BlogWhat Is a Global Capability Center (GCC) and Why Are They Thriving in India?

January 21, 2025by Ashima Khurana

Introduction

Business houses will always try to make their business operation simple, and effective, and maximize their value. And one such great example is how the Global Capability Center in India has revamped the model around which multinational companies operate across the globe. This concept of the GCCs shot off in the last decade; now India stands out as one of the key emerging global hubs for business excellence. We will see this very blog post as we go through the conversation of what a GCC is, why India fast is turning into the hotbed of such centers, and how KNM India leads the charge into utilizing GCCs.

What Is a Global Capability Center (GCC)?

A GCC is a centralized unit located in the backyard of a global company, handling core business processes, such as IT, finance, R&D, and customer care. Compared to the generally understood outsourcing function, GCCs are completely owned and controlled by the parent organization. Hence, they can exercise high control, enhanced efficiency, and more appropriate responsiveness to organizational needs.

Distinct Features of GCCs
  • Centralized Operations: It centralizes the functions into one place and makes operations streamlined.
  • Talent Hub: It brings the best talents on board for such complex and strategic tasks.
  • Innovation and Research: In most cases, GCCs operate as innovation hubs and promote R&D and technological advancement.
  • Cost Efficiency: Utilizing economies of scale, GCCs reduce operational costs with quality. 

Why are GCCs Thriving in India?

This is not a coincidental reason for India becoming a hot favorite among all the GCC destinations. It’s because of the amalgamation of all the international corporations, with which it holds the status.

  1. Human Resource

The largest pool in terms of educational background high-level professionals from all over the globe can be obtained in India, which has led to the 1.5 million engineers’ graduation taking place every year and providing some unmatched reserves to the Gulf Cooperation Council.

  1. Cost Effectiveness

It costs a mere pittance to run a GCC in India, which makes it the lowest cost of all. Low labor cost is an adjunct to high-quality output. Thereby, providing a very high value proposition for business.

  1. Technological Ecosystem

India’s technological ecosystem has become a beacon for innovation and digital transformation, undergirded by an impressive IT infrastructure. Great cities such as Bengaluru, Hyderabad, and Pune have served as their epic centers.

  1. Government Support

These corporate policies and government operations, “Digital India” and “Skill India,” strengthen the GCC India scenario further.

  1. Cultural Compatibility

India has the flexibility along with cultural variations to be able to facilitate the alignment of MNC operations to worldwide standards.

 

Role of KNM India in the GCC Scenario

KNM India is a market leader in the GCC space, and the company is unlocking the untapped potential of Global Capability Center in India corporations by delivering efficient and innovative solutions. Leverage now the unique strengths of India through KNM India as under:

  • Customized GCC Strategies: Solutions developed on the exact requirements of clients.
  • Talent Management: Leveraging the best of Indian professionals ensures top service delivery.
  • Cutting-Edge Technology: Harnessing the most up-to-date technologies to propel innovation and efficiency.
  • End-to-End Support: GCC setup to daily operating management 

Table: Advantages of GCCs in India

ParameterIndiaOther Countries
Talent PoolLarge, highly skilledLimited, specialized
Cost EfficiencyHighModerate to Low
Technological EcosystemThrivingVaries
Government SupportProactiveMixed
ScalabilityExcellentModerate

 

Globally Captive Centres Frequently Asked Questions

Q1: What is the difference between a GCC and outsourcing? 

A: While outsourcing means that various vendors are hired for third-party-specific work, GCC is totally owned and controlled by the parent company. This would provide better control and alignment with organizational goals.

Q2: In which industry GCC is most benefited? 

A: IT, health care, banking, manufacturing, and retail industries have gained a lot of benefits due to GCC as it largely relies on central operations and innovation.

Q3: Why is India considered an even more attractive destination for GCCs? 

A: India has an efficient skill-labor force, low-cost structure, and very good IT infrastructure and even the government supports GCCs.

Q4: What does KNM India do to empower the client to set up GCCs? 

A: One-stop-shop end-to-end services including strategic planning, talent acquisition, technology integration, and operational management for easy setting up and smooth operation of the GCC India.

 

Future of GCCs in India

More investment and technology appear to be paving the way brightly for GCCs in India, and with efficiency innovations in business, demand would rise for such GCCs. KNM India will drive such a future since it will not only drive excellence but also bring unprecedented value to the bottom line.

 

Conclusion

It would revolutionize how the multinationals will work, and among its leadership are nations such as India. Experience for firms like KNM India drew invaluable benefits from this experience that keep the investment pouring into the GCC into India. New business horizons would open up the use of innovation power with GCCs.

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