Global Capability Centers: Key Hotspots and India’s Rise as the GCC Capital

In the quest for remaining relevant in a world that is swiftly driven by digital transformation and innovation, global enterprises are facing massive shortage of tech talent in their home countries in West or Advanced Asia. Erstwhile remedy of talent mobility through immigration appears difficult today given the political ramifications and complex visa norms. However, with enhanced digitalization and data protection happening within some of the emerging countries, multinational enterprises are appearing comfortable to move their key operations (through captive centers) to mature GCC destinations such as Mexico, Costa Rica, Poland, Hungary, India, or Philippines. On the other side, the world’s leading emerging nations have been investing heavily in creating capabilities to attract captive centers of global multinational firms. In this paper, we will have a look at some of the most popular and advanced GCC ecosystems in the world and understand the benefits that they offer to global enterprises through availability of skilled talent pool, advanced start-up environment, low cost of setting-up business operations, and stable political framework. Today, GCCs have moved up the value chain, delivering a wide array of strategic functions to include research and development (R&D), product development, process innovation, digital transformation, data analytics, and also end-to-end supply chain management. These aspects help multinationals to drive growth even from offshore captive locations, unlike in the past where only the HQ offices were seen as delivering strategic growth drivers.

Amongst all GCC countries we compared, India emerges as a strong ecosystem that cannot be ignored given its vast tech talent pool, third largest tech & start-up ecosystem, innovation & R&D capabilities, and lowest cost. Interestingly, India has a deep history of offshoring industry for technology or business process management. In the last 25 years, with every passing black swan event globally – vis-à-vis the Dot.com bust, global financial crisis, and Covid-19 pandemic – India’s GCC ecosystem has been increasingly relied upon by world’s finest enterprises. Cities such as Bengaluru, Delhi-NCR, Chennai, Hyderabad, Pune and Mumbai are viewed as sophisticated destinations for setting-up global capability centers of multinationals. Cushman & Wakefield (C&W) has become the first service provider to launch a GCC Advisory platform that strives to assist global occupiers establish their captive-offshore shared services, R&D or CoE capability within APAC and South Asia. The choice of location is crucial for GCCs in determining the right business ecosystem and talent availability, as these are increasingly looked upon as the engine of future growth by the HQ. The C&W GCC advisory platform would be a need-based, fit-for-purpose solution, which would foster an Assisted D-I-Y model, delivered by ecosystem of partners in fields of real estate, taxation, legal/regulatory, human resource, and technology.

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Key Hotspots and India’s Rise as the GCC Capital

Mexico, India, Costa Rica, Poland, Hungary, Philippines – a comparison of their USPs and business ecosystem

Interestingly, some emerging countries such as Mexico, India, Indonesia, Poland, Costa Rica, and Philippines have STEM or tech talent pool that is highly desirable by global enterprises. These nations have, over the years, established healthy presence of large tech, R&D and BPM centers of business conglomerates from headquarter nations in the USA, UK and Europe. Not only this, but their pro-active governments have tried to also establish a conducive business environment that help foster innovation, thereby attracting a larger share of global captive offshoring centers.

The ultra-fast pace of digital adoption across the world has once again re-surfaced the need for global enterprises to constantly engage in R&D and product innovation to stay relevant and competitive. Covid-19 pandemic gave further impetus to this trend with digital adoption witnessing a steep rise within a short span of time.

Global Business Innovation Sustainability Index 2023

Digital Adoption Swells post-Covid: Avg. share % of customer interaction that are digital

Innovation/ Digital

Business

Life

DEI

Sustainability Super Cities Overall Rank

9.67

9.34

6.19

5.32

2.5

10

2

India

70

9.56

8.58

6.41

7.5

4.56

7.71

14

Poland

8.26

7.71

5.65

8.15

3.58

9.45

15

Philippines

60

9.89

8.04

2.5

8.58

8.47

2.17

28

Costa Rica

50

7.82

7.17

5

9.02

1.84

9.02

29

Mexico

8.91

6.41

6.84

6.84

5.32

3.36

30

Hungary

40

Source: Tholons Global Business Innovation Sustainability Index, 2023 About the index: Over 40 evaluation metrics have been used under the broad categories of Business, Life, Innovation/Digital, DEI, Sustainability and Super Cities to evaluate close to 200 countries to identify top-50 digital nations pivoting towards the new equitable reality.

