Think your GCC is just a back office? Think again.
In today’s fast-moving global economy, a well-planned Global
Capability Center can become the nerve
center of innovation, agility, and strategic advantage. But without the right setup, it risks
becoming a costly liability instead of a game-changer.
Setting up a Global Capability Center (GCC) is one of the most powerful ways for global enterprises to reduce costs, drive innovation, and tap into top global talent. Yet, despite the widespread adoption of this model, many global enterprises falter by making avoidable missteps that compromise long-term success.
Whether the goal is digital acceleration, engineering excellence, or centralized operations, setting up a GCC is a major strategic investment. Avoiding these six key mistakes can ensure that global enterprises create a resilient and high-performing GCC that delivers exponential value over time.
A common mistake global enterprises make when launching a GCC is failing to approach it with a long-term strategic perspective. Too often, organizations focus on short-term cost savings or staff augmentation. While these may be valid starting points, the true potential of a GCC lies in its evolution into a center of excellence—contributing to R&D, product engineering, data science, or AI innovation.
A recent BCG survey revealed that only 8% of GCCs have pivoted to become transformative engines of innovation and efficiency, with the vast majority still operating as support functions.
Smart global enterprises recognize that the GCC should reflect the larger business vision. It must be treated not as a support function but as a core business enabler. Failing to define this vision early on leads to tactical execution without alignment—resulting in disjointed operations and unrealized value.
The most successful global enterprises build scalable GCCs that are future-ready, with the ability to grow from 50 to 500+ team members while expanding in scope and strategic value.
Many global enterprises select locations based on perceived cost advantages or reputation rather than actual alignment with business needs. However, factors like talent pool availability, domain-specific expertise, language proficiency, and government incentives vary significantly from city to city.
This is where specialized target consulting becomes crucial. Firms that specialize in GCC advisory offer deep, city-level insights into factors like real estate saturation, labor costs, availability of niche skills, and infrastructure quality. Without this support, global enterprises risk entering saturated or ill-fitting markets.
Equally important is alignment with Talent Solutions. A fintech-focused GCC in Chennai or an analytics hub in Hyderabad must consider the availability of skilled professionals in those domains. Partnering with local experts who understand this dynamic can be the difference between smooth ramp-up and prolonged hiring delays.
The Build-Operate-Transfer (BOT) model offers global enterprises a structured way to de-risk their entry into a new geography. It enables quick operationalization of a GCC through a third-party partner who builds and runs the center before transferring full ownership.
However, many organizations underestimate how complex the “transfer” phase can be. Leadership transitions, cultural alignment, and knowledge transfer are often mismanaged, leading to disruption. Clear governance, performance metrics, and phased milestones are essential for success.
The BOT model is especially attractive for global enterprises launching a GCC for the first time. But to succeed, the enterprise must stay actively involved, particularly during the "operate" phase, to ensure alignment and continuity when the transfer happens.
Another critical misstep is allowing the GCC to function in isolation from headquarters. When run as a siloed captive unit, the GCC loses touch with the strategic and cultural fabric of the organization. It becomes a transactional delivery center, not an integrated innovation partner.
Modern global enterprises integrate their GCCs into core operations through shared KPIs, unified platforms, and real-time collaboration. The idea is to build a team that reflects the organization’s DNA—capable of driving initiatives, sharing ownership, and delivering measurable impact.
The GCC should evolve beyond a shared services model and become a true contributor to revenue growth, product excellence, and customer experience.
In a hyper-competitive hiring landscape, failing to adopt technology can slow down the establishment of a high-performing GCC. Many global enterprises still rely on traditional hiring processes that are time-consuming and inconsistent.
In contrast, forward-thinking organizations deploy AI recruitment tools to automate screening, improve quality of hire, and ensure alignment with culture and competency. These tools use data science and machine learning to match candidates with roles, reducing time-to-hire and increasing offer acceptance rates. A recent report also predicts that 70% of companies will rely on AI in hiring by the end of 2025, signaling a clear shift toward intelligent and scalable recruitment practices.
Besides recruitment, digital enablement extends to cloud infrastructure, cybersecurity, employee engagement platforms, and collaboration tools. The GCC must be technologically empowered to function as a modern, agile extension of the enterprise.
Choosing the right partner to design and build your GCC is one of the most critical decisions a company can make. Many global enterprises mistakenly engage generic outsourcing vendors with limited expertise in full-stack GCC creation. This often results in poor stakeholder management, regulatory hurdles, and talent mismatches.
The ideal execution partner should offer comprehensive GCC solutions, spanning legal, regulatory, infrastructure, and talent acquisition services. They should also have deep experience setting up offshore development centers and understanding cross-border operational dynamics.
A truly capable partner doesn’t just build infrastructure—they help define your GCC’s purpose, scale it intelligently, and integrate it into your global business model.
Successful global enterprises that build thriving GCCs avoid these pitfalls by embracing a few core principles:
By learning from others’ missteps and taking a future-ready approach, global enterprises can transform their GCCs into powerful centers of excellence. Whether the goal is innovation, operational efficiency, or digital transformation, your GCC should become a living, breathing part of your enterprise—not just an address on a different continent.
As the world grows more interconnected, global enterprises must scale efficiently while staying agile and innovative. A well-executed GCC isn’t just an option—it’s a strategic necessity.
But success lies in the execution—avoiding common pitfalls, leveraging the right tools, and partnering with experts who understand your goals.
Build a GCC that reflects your brand’s ambition, not just its operations.
Make smart decisions. Move with clarity. And set the foundation for long-term value.
Because in today’s dynamic economy, the global enterprises that lead are the ones that get their global execution right—from strategy to scale.
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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