What are the Different Models of GCC?

Read about the various GCC models—Captive, Hybrid, BOT, Joint Venture, and Outsourced—that empower companies to innovate and expand globally.

Global Capability Centres, or GCCs, are now an important part of how global companies work. If you don’t know what the term means, don’t worry. We’ll break it down for you in simple words so you can understand what they are, the types of GCCs, and why they are important.

What is a GCC?

A Global Capability Centre (GCC) is like a branch of a company set up in another country to handle some of its work, like IT, customer service, finance, HR, data analysis, research, etc.

Know more about Global Capability Centres (GCCs) and how a business can set up a GCC in India.

Why do companies set up GCCs?

There are several benefits of GCC operations. They are as follows:

• Cost saving: Labour and operational expenditure tend to be lower in certain countries.
• Access to talent: Firms are able to access highly qualified professionals within certain areas.
• Round-the-clock activity: Different time zones allow work to continue around the clock, with one office working while another is asleep.
• Innovation and quality: GCCs tend to become centres of excellence, facilitating the enhancement of products and processes.

Also Read: Why Global Capability Centres Are Thriving in India

The Different Models of GCC

When companies decide to establish a GCC, they can choose from various models. These models vary depending on how much control the parent company wants, the type of work they plan to do, and the goals of the centre.

1. Captive Model

The captive model means the parent company owns and controls the GCC in its entirety. The company invests in setting up the office, hiring staff, and managing daily operations. All the work done in the GCC is for the parent company only.

Pros:

• Full control over operations.
• Strong alignment with company culture and goals.

Cons:

• Higher initial investment and responsibility for management.

2. Hybrid Model

A hybrid model is a mix of in-house and outsourced work. The parent company controls some parts of the GCC directly but also works with local partners for certain functions.

Pros:

• Flexibility to use in-house expertise and outside help.
• Can scale operations more easily.

Cons:

• Coordination between in-house and external teams can be tricky.

3. Build-Operate-Transfer (BOT) Model

In the BOT model, a third-party service provider sets up and runs the GCC for a fixed time before handing it over to the parent company. The vendor builds the infrastructure, hires staff, and runs the centre. After an agreed period, the ownership is transferred to the parent company.

Pros:

• Reduces the initial risk for the parent company.
• Easy to enter a new market.

Cons:

• Requires careful planning for the transfer stage.

4. Joint Venture Model

In the joint venture model, the parent company partners with another organisation to run the GCC. Here, both partners share investment, management, and benefits.

Pros:

• Shared costs and risks.
• Access to local expertise.

Cons:

• Decision-making may be slower due to shared ownership.

5. Outsourced GCC Model

Here, a third-party service provider fully owns and runs the GCC on behalf of the parent company. The vendor provides infrastructure, staff, and services, and the parent company focuses only on outcomes.

Pros:

• Minimal management is required from the parent company.
• Quick setup.

Cons:

• Less control over processes and company culture.

Also read: Choosing the right WeWork membership: All Access Plus vs. All Access Pay Per Use

Conclusion

Global Capability Centres are not just cost-cutting aids. They enable companies to innovate, enhance efficiency, and reach more geographies around the globe. GCCs require flexible, scalable, and dynamic workspaces to be successful, and that is where WeWork enters the picture. Whether you’re a start-up GCC or a large captive centre, WeWork workspaces provide the infrastructure and environment to help your team perform at its best.