30

20

Tholons Global Business Innovation Sustainability (TBIS) Index 2023 is one such measure that compares almost 200 countries worldwide to identify top-50 digital nations that are pivoting towards new equitable reality. According to Tholons, countries such as India have become leaders in the digital transformation of industries and services globally, while few other emerging nations such as Poland, Philippines, Costa Rica, Mexico and Hungary are “vibrant” and “aspiring” towards innovation. These nations are toeing along the lines of advanced economies such as the USA, Canada, UK and France in terms in digital transformation and innovation, as per data in the TBIS 2023 report. Consequently, the world’s finest captive centers, or GCCs, are concentrated in these countries, making them highly discerning for global multinationals in their quest for talent hunt and innovation.

10

Pre-pandemic years

Post-pandemic period

0

2017

2018

Dec-19

Jul-20

Global

APAC

Europe

North America

Source: McKinsey Oct-2020 Global survey of executives

As a consequence of this consistent and sharp rise in digital adoption, the need for skilled talent in the fields of science, technology, engineering, and mathematics (STEM) has been increasing, resulting in its short supply across advanced nations including the USA, Canada, UK, and Europe.

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PROS: • Robust Free Trade Agreements (FTAs) with North America and European Union • Guadalajara is known to be the tech capital of Mexico with high concentration of talent around Software development, Web design, and R&D. • Similar time zone to most destinations in the USA and Canada. • Known globally for its good quality education in computer science. • Flying to Mexico from USA is easy with several hundred flights daily, thereby making it a nearshoring destination. • Mexico is now biggest merchandise trade partner of USA post weakening of US-China relations. PROS: • The capital city of San Jose hosts numerous large technology • enterprises and R&D centers • Costa Rica’s central time zone seamlessly synchronizes with many cities in the US. • Costa Rica is known to be a political stable and democratic country • World Economic Forum: Costa Rican workforce is top human capital in LATAM • Education is affordable and often focuses on STEM fields • Services such as BPO, customer support, IT outsourcing, etc., accounts for ~50% of Costa Rica’s exports.t weakening of US-China relations. Poland has a significant IT workforce within CEE region, with over 400k software developers compared to 200k in Ukraine and 80k in Hungary. • Poland has 14 major SEZs where investors receive tax incentives to promote technology sector. • All the EU member states, Poland included, subscribe to the same IT offshoring regulations. • General Data Protection Regulation (GDPR) is central regulation in EU for IT offshoring weakening of US-China relations. PROS: • Poland has negligible time difference with European countries. •

CONS: • Mexico’s major weakness is its political & regulatory stability and rule of law framework. • Need for more incentives to entrepreneurs and start-ups, and for firms to file IP trademarks and patents. • Relative lack of venture capital deals in Mexico. • Mexico’s tax laws are bit complex • Salaries in Mexico higher than offshoring locations in rest of LATAM or South Asia.

Mexico

Costa Rica

CONS: •

Complex tax systems

• Few cities have slightly relaxed approach to deadlines • Few cities in Costa Rica may face language barrier issues • Ensuring compliance with international laws on data security and IP can be complex • Costa Rica is a small country, and so the number of skilled soft ware developers or programmers is low

Poland

CONS: •

Risks to political stability is elevated owing to coalition’s diverse ideologies, although it is expected that the new government will last its full term until 2027 • Labour costs are relatively low compared to European counter parts, but high when compared to India and China

India

PROS: •

CONS: • Relatively weak IP or trademark protection laws compared to some comparable nations • Indian tax systems, though improving, can be complicated for certain multinationals. • Ranks 63rd in ease of doing business while Poland ranks 40th

Highest STEM graduates in the world, after China

• Risks to political stability is limited owing to high domestic approval rating of current prime minister. • World’s largest ICT exporter, helping it position itself as an attractive tech ecosystem. • Cost of skilled labor is amongst lowest globally • English is considered as first language for business • World’s third largest start-up ecosystem, thereby attracting massive VC deals every year. • eakening of US-China relations.

