What is a Global Capability Center (GCC)?
A global capability center (GCC) is a centralized facility that is in a lower-cost geographic location. It provides shared services, support, and expertise to other parts of a multinational organization. The GCC centers aim to standardize processes, leverage economies of scale and enhance organizational efficiency and effectiveness by consolidating resources and expertise in one location.
A global capability center acts as a captive entity that handles different operations, such as contact centers, support, back office, etc., and IT support to enhance the functionalities of a particular organization. It was earlier associated with back-office operations but later evolved into value-added critical business operations that help drive global functions.
According to Deloitte, GCCs have transitioned from being the cost drivers to strategic value creators and business enablers in present times.
What is the Significance of a GCC?
Global capability centers help improve enterprise resilience and cater to customer expectations efficiently. The digital operations of a particular organization depend on collaboration and agility. So successful digital enterprises focus on delivering efficient customer experiences through front-end strategies that move fast and positively influence business growth.
However, transaction-focused strategies cannot function at the same speed because they may face several barriers, such as contractual fine-prints, regulations, data protection laws, and compliance obligations.
So, GCCs enable organizations to develop a flexible and agile architecture that helps enable high-speed deliverables, rapid response, and shorter release cycles.
What Services Does a GCC Provide?
A global capability center aims to support the organization's operations by providing cost-effective and high-quality services and expertise. The services provided can help the organization to standardize processes, improve quality, reduce costs, and increase efficiency.
Here is a breakdown of services provided by GCC.
Business Process Outsourcing (BPO)
It includes the offshore delivery of various business processes, including finance and accounting, human resources, customer service, and supply chain management.
Information Technology (IT) Support
It involves IT support and maintenance for the organization's infrastructure and applications, including software development, testing, and deployment.
Data Management and Analysis
It comprises the collection, management, and analysis of large amounts of data to support decision-making and improve business processes.
Customer Support
It involves providing assistance to customers via phone, email, or chat in a range of areas, such as product information, technical support, and account management.
Research and Development
It includes the development of new products, technologies, and services, and conducting market research and analysis according to organizational requirements.
What are the Benefits of Having GCCs in your Business?
GCCs act as facilities or units within a company that provide centralized support services to the organization globally. Here is a breakdown of the benefits associated with GCCs for effective business growth and development.
Networking Opportunities
GCCs provide a platform for businesses to connect and network with other organizations and industry leaders. They provide networking opportunities to businesses by creating a centralized hub for the exchange of knowledge, information, and best practices. The process can help facilitate cross-functional collaboration and foster a culture of continuous improvement within the organizations. GCCs can also provide businesses with access to valuable resources, such as funding, technology, and talent according to their respective requirements.
Access to Market Intelligence
GCCs often gather and share information about market trends, competitor activities, and other relevant data, which can help businesses make informed decisions. They are located in a particular region and have established relationships with local organizations, governments, and other stakeholders. It can provide valuable access to local market intelligence and information.
So, GCCs help conduct primary and secondary research to gather market intelligence, such as conducting surveys, analyzing market data, and monitoring industry trends to facilitate knowledge sharing within organizations.
Advocacy and Representation
GCCs can serve as advocates for their members and represent their interests at the local, national, and international levels. They can represent the interests of each member by providing a unified voice in discussions with local, national, and international authorities, such as government agencies, trade associations, and international organizations.
GCCs often offer training and development programs to members to enable them to help businesses improve their competitiveness.
Global Capability Center Vs Global Competency Center
A global capability center and a global competency center may sound similar but their functionalities and perspectives are different from one another.
Global capability centers (GCCs) are centers of excellence within a company that provides specialized services, such as IT support or finance, to other parts of the organization. GCCs typically focus on providing a specific service or set of services and are often located in low-cost regions to take advantage of lower labor costs.
On the other hand, global competency centers (GCCs) are centers of expertise within a company that focuses on building and nurturing specific capabilities, such as leadership development or project management, across the organization. The centers often provide training, development opportunities, and consulting services to other parts of the organization.
Key Trends and Imperatives Related to GCCs in India
According to Community by NASSCOM Insights, India currently hosts around 1430+ GCCs that employ around 1.38 million people. So, the GCC industry has witnessed tremendous growth over the years with an extensive focus on supporting the digital transformation journey of global organizations.
Since India is one of the fastest-growing economies in the world, it continues to attract MNCs to its diverse and unique ecosystem. According to NASSCOM, around 140 MNCs set up their GCCs in the country between 2019 to 2021, with more than half of them headquartered in the U.S.
Some of the major drivers that make India a top choice for establishing GCCs include the availability of digital talent, peer MNC ecosystems, and the maturity of business startups. Moreover, GCCs are also prioritizing the requirements to build specific skill capabilities among the workforce to demonstrate high resilience in business ecosystems.
Why Partner with ANSR to Set Up Your Global Capability Center?
The global capability centers have created significant value within the Indian tech ecosystem. They have also witnessed a rise in demand because of the higher volumes of efficient software delivery among organizations.
That is why ANSR provides a GCC service with a ‘pay-as-you-grow’ subscription facility that helps empower customers to work and collaborate with global teams efficiently.
We also provide multiple end-to-end products to help with your tasks and activities, including customized workspaces, operational support and governance, robotic process automation tools, and artificial intelligence.
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