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What Are Global Capability Centers? A Comprehensive Guide

With increasing connectivity in the world of business, there is this always-sought quest to optimize business functions so that costs can be reduced and a global talent pool can be tapped. All of these goals are answered most effectively through GCC- Global Capability Centers. And it becomes an anchoring point for multinational companies for the centralization of strategic functions, innovation, and top-up positioning in the market.

This article will elaborate upon what global capability centers are, their benefits, and why they have become so extremely popular amongst Indian and international business corporations.

What Are Global Capability Centers (GCCs)?

A GCC is established precisely as a unit that companies place elsewhere, perhaps cost-effective, and would run for specific business purposes. All these centers handle an eclectic mix of operations, from IT services to finance, human resources, R&D, to even customer support.

Formerly captive centers, GCCs are strategic centers that drive business transformation and innovation. They make the organization achieve operational excellence by making use of the local talent and resources and keeping control of the core functions.

Role of GCCs in Modern Business

1. Cost Optimization

The key reasons why companies form GCCs are low-cost operations. Such facilities can help in saving money significantly without having to sacrifice the quality of work in areas where labor and infrastructure cost are low.

2. Global Talent Access

With the help of GCC, businesses access diverse expertise much easier in most cases with developing markets such as India. Once the talent is accessed, then efficiency and innovation are increased.

3. Coordinated Activities

Centralization of function is a form of mechanism, and consolidating it in relation to GCC has been aiding an enterprise to strengthen its capabilities of managing processes, among other factors, so that the services they are supposed to provide do not look heterogeneous.

4. Innovation and Research

As most of the GCCs are in R and D and therefore keep firms at the leading edge of the marketplace, here they come with newer goods and services, capturing market moods.

5. Better Risk Management

GCCs play a very important role in business continuity planning. Diversity in operations across geographies will be useful in mitigating risks that are associated with political instability, natural disasters, or economic meltdown in one region.

Key Functions of GCCs

Depending on the requirements of the organization, there are many functions being undertaken by Global Capability Centers. Some common functions include:

  • Information Technology: IT infrastructure management, software development, and cybersecurity
  • Finance and Accounting: Bookkeeping maintenance, financial analysis, and reporting on compliance
  • Human Resources: Recruitment, payroll, employee engagement activities
  • Customer Support: Customer service and technical support to customers in multiple languages.
  • Supply Chain Management: procurement, logistics, and management of inventory
  • Analytics and Data Science: Strategic decision-making through big data analytics

Why India is a Preferred Destination for GCCs

The global headquarters of GCCs are quickly gaining in India. The world’s biggest companies would love to shift their GCC and land here to set one up in India. The reasons being:

1. Skilled Workforce

India has adequate numbers of highly qualified employees in the IT, engineering, and even finance sectors. This is one of the primary reasons why companies began to opt for establishing a GCC in the country.

2. Cost Efficiency

The labor cost and the infrastructure in the country are much cheaper compared to developed nations, which makes it an excellent site for businesses looking to reduce costs.

3. Governmental Policies

India has enacted several policies to attract foreign investment through tax benefits and streamlined regulatory procedures for GCCs.

4. Technological Innovations

Being a country with a strong IT infrastructure that is gaining more interest in innovation, India makes it an ideal destination for GCCs.

5. Cultural Fit

India is culturally adaptable, and most Indians are bilingual, so companies can easily assimilate their GCCs into global operations.

Implementation and Managing GCCs

Globally accepted for all its advantages, the implementation and management process is not without challenges:

  • Regulatory Compliance: Foreign companies always have a challenge in handling local laws and regulations.
  • Talent Retention: Attrition rates are very high in some industries, causing instability in GCC operations.
  • Cultural Integration: Plan and then deliver the same cultural integration of GCC with the parent organization
  • Technological Infrastructure: Strong IT systems and good cyber security for GCC

How Quartis Consulting LLP supports GCCs

We at Quartis Consulting LLP  provide support in setting up a global capability center of a business while helping to run it by addressing the problems that specifically impact the Global Capability Center. 

Our Offerings:

  • Feasibility Study: Our detailed research will determine the appropriate location and activities for your GCC.
  • Regulatory Compliance: We ensure your GCC is perfectly compliant with the local legislation and brings the risks to a bare minimum.
  • Talent Acquisition and Management: We help you hire and retain the best talent to operate your GCC operations.
  • Process Optimization: We help optimize your GCC through streamlined processes and best practices.
  • Technology Integration: From setting up IT infrastructure to cybersecurity, we have end-to-end technology solutions for your GCC.

Conclusion

GCCs have become an integral part of new-age business strategy in this modern world and give unmatched cost efficiency, access to talent, and innovation. Businesses are going to continue their worldwide expansion, and GCCs will play a much more important role in driving growth and competitiveness.

We unlock the real GCC value for organisations at Quartis Consulting LLP, and expertly, with bespoke solutions, we ensure your GCC not only reaches but exceeds the strategic objectives set up. Invest in your future business today through our global capability centre. 

With Quartis Consulting LLP, you’re ready for everything.

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