Let us answer some of your questions on GCC
Here to Help
Although our services are generally tailored to each organization’s needs, there are some questions that come up consistently. Read on to find out if we’ve already answered your questions. If you still have an inquiry, please don’t hesitate to call or send us a message - a member of our team will get back to you shortly.
What is a global capability center (GCC)?
A GCC, also known as a global in-house center (GIC), is a subsidiary or a center set up by a multinational corporation in a foreign location, such as India, to leverage talent, reduce costs, and enhance operational efficiency.
Why should we consider setting up a GCC in India?
The main drivers to setup a GCC in India are given below :
-
India offers a skilled workforce, cost advantages, a favorable regulatory environment, robust infrastructure, and access to a large market, making it an attractive destination for establishing GCCs.
-
India has emerged as a powerhouse for business process outsourcing and knowledge services, offering a strategic advantage to companies seeking to optimize costs while maintaining high-quality standards. With a robust infrastructure, a large pool of skilled professionals, and a favorable business environment, India has become the go-to destination for establishing GCCs across diverse industries
-
As per EY’s latest ‘Future of GCCs in India - a vision 2030’ report, it is estimated that the domestic GCC market size will reach US$110b by the year 2030, led by software exports, which remains a key component of India's service exports. It is predicted that by 2030, India will have 2400 GCCs and that number can potentially increase to 2550 as India emerges as the world's technology and services hub. The total number of new GCC set-ups every year can jump up to 115 (from the current 70)
What services can be outsourced to a GCC in India?
GCCs in India typically offer a wide range of services including IT services, research and development, engineering services, analytics, finance and accounting, human resources, procurement, and customer support.
What are the steps involved in setting up a GCC in India?
At a high level, the steps usually involve market research, selecting a suitable location, legal and regulatory compliance, establishing infrastructure, hiring talent, setting up operational processes, and ongoing management. At a more detailed level the activites could include
-
Selection and finalization of a suitable location for the entity.
-
Initial cost estimation for the company's incorporation.
-
Budget planning based on headcount projections.
-
Incorporation of the company.
-
Liaison with vendors for state and national government compliances and registration (GST / Shops and Establishment / PAN / IE Code etc.)
-
Bank account setups and fulfilling KYC norms
-
Transfer Pricing Study
-
Vendor management for finance/book keeping/payroll and auditing.
-
Scouting and securing office spaces.
-
Collaboration with hardware vendors and suppliers.
-
Comprehensive hiring plan, encompassing both technical and non-technical staff.
-
Operational setup and team structure optimization.
-
Setting up of applicable policies (Employee handbook, Leave policy, POSH, Travel & Expense Policy etc.)
-
Agile development process implementation (if applicable)
-
Leadership hiring and training.
-
Handover to the new leadership post-stabilization.
-
Ongoing support and consultation for center operations.
How can we ensure data security and intellectual property protection in our GCC?
Data security and intellectual property protection are critical concerns addressed through robust security measures, compliance with data protection laws, implementing secure IT systems, confidentiality agreements, and access controls
What are the typical cost savings associated with setting up a GCC in India?
Cost savings can vary based on factors such as labor costs, infrastructure expenses, taxation, and operational efficiency. However, studies have shown that setting up a GCC in India can lead to significant cost savings compared to operating solely in developed countries.
What are the challenges involved in setting up a GCC in India?
Challenges may include cultural differences, talent acquisition and retention, regulatory compliance, infrastructure constraints, geopolitical risks, and managing remote teams.
How can we recruit and retain top talent for our GCC in India?
Strategies for recruiting and retaining talent may include competitive compensation packages, career growth opportunities, training and development programs, a positive work culture, and employee engagement initiatives.
Global Capability Centre Consulting team consists of veterans in the IT industry and between us we have close to 75+ years of experience involving services, product development and expertise in global capability model across firms like PwC, Infosys, BearingPoint, Tesco etc. We have also stood up a GCC in Bangalore for a product firm in the US. . From market research and location selection to legal compliance and talent acquisition, we provide end-to-end solutions tailored to your specific needs.
What support services are available for companies establishing GCCs in India?
Best practices include establishing clear communication channels, fostering collaboration between local and global teams, leveraging technology for remote work, continuously evaluating and optimizing processes, and adapting to changing market dynamics.
What are the best practices for managing and scaling a GCC in India?
This would depend on your specific needs. We can look at your requirements and get back to you with the list of activities we need to complete and the timeline for them. Please note that certain activities like incorporation (setting up the legal entity) could take few weeks to a couple of months, whereas activities like setting up physical office space or hiring could vary considerably from client to client
What is the timeline for setting up a GCC in India?
You could go to the Contact Us section of the website, fill in your name and details and send us a short message and we will get back to you
Alternatively, you could call or email Josh Wright at (Phone – +1 610 805 3582) (Email – josh.wright@gmail.com). He is based in Philadelphia, US