Did you know? The most successful companies in the world don’t just set up offshore units — they build resilient, future-ready hub operations that evolve into true centers of excellence. But here’s the catch: even the most well-intentioned Global Capability Centers can fall short if they ignore the hidden pitfalls that derail performance and stunt growth.
In the past decade, Global Capability Centers have become the beating heart of operational excellence for multinationals worldwide. From back-office support to advanced analytics and R&D, these hubs have evolved into value creators — not just cost centers. Yet, as organizations race to establish or scale up their GCC hub footprint, they often overlook the fundamentals that make or break effective hub operations.
Whether you run a mature captive unit, an emerging gcc hub, or are designing your future roadmap, understanding the pitfalls that weaken hub operations is critical. More importantly, learning how to address them proactively can help your organization unlock untapped value, boost productivity, and position itself as a true leader in Global business services.
In this article, we’ll unpack seven of the most common mistakes companies make with their hub operations — and show you exactly how to fix them.
Your people are the engine that powers your hub operations. Unfortunately, many organizations underestimate the complexity of local talent markets and miss the mark on aligning hiring with evolving business goals. The result? Critical skill gaps, high attrition, and a culture that struggles to keep pace.
How to Fix It:Invest in a dynamic talent blueprint. Partner with credible Talent Solutions providers who understand your industry’s nuances and local talent supply. Use advanced AI recruitment tools to source, screen, and hire the best-fit talent faster than your competitors. Building an agile, well-equipped workforce ensures your hub operations can scale sustainably — no matter how fast business needs evolve.
Without clear governance frameworks, even the most well-funded hub operations can become mired in inefficiency. Blurred lines of responsibility, conflicting decision rights, and the absence of performance metrics lead to confusion and frequent fire-fighting.
How to Fix It:Define ownership and accountability for each process area. Use structured reporting to create real-time visibility. Design dashboards that monitor SLAs and operational KPIs, making it easy to course-correct when needed. A transparent governance model ensures your hub operations align with the strategic goals of the parent organization, driving consistency across geographies. According to Deloitte’s Survey, about 55% of organizations with a global GBS leader role have achieved over 20% average cost savings, highlighting how strong leadership, governance clarity, and decisional alignment are key success factors.
A classic pitfall in hub operations is failing to transfer critical know-how from onshore to offshore teams. When process owners rush through transitions without robust documentation or shadowing phases, knowledge silos and rework become inevitable.
How to Fix It:Adopt a phased approach using the Build-Operate-Transfer (BOT) model — one of the most reliable ways to establish resilient hub operations. Here, the parent company builds the foundation, operates the hub to embed best practices, and transfers full ownership once the local team is ready. This structured handover process minimizes disruption, protects intellectual property, and accelerates time to value.
One of the most common mistakes in hub operations is simply lifting and shifting old, bloated processes into the new location. What worked for an onshore team may be unsuitable for an offshore environment — leading to delays, high costs, and low employee morale.
How to Fix It:Before setting up your hub operations, scrutinize every workflow for efficiency. Simplify, standardize, and automate wherever possible. Tap into industry-leading GCC solutions to redesign processes with a lean mindset. Remember, the goal isn’t to replicate complexity but to build adaptable, scalable, and fit-for-purpose operations.
Culture often gets overshadowed by KPIs and cost targets — but ignoring it can severely limit the potential of your hub operations. Misaligned values, communication barriers, and a sense of disconnect between HQ and the gcc hub lead to disengaged teams and suboptimal outcomes.
How to Fix It:Foster cultural synergy from day one. Invest in leadership exchanges, onshore-offshore rotations, and cross-cultural training. Establish clear communication channels and promote transparency. Celebrate local successes while staying true to the parent company’s core values. A strong, unified culture empowers your teams to deliver exceptional results and become true ambassadors of your hub operations.
In today’s digital-first economy, running your hub operations on outdated systems is a recipe for inefficiency. Many organizations stick with legacy tech stacks, fearing the cost and complexity of upgrades — but this only delays transformation and makes your operations more vulnerable. According to EY, 50% of CEOs believe their organizations haven’t done enough to protect against disruption, highlighting the risk of underinvestment in modern digital infrastructure.
How to Fix It:Conduct regular technology audits to identify gaps and redundancies. Modernize your digital architecture with scalable, secure, and cloud-ready solutions. Integrate intelligent automation, RPA, and predictive analytics to boost efficiency and resilience. When your hub operations run on robust technology, they can adapt faster and contribute to innovation across the enterprise.
Perhaps the most strategic error is seeing your hub operations purely as a cost-saving exercise. Organizations that take a transactional approach limit the hub’s ability to evolve into a true value engine. They miss out on opportunities to turn their hubs into innovation centers or platforms for piloting next-gen ideas.
How to Fix It:Shift the narrative. Position your hub operations as a critical pillar of enterprise growth. Empower local leaders, reward innovation, and encourage a mindset of continuous improvement. Expand the scope beyond transactional tasks — think analytics, product development, and transformation projects that impact the entire organization.
Well-run hub operations can transform a captive unit from a simple support function into a powerhouse of strategic value. When you combine the right people, processes, and technology with a culture of accountability and innovation, your GCC becomes an indispensable growth driver.
When done right, hub operations don’t just deliver cost efficiencies — they power strategic agility, drive innovation, and help you outpace your competitors in a volatile market. By avoiding these seven pitfalls, you can build a resilient foundation for growth.
Remember, strong hub operations are not built overnight. They demand clear vision, committed leadership, and the right partners to bring that vision to life. As you chart your course, explore tailored GCC solutions, tap into specialized Talent Solutions, and integrate cutting-edge AI recruitment tools to stay ahead.
Whether you’re setting up new Global Capability Centers, expanding your gcc hub, or optimizing an established captive unit, focus on lean design, cultural alignment, and digital enablement. This is how modern hub operations evolve from back-office cost centers into dynamic engines of transformation.
Are your hub operations ready to shape your organization’s future? The time to get it right — is now.
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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