Philippines

PROS: •

CONS: • While competitive, navigating tax regulations may be complex for foreign corporations • Intellectual property rights / protection is improving but faces challenges • Talent pool in specialized STEM fields may be smaller compared to countries such as India

Philippines ranks as third-largest English-speaking country worldwide; 95% of population is able to speak in English. • Philippines authorities ensure protection of every individual and business through the Data Privacy Act, 2012 • The Special Economic Zone Act oversees foreign investments such as BPO and promotes them inside special economic zones. • Philippines currently enjoys a stable political environment, following a history of authoritarian rule, uprisings, and coup attempts. •

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Considering setting up GCC operations with 1,000 employees, the cost of talent has been determined using a commonly observed hierarchical bifurcation starting from leadership, down to mid-managerial positions and support functions, as exhibited in the adjacent chart.

Assumption: Break-up of Human Resource by Seniority / Payscale

2%

LEADERSHIP

10%

15+ YRS (SENIOR)

15%

10-15 YRS (MID TO SENIOR)

30%

10-15 YRS (MID)

For an occupier who is considering setting up GCC operations overseas, four major cost components must be broadly investigated:

35%

0-5 YRS (ENTRY-JUNIOR)

8%

SUPPORT FUNCTIONS

Human resource, or talent

Leasable Area per Employee (sft.)

120

Six Indian cities^ avg.

Office occupancy cost (Rent + Common Area Maintenance, or CAM charges),

107

Philippines (Manila)

116

Mexico (Mexico City)

116

San Jose (Costa Rica)

116

Bogota (Colombia)

Fit-out cost

100

UK (London)

108

Budapest (Hungary)

108

Warsaw (Poland)

Facility Management cost

191

Seven US cities^^ avg.

^Indian cities - Bengaluru, NCR-Delhi, Mumbai, Hyderabad, Pune, and Chennai ^^USA cities - San Francisco, New York, Atlanta, Dallas, Austin, Boston, and New Jersey Note: For US cities, the leasable area per employee ranges between 160 to 225 sq. ft. per person across the cities considered in our study.

In this chapter, we will be looking at comparing the four major cost components across 9 countries that also includes GCC host nations of the US and UK, alongside nations that are popular recipient of it, spanning regions across America, Europe, South Asia, and ASEAN. Within these nine countries, we take a closer look at 20 cities that are known to be gateway cities for businesses in their respective countries, and most of these have received biggest influx of GCC firms over the years. The section entails a comparative analysis of the total cost of operations (TCO) of a GCC set-up across the featured 20 cities, also having a look into its break-up in terms of talent cost and real estate cost of operations (RECO).

The average office space per employee (i.e., office density) can vary across regions, thereby having an influence over the total cost of setting up GCC operations. For the US and European cities that we considered, office density typically stands at 150 sft. per employee on average. On the contrary, the space required per person is much lower on average across Grade-A buildings in South Asia and ASEAN economies such as India and Philippines even when considering the decrease in density that has been observed post-pandemic in these erstwhile high-density office markets. We have considered these averages for arriving at total cost across comparable cities.

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Key Hotspots and India’s Rise as the GCC Capital

Talent Cost across world’s GCC hotspots, relative to San Francisco in USA (Base city = San Francisco = 100%)

100%

90%

80%

70%

60%

50%

40%

30%

20%

As per our analysis, the cost of operating a 1,000 member GCC team (i.e., only the human resource cost) in San Francisco, which is the most advanced tech ecosystem in the world, stands at ~USD 162 million. The same talent cost in other major cities in the USA and UK such as Boston, London, New York, and Austin could be 15-40% lower than San Francisco. Outside of the USA, cities in neighboring countries such as Mexico City have been a traditional hotspot for American firms to set-up offshoring units, thereby inflating it’s talent costs significantly. The cost of acquiring talent in Mexico City is comparable to costs prevailing in lesser expensive American cities such as New Jersey and Atlanta. At the other spectrum lies cities in India, where there is abundance of tech talent available and cost of desired talent pool is merely 17-18% of the cost applicable in San Francisco, thereby rendering India as a highly attractive consideration for multinationals. Therefore, cost of talent for a similar 1,000-member GCC team in “India’s Silicon Valley” of Bengaluru is likely to be ~USD 29.5 million, which is less than one-fifth the cost likely to be incurred in San Francisco. In addition to talent cost, the real estate cost of operations (RECO), which includes office rent, CAM charges, fit-outs and facility management, in San Francisco city stands at ~USD 24,284 per employee per annum. The financial capital cities of US and UK, i.e. New York and London, stand at 108% and 70% of the RECO applicable in San Francisco, thereby completing the top-3 most expensive real estate markets, while most other US cities are cheaper by 40-50% relative to San Francisco. Once again, the top-6 metropolitan cities in India turn out to be cheaper by 85% on average compared to San Francisco, thereby making them collectively the cheapest in comparison to all GCC hotspots across the world.

