What Are Global Capability Centres (GCCs) & How to Set Up a GCC in India

Explore how Global Capability Centres (GCCs) drive business efficiency and innovation. Learn the steps to set up a GCC in India and why it's a preferred global hub.

A Global Capability Centre (GCC) is a subsidiary created by multinational companies to oversee and perform certain business functions. The centres perform multiple operations, such as IT services, finance, customer care, research and development and others. GCCs have made India a leading destination for international corporations. The GCC works to utilise local talent, minimise operational expenses and improve business service efficiency.

How can a business set up a GCC in India?

The following are the major steps to set up a GCC in India:

• Define scope and objectives: Establish the tasks and purposes of the GCC and align them with the strategic vision of the parent company.
• Choose the right place: Pick a city that has the desired talent pool, infrastructure, and business climate.
• Comply with the rules in India: Follow the legal regulatory environment in India, such as company incorporation, tax and labour laws.
• Develop a talent recruitment plan: Recruiting and retaining qualified experts, considering regional recruitment trends and compensation scales.
• Establish infrastructure: Develop physical and technological infrastructure to support operations.
• Set up governance and management structures: Establish leadership positions, reporting levels, and performance measures to enable effective management.

Also Read: Decoding Early-Stage Funding in India: What Founders Should Know

Structure of GCCs

The organisational structure of a GCC is generally an extension of the parent company's structure, with diverse departments and functions. Some of the important elements are:

• Functional teams: Specialised teams working on dedicated business functions like IT, finance, R&D, customer care, and analytics.
• Centres of excellence (CoEs): Specialised entities within the GCC that champion innovation, best practices, and process excellence in specific areas.
• Support services: Teams that undertake HR, administration, and compliance functions to make operations seamless.
• Leadership and governance: A management level that assures alignment of the GCC's goals with the parent organisation's strategic objectives and monitors performance.

Role of GCCs

GCCs perform a vast array of roles, including:

• Technology development: Application development, IT support, and digital transformation projects.
• Business operations: Process optimisation, supply chain management, and operations support.
• Finance and accounting: Financial analysis, reporting, and compliance.
• Human resources: Talent sourcing, employee motivation, and training initiatives.
• Research and development: Inventing new products, market research, and innovation in new technologies.

Advantages of setting up GCCs in India

• Availability of skilled manpower: India's immense talent pool of professionals in different fields allows businesses to form high-quality teams.
• Cost-effectiveness: Lower costs of operations relative to Western nations enable businesses to make substantial cost savings.
• Scalability: Ability to increase or decrease operations as per business requirements.

Also read: How to start a business in India?

GCC Hubs in India

India has become a hotspot for Global Capability Centres. There are more than 1,700 of them engaged in businesses such as banking, shopping, health, and factories. Picking the appropriate city is quite crucial to commence a successful GCC. Some of the GCC hubs in India are-

• Bangalore: IT, AI, and R&D hub with an active startup culture and a high concentration of multinational companies.
• Hyderabad: Lower costs, developing IT space, and active government support. Housing major technology players.
• Pune: High technical talent pool for IT and engineering. Lower costs as compared to Bangalore. Strong research centre.
• Chennai: Suitable for manufacturing and IT processes. Strongly developed infrastructure and industrial base.
• Mumbai: Financial centre. Appropriate for banking, finance, and consulting GCCs. Houses the headquarters of major financial institutions.
• Gurgaon/Noida: Favourable business policies. Proximity to Delhi and international airports. Sizzling corporate growth.

Why are GCCs popular in India?

Global Capability Centres have become popular due to their tangible impact on international business operations and driving digital disruption. With growing dependence on technology and efforts by organisations to source global talent, GCCs deliver a formal strategy to innovate and enhance service excellence. The value proposition of GCCs in facilitating technology-driven talent solutions and achieving business objectives has placed them firmly in the minds of business leaders globally.

What is the future of GCCs in India?

The future of Global Capability Centres in India is extremely bright. Big cities such as Bengaluru, Delhi, Hyderabad, Chennai, and Mumbai already have numerous GCCs. However, even the small cities such as Visakhapatnam, Jaipur, and Coimbatore are coming into the limelight. These cities have improved roads, buildings, and internet connectivity now. In the next few years, GCCs will attempt to work more quickly and easily by employing new technology and intelligent tactics, creating new jobs. This will enable India to develop and attract more global firms.

Also read: How India is Reshaping the Global Startup Ecosystem

Conclusion

Setting up a Global Capability Centre in India is a strategic imperative for businesses to improve. When looking at infrastructure for your GCC, the decision to have a flexible and well-furnished workspace is very important. WeWork provides various workspace solutions that address the specific requirements of GCCs, delivering contemporary amenities, scalable space, and an open environment to encourage innovation and productivity.

FAQs

What is the difference between a GCC and outsourcing?

A GCC is a centre created and owned by the parent company. The company has control over everything, and it functions exactly like a part of the head office. Outsourcing refers to assigning work to another company to perform. That company is not owned by the parent company. So, the parent company has less control over the work.

How long does it take to start a GCC in India?

It takes time to start a GCC in India. It would vary depending on where you would like to construct it, how quickly you can obtain permission, and arrange your office. Generally, it would take 6 to 12 months to get started.

What are the things to consider while starting a GCC in India?

There are a few things to keep in mind while starting a GCC in India, including comprehending and obeying Indian rules and laws, adapting to the local work environment, employing and retaining quality employees, and ensuring new team members get along with the core company.