Imagine investing millions in a global expansion—only to end up with underperforming teams, missed deadlines, and a fractured delivery model. Unfortunately, this is the reality for many companies that rush to set up tech services teams in their Global Capability Centers (GCCs) without a clear roadmap.
Expanding your company’s global footprint by establishing tech services teams in a Global Capability Center (GCC) is a strategic move. Whether your goals are to improve cost efficiency, tap into a global talent pool, enable 24/7 operations, or accelerate innovation, setting up a tech services team in a new geography—especially in a GCC—can offer significant benefits.
However, many companies dive headfirst into this transition without a complete understanding of the nuances involved. While the vision is global transformation, the execution often stumbles due to a lack of planning, unsuitable hiring practices, or flawed models of engagement. If your GCC is expected to deliver core tech services, it must be set up right the first time.
In this article, we explore five critical mistakes that companies should avoid while setting up tech services teams in their GCCs. We also touch upon solutions, strategies, and modern tools that can streamline your GCC journey and position your business for long-term success.
Most companies make the mistake of viewing a GCC setup through a cost-arbitrage lens alone. This is a shortsighted approach. When it comes to tech services, the key differentiator is not just cost—it’s capability, continuity, and cultural fit.
Strategic workforce planning involves much more than just forecasting headcount. It means identifying the right mix of roles (from junior engineers to senior architects), aligning them with the technology roadmap, and creating a plan for future upskilling and internal mobility.
For example, a company setting up tech services in India may be tempted to hire aggressively due to the availability of talent. But without a structured blueprint, this can lead to mismatches between business requirements and team capabilities. Additionally, hiring without forecasting retention strategies, team scaling timelines, and local leadership bandwidth results in inefficiencies.
This is where Talent Solutions firms specializing in GCC advisory can be instrumental. They assess your business objectives and recommend the right talent mix, sourcing strategies, and scaling timelines—ensuring your tech services team grows in a sustainable, scalable manner.
One of the most common—and costly—errors companies make when building their GCC is neglecting cultural alignment and integration. Your tech services team in the GCC is not an external vendor or temporary support—it’s a core part of your organization.
Without strong cultural onboarding and continuous engagement, your offshore team may feel like second-class participants. This disconnect leads to communication gaps, poor team morale, and ultimately, lower productivity.
Investing in cross-cultural training, inclusive leadership practices, and aligned KPIs is essential. Implementing frameworks such as shared OKRs (Objectives and Key Results), routine check-ins across geographies, and transparent performance metrics helps ensure that your tech services team in the GCC feels empowered and connected.
Also, don’t overlook the tools. Leveraging collaboration platforms and internal communication channels is essential to maintain day-to-day efficiency. Even more crucially, make sure your headquarters and GCC teams are in sync when it comes to values, mission, and ownership of outcomes.
A McKinsey report shows that companies in the top quartile for ethnic and racial diversity are 35% more likely to have financial returns above their national industry median, while those in the top quartile for gender diversity are 15% more likely to outperform peers. These figures highlight that inclusive and integrated tech services teams do more than feel cohesive—they drive measurable business success.
Hiring top-tier talent for tech services requires speed, precision, and scale. Yet, many companies still rely on traditional hiring processes: multiple rounds of interviews, outdated job descriptions, and manual screening of resumes.
This is a recipe for delay and inefficiency—especially in high-demand tech domains such as AI, cybersecurity, DevOps, and data science.
The game-changer? Embracing AI recruitment tools. These tools use machine learning algorithms to analyze resumes, assess skill compatibility, and even predict a candidate’s future performance based on behavioral indicators.
They also allow you to build a consistent, unbiased recruitment process across multiple geographies. For companies looking to scale tech services rapidly in a gcc hub, integrating AI-driven hiring solutions can reduce time-to-fill, increase candidate quality, and improve the overall experience—for both hiring managers and candidates.
Furthermore, AI tools allow you to integrate elimination criteria, psychometric tests, and video interviews in a seamless manner. This level of efficiency is invaluable when building high-performance tech teams under time constraints.
The GCC model has evolved dramatically. From fully owned subsidiaries to third-party captives to BOTs (Build-Operate-Transfer), there are multiple ways to enter a market and set up tech services operations.
One of the most common mistakes companies make is jumping into a model without evaluating long-term implications. For example, setting up a fully owned GCC from Day 1 might sound ideal for control—but do you have the operational bandwidth to handle local compliance, hiring, payroll, infrastructure, and office management?
A popular alternative is the Build-Operate-Transfer model. In this approach, a local partner sets up and operates the center for a defined period, handling everything from hiring to HR to legal compliance. Once the center reaches maturity, full ownership is transferred to the parent company.
This model works well for organizations that want to accelerate their tech services deployment without compromising control. It’s especially useful for companies unfamiliar with local labor laws, market dynamics, or vendor ecosystems.
A hybrid model also enables experimentation. Companies can start with a captive unit in one location, a BOT in another, and then double down based on performance and scale.
Many GCC setups pre-pandemic were based on fixed real estate assumptions: "We have 300 employees, so we need 300 desks." This thinking is now obsolete. With hybrid work models becoming the norm, most employees prefer a 2‐3 day workweek at the office. This changes the equation significantly.
Without rethinking your space strategy, you risk locking yourself into long-term leases with low seat utilization. That’s poor capital allocation, especially in high-rent cities.
When setting up tech services, plan for rotational seating, hot desking, and usage-based coworking models. Not only does this reduce overhead, but it also increases flexibility—essential when scaling teams or navigating macro disruptions.
This is especially relevant for companies delivering Global Business Services (GBS) out of their GCCs. With finance, HR, IT, and engineering often co-located, the opportunity for shared services and smart space utilization is significant.
Use tech-enabled seat planning tools that can track occupancy, forecast future needs, and ensure optimal space usage without compromising collaboration or culture.
Another silent killer of GCC performance is internal resistance. When roles are transitioned from HQ or vendor partners to the GCC, there’s often friction—fear of job loss, knowledge hoarding, and passive-aggressive transitions.
To address this, develop a strong change management plan. Identify key talent in your current workforce that can help with the transition. Offer retention bonuses or reskilling options to mitigate disruption. Set up transparent communication channels with internal stakeholders and vendors.
Also, keep in mind relocation reluctance. In India, a BCG-led survey found that the percentage of professionals willing to work abroad fell from 78% in 2018 to just 54% in 2023. That means nearly half of your internal talent may decline relocation mandates without substantial incentives. Is your GCC solution prepared with hybrid onboarding or local hiring strategies?
These questions must be addressed proactively. A failed relocation plan or poor knowledge transfer process can severely delay the ramp-up of your tech services capabilities.
Building your tech services team in a GCC isn’t just a task—it’s a defining move for your global growth strategy.
Avoiding these five mistakes is critical to setting a strong, scalable foundation:
Your GCC is not just a delivery center. It should be a strategic tech services engine—your gcc hub—powering innovation, resilience, and speed across your enterprise.
Get it right from Day 1, and your tech services team becomes a true growth enabler—not a cost burden.
Looking to set up or scale your GCC with confidence? Connect with our team to explore proven strategies, tailored GCC solutions, and execution support that deliver measurable outcomes.
Start building smarter. Let’s talk.
Gaurav Chawla, COO of Anlage Infotech, emphasized the transformative role of AI-powered analytics in HR at the 5th Edition of the GCC Summit 2024. Highlighting predictive analysis and smart tool utilization, he shared how these technologies can cut hiring cycle times by up to 60%, driving greater efficiency. The event took place at GMR Aerocity Hyderabad.
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