10%

0%

Real Estate Cost of Operations (RECO): GCC Hotspots relative to San Francisco (Base city = San Francisco = 100%)

120

100

80

60

40

20

-

Note: the total cost of operation is derived on a per annum basis assuming one full year of operation with a 1000-member team.

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Key Hotspots and India’s Rise as the GCC Capital

As per these derivations, the total cost of operating a 1000-member GCC operations team in San Francisco (USA) is estimated to be USD 186,214 per employee. San Francisco is the most expensive amongst our comparable universe of cities. On the contrary, the South Asian region is amongst the cheapest to operate a GCC. For instance, the same cost for Bengaluru stands at USD 33,083, which is less than one-fifth the cost applicable in San Francisco.

When benchmarked to San Francisco, some cities within the USA such as New Jersey, Dallas, Austin and Atlanta are much cheaper, commanding only 55-70% of TCO applicable in San Francisco. Those USA cities that are close on the heels of San Francisco include New York and Boston that are merely ~20% cheaper to operate from. Outside of the US, the Central European cities of Warsaw and Budapest are much cheaper, costing merely 17-25% of the cost prevailing in San Francisco. Cities in Central and Southern America such as San Jose and Bogota also fall in the same range as Central Europe. The six metropolitan cities of India, however, that also hosts bulk of the GCCs that are present in India, account for merely 17-18% of the TCO applicable in San Francisco, rendering them the cheapest of all GCC countries worldwide.

TCO Analysis for GCC operations with 1000 employees: San Francisco & Bengaluru

Total Cost of Operations (TCO) per employee

Talent cost (% of overall TCO)

RECO (% of overall TCO)

Cost Items

San Francisco

$186,214

87%

13%

Total Cost of Operations (TCO) for a 1000-member GCC across cities (Base city = San Francisco = 100%)

Bengaluru

$33,083

89%

11%

120

Note: RECO = Real Estate Cost of Operations, includes Office Rent, CAM, fit-out and facility management expenses as per C&W internal research. Talent costs have been procured through secondary research and validated from human resource consultants.

100

80

The biggest component of this derived TCO analysis can be attributed to talent (87-90%), followed by the real estate cost of operations (RECO), which stands at 11-13% for both, San Francisco and Bengaluru. Baring few cities out of the 20 that we compared, this cost bifurcation broadly remains in the similar range.

60

40

20

-

12

13

GLOBAL CAPABILITY CENTERS:

Key Hotspots and India’s Rise as the GCC Capital

Cost Arbitrage: Total Cost of Operations (TCO) (Per Employee Per Annum Basis)

As one can notice, each geographical region has presence of few GCC hotspots, and it was potentially created that way to enable near-shoring of support functions from headquarters in the US, UK or Europe. However, as digitalization flourished across the emerging world, countries falling in other time zones have also become equally attractive. South Asian economies such as India and Philippines have been at the forefront in terms of benefitting from offshoring. Today, these two economies have become mature GCC destinations owing to its vibrant pool of tech talent, pro-active government policies, stable politics, and cost competitiveness. India has been attracting high amount of attention from global enterprises not only owing to its vast talent pool, but also due to its huge and fast-growing market size. Cities such as Bengaluru, Hyderabad, NCR-Delhi, Chennai, Pune and Mumbai offer an ecosystem that breeds a culture of innovation and niche talent pool, and the cost of GCC operations is also merely a fraction. As a result, the country is already home to nearly 50% of all GCCs worldwide, further fueling a virtuous cycle of product as well as process-oriented innovation.

