Global Capability Centers: 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.

GLOBAL CAPABILITY CENTERS: 26

27

Key Hotspots and India’s Rise as the GCC Capital