting business impact.