146,653

45,855

144,816

30,786

186,214

33,570

85,882

63,416

40,270

33,083

39,251

APAC

NORTH AMERICA

• All values are in USD • Data calculated is on “Per Employee” basis across cities • TCO is a mix of costs w.r.t. office rentals, CAM, fit-outs, talent and facilities management

EMEA

SOUTH AMERICA

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Key Hotspots and India’s Rise as the GCC Capital

India has emerged as a dominant GCC hub, hosting over 50% of all GCCs globally. The annual influx of GCCs into India surged from 60 during 2010-15 to over 75 in 2015-23, and the expectation is that this number is poised to reach ~120 annually. GCCs now play pivotal role in innovation across diverse sectors such as technology, engineering, manufacturing, BFSI, and healthcare, by leveraging India’s extensive talent pool in STEM and AI.

India pivots at Crucial moments to create Growth Opportunities

World (Annual GDP Growth)

India (Annual GDP Growth)

20 MSF Gross Leasing (Avg 2000-02)

30 MSF Gross Leasing (Avg 2005-08)

34 MSF Gross Leasing (Avg 2010-11)

68 MSF Gross Leasing (2019)

80 MSF Gross Leasing (2024)

12

10

8

6

In each of these three black swan events, global corporations have had to grapple with potential consequences related either to technology disruptions, imbalances in jobs or talent, pressure for cost control, and environmental, health & wellbeing concerns. However, what was common throughout these black swan events was the need for inter-dependence of the advanced economies in America, the UK and Europe, with aligned nations in the emerging world such as India. Interestingly, enterprises in India played a crucial role for multinationals in the advanced world while seizing challenges posed during the global black swan economic events.

4

2

Annual GDP growth (%)

0

-2

Y2K

COVID-19

GFC

-4

Y2K: Two digits, one big glitch

Pandemic: World on pause - virus on move

GFC: Stocks crumble, Firms falter

-6

• Systems failure, redundancies • Back office and business support • IT support services and help desks • Share of IT in India’s GDP at 1.2%

• Increased focus on innovation led competencies • GCCs driving new tech & automation • Global leadership & growth in newer markets • Share of IT India’s GDP at ~8%

• Cost pressures for global firms • Growth of Shared service hubs / Captives • Digital transformation, building product and service capabilities

COST ARBITRAGE

BUSINESS IMPACT

INNOVATION IMPACT

VALUE

DELIVERY EXCELLENCE

BPO EMERGENCE

SHARED SERVICES CENTERS GROWTH

GLOBAL CAPABILITY CENTERS

Source: IMF, World Bank, NASSCOM, Cushman & Wakefield Research

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Key Hotspots and India’s Rise as the GCC Capital

Impacts of three black swan events on Indian offshoring and tech industry over the years –

Post dot.com/Y2K Impact

Post-GFC Impact

Accelerating GCC ecosystem

Export revenues in the indian IT Industry (US$ bn)

India IT-BPM revenue growth (in USD million)

Post-Covid 19: Rise in no. of GCCs enterning India

Avg. 120 GCCs to enter India p.a

50.91

160

140

Avg. 75 GCCs enter India p.a

120

2100+

100

Avg. 60 GCCs enter India p.a

1600+

80

18.05

60

1000+

700+

40

20

0.63

3.71

-

2008 2009 2010 2011

2012 2013 2014 2015

1995

2000

2005

2010

2010

2015

2023

2028E

Total no of GCCs

Source: RBI

Source: NASSCOM Data

A gradual evolution of IT-BPM industry in India over last -25 years, later culminating into a sophisticated GCC ecosystem

Over the last 25 years, when three black swan events significantly impacted global GDP, Indian enterprises were instrumental during each crisis, leveraging on their IT capabilities and STEM talent pool. Today, India plays a critical role in multinational corporations’ quest for digital transition, underscoring its strategic significance in fostering business resilience and driving innovation.

suggesting that there are good opportunities created within the start-ups and GCCs in the country. Consequently, Bengaluru’s tech workforce ratio compared with that of Silicon Valley, USA stands at 3.6:1 today, thereby highlighting the scale of talent available in the country. India is home to largest pool of STEM (Science, Technology, Engineering and Mathematics) talent in the world, following China, with an estimated 2.55 million annual STEM graduates (2020 est.). Besides, NASSCOM estimates that India has the third largest pool of AI talent globally with a 16% share, and this pool continues to grow. A think tank of Paulson Institute, USA – MacroPolo – mentions that India is the third largest origin of top-tier AI researcher, after USA and China, and the ability of the country to retain this talent has grown immensely over the last 4-5 years

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GLOBAL CAPABILITY CENTERS:

Key Hotspots and India’s Rise as the GCC Capital

Top sources for STEM graduates in the World

Country of origin of most elite AI researchers

28%

28%

4%

7%

2%

5%

26%

USA INDIA CHINA FRANCE CANADA GERMANY OTHERS

Source: Center for Security and Emerging Technologies, USA

Source: MacroPolo – Paulson Institute, USA’s think tank

of the Fortune 100 present in India; many now have their largest or 2nd largest center in India (outside of US) 60%

Few examples of American GCCs in India spearheading innovation

GE has 6,000 scientists in India; 60-70% of patents filed by GE are from India

50% of Lowe’s global tech workforce operates from the innovation center of India

AMERICAN HQ BRINGS EXPERIENCE, GOVERNANCE AND STRATEGIC FRAMEWORKS

INDIA HQ / GCC DRIVE INNOVATION, CREATIVITY AND PRODUCT TRANSFORMATION

3000+ FTEs involved in it services, global business services and R&D in India

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Key Hotspots and India’s Rise as the GCC Capital

Increased Diversification over last One Decade

Enterprises from the USA continue to dominate the Indian GCC space with nearly 67% share, although shares of enterprises from EMEA and APAC is fast-growing as observed over the last 5 years. Also, large enterprises with more than USD 50 billion revenue were predominantly riding the GCC wave in India prior to 2020. However, that seems to have flipped with nearly 55% of the new GCCs been accounted for by sub-USD 10 billion firms in the most recent 3 years (2021-23). Smaller enterprises are beginning to realize the need for tapping into offshore locations such as India to bridge the wide gap in talent availability and costs.

India is no longer seen as an offshoring / product development center for merely the tech-oriented or business process management companies. Share of sectors such as Engineering & Manufacturing (E&M), BFSI and Healthcare have moved up significantly in the last one decade within the GCC space. More recently, there is a much larger share of E&M (>1/3rd) and BFSI (18%) companies setting-up innovation or R&D centers in India.

42%

35%

30%

20%

18%

16%

15%

11%

6%

6%

IT-BPM IT-BPM

Engg. & Mfg. Engg. & Mfg

BFSI BFSI

Healthcare Healthcare

Others Others

2014 & Before 2015-2023

Source: NASSCOM, Cushman & Wakefield Research

Distribution of GCCs in India Based on HQ Location (2023)

GCCs Influx into India - Split by Revenue Size

55%

22%

1025

39%

840

24%

21%

18%

18%

32%

434

16%

330

9%

51%

121

>50 BN

25-50 BN

10-25 BN

<10 BN

80

2020 & Before 2021-2023

% of GCCs

AMERICAS

EMEA

APAC

*This chart represents shares within the top 100 GCCs in India by footprint, and these account for >50% of total GCC footprint in India

Source: NASSCOM, Cushman & Wakefield Research

28% GCCs set up in last 2 years have HQ in US

28% GCCs in India are from Europe

51% Growth in Asian Firms setting up GCCs in India

55% GCCs set up in last 3 years are firms with <$10 Bn revenue

2/3rd GCCs set up in 2022 23 are small first-time entrants in India

<10% GCCs set up in last 3 years are firms with >50Bn revenue

Source: NASSCOM, Cushman & Wakefield Research

Note: The revenue-split chart is representative of the top 100 GCCs in India, and these account for >50% of the GCC footprint in the country

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Key Hotspots and India’s Rise as the GCC Capital

EXPERTS IN YOUR TIMEZONE! Resident partners wherever you are

We’ve combined US-based strategic advisors, with operation and delivery experts in India, supported by a client solutions hub - resulting in seamless advisory & delivery excellence across continents and time zones.

A traditional approach for setting-up operations in India is using the Built-Operate-Transfer (BOT) model, which is similar to outsourcing of the business operations to either large tech firms, management consulting firms, or boutique players that white label clients’ GCC operations. Such contracts are often done for a fixed tenure, post which the turnkey GCC set-up is transitioned back to the original brand. During the contract period, the client is assisted with establishment of operations and also drive innovation. Built-Operate-Transfer (BOT) model

A DEDICATED TEAM OFFERING ALL REAL ESTATE SERVICES Integrated Service Delivery

Global in-depth advisory & execution capability across all aspects of real estate decision-making incl. leasing , facilities management, project and development services and more.

D.I.Y. Model

The Do-It-Yourself model – or D.I.Y. model – is unarguably the most rigorous, although the client is able to take control of the costs, company culture and other aspects right from day one. This model results in the client going on an expedition in its attempt to set-up operations in the country, often working with self-appointed experts on the way.

We’re disrupting the BOT model! Through a strong ecosystem of partners, we offer an assisted DIY model, empowering you to craft your strategy for innovation-cost-carbon-culture. From talent management to legal expertise, banking, and payroll solutions, and more - we put the power back in your hands. A NEEDS-BASED SOLUTION, THAT DOESN’T HOLD YOU CAPTIVE. Assisted DIY Model

Through a strong ecosystem of partners, Cushman & Wakefield is ready to offer an assisted D-I-Y model to clients that will empower them to craft a strategy for innovation-cost carbon-culture, co-tailored to unique for setting-up GCC in India – from Talent management, legal expertise, banking, IT and payroll solutions, and more. The Assisted D-I-Y Model (pioneered by C&W)

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Key Hotspots and India’s Rise as the GCC Capital

Over the years, select countries such as India, Philippines, Mexico, Costa Rica, Hungary, and Poland have advanced in value chain from been the largest business process outsourcing hub, to now becoming a mature ecosystem for GCCs of multinationals. With over 2 decades of well-established offshoring industry and availability of vast tech talent pool, India is home to over half of all GCCs present in the world, and the driving factor for this include abundant talent availability, low cost, advancement on sustainability, and quality grade-A real estate developments. For multinationals considering setting up GCC operations overseas, factors such as talent, real estate, fit outs, and facility are important cost considerations. We looked at these as pects of total cost of ownership (TCO), and compared amongst GCC economies such as Mexico, Costa Rica, Poland, Hungary, Philippines etc. The Indian cities of Bengaluru, Mumbai, Delhi-NCR, Pune and Chennai emerge strong, underpinning their significance in the global trade of high-value services. Besides costs, multinationals will have to choose between available operating models for setting-up GCCs i.e. Built-Operate-Transfer (offered by large management and IT consulting firms), self-driven model for setting-up operations, and a third model called the Assisted D.I.Y model offered by Cushman & Wakefield (C&W). In the Assisted D.I.Y. model, C&W takes full accountability for primary business location advisory, while its strong network of partners offer assistance for talent management, legal and taxation advisory, thereby empowering firms of all sizes to own & craft their own strategy.

Today, multinationals must constantly look for innovation in business to stay relevant as disruptions to macroeconomy and business environment occur at high frequencies under a rapidly changing technology ecosystem. Global Capability Centers (or GCCs) are proving effective for MNCs to mount a business continuity plan by tapping into human resources and technology ecosystems prevalent in other growth-oriented economies. Unlike outsourcing, having a captive center (or GCC) ensures reasonable control over corporate governance, values, and sensitive company data, while immensely benefiting from the opportunity to inculcate dual-core strategy that harmonizes strategic thinking of the parent firm, with creative dynamism & agility of their offshore hubs.

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Key Hotspots and India’s Rise as the GCC Capital

ANSHUL JAIN Chief Executive - India, SE Asia & APAC Tenant Representation Services anshul.jain@ap.cushwake.com

ARPITA SRIVASTAVA Head Global Capability Center Advisory, New York arpita.srivastava@cushwake.com

VS SRIDHAR Head GCC Advisory - Operations, India sridhar.vs@cushwake.com

AYUSH MALHOTRA Director ayush.malhotra@cushwake.com

SUVISHESH VALSAN Senior Director suvishesh.valsan@cushwake.com

KAPIL KANALA Senior Director kapil.kanala@ap.cushwake.com

KUSHALAPPA KP Director kushalappa.kp@ap.cushwake.com

ABOUT CUSHMAN & WAKEFIELD

Cushman & Wakefield (NYSE: CWK) is a leading global commercial real estate services firm for property owners and occupiers with approximately 52,000 employees in nearly 400 offices and 60 countries. In 2023, the firm reported revenue of $9.5 billion across its core services of property, facilities and project management, leasing, capital markets, and valuation and other services. It also receives numerous industry and business accolades for its award-winning culture and commitment to Diversity, Equity and Inclusion (DEI), sustainability and more.

For additional information, visit www.cushmanwakefield.com