What if the biggest threat to your Global Capability Center isn’t poor execution—but picking the wrong city?
It’s a mistake many companies make—lured by low costs or peer pressure—only to realize too late that their chosen global business hub lacks the talent, infrastructure, or regulatory maturity to support long-term success.
When establishing Global Capability Centers (GCCs), selecting the right global business hub is one of the most important strategic decisions a company can make. The right location can fuel innovation, lower operational costs, and ensure access to top talent. The wrong one? It can lead to poor retention, regulatory issues, and underwhelming performance.
Today, with rapid advances in digital transformation, AI recruitment tools, hybrid workforces, and Build-Operate-Transfer (BOT) models, companies need to go beyond cost and think long-term. This article explores five critical mistakes to avoid when choosing a global business hub—with actionable insights to set up a resilient, high-performing GCC.
The most common mistake companies make is selecting a global business hub based purely on immediate access to talent or low labor costs. While this might yield short-term gains, it can become a liability when scaling operations.
GCCs are no longer transactional centers—they are strategic units that must evolve with emerging technologies and business priorities. As your GCC scales, you’ll need access to a future-ready workforce across multiple domains.
For example, if you're building capabilities in AI, cloud engineering, or cybersecurity, you need a global business hub that not only has existing talent but also a strong pipeline—think robust educational institutions, government upskilling initiatives, and local migration trends.
Use Talent Solutions platforms to map skill availability over time. Evaluate university output, tech startup activity, and industry-academia collaborations in the region. Consider talent mobility—how easily can talent relocate to this global business hub?
A location might look good on paper, but if its infrastructure is weak or bureaucracy is high, expect delays, disruptions, and higher costs. Poor road access, unreliable internet, frequent power outages, and weak logistics can undermine your operations.
Additionally, if regulatory processes for leasing, employment, or tax filings are cumbersome, your GCC setup might be riddled with delays. This often happens in emerging hubs that are not yet mature or investor-friendly.
In fact, a report by Economist Impact, found that 99.5% of megaprojects worldwide fail to be delivered on time, on budget, and according to promised benefits, with an average cost overrun of 62%. This underlines the critical importance of choosing a global business hub with strong infrastructure and operational readiness from day one.
If you're considering a Build-Operate-Transfer model, work with providers who have successfully executed it in your target location, so you’re not learning the hard way.
When companies expand into a new global business hub, they often assume their brand name carries global appeal. In reality, many MNCs are virtually unknown to local candidates, especially in non-customer-facing sectors.
Failing to invest in local brand-building leads to poor visibility, lower-quality applications, and higher attrition. In regions with high GCC saturation, talent often picks brands that offer career progression, leadership visibility, and workplace culture—not just salary.
According to a report, organizations with strong employer brands experience 28% lower turnover rates and up to 50% lower cost‐per‐hire. This highlights the significant long-term impact of local brand perception on both retention and recruitment efficiency.
Also, pick a global business hub where your value proposition aligns with what talent is seeking—work-life balance, innovation culture, or global exposure.
Not every global business hub excels in every function. Some are better suited for product engineering, others for shared services or analytics. A centre of excellence for R&D in a location known only for support functions is bound to struggle.
For instance, setting up a finance GCC in a city known primarily for tech may limit access to domain-specific talent. Likewise, launching a digital innovation captive unit in a location focused on traditional BPO functions will impact both quality and retention.
Many companies start small—say, 20-50 employees—and assume they can scale later. But without a future-ready operating model, growth becomes chaotic. Compliance risks emerge. Delivery suffers. Leadership bandwidth gets stretched.
Moreover, companies often underestimate what it takes to go from a support GCC to a strategic centre of excellence. You need structure, process, governance, and local leadership.
Many companies select a location just because peers or competitors are there. While clustering has benefits, it also increases talent cost, attrition risk, and branding clutter. Instead, look for underserved yet promising global business hubs with:
Choosing the right global business hub goes far beyond selecting a city with a large talent pool or low costs. It’s a multidimensional decision involving infrastructure, regulatory ease, cultural alignment, employer branding, and future scalability.
By avoiding the five critical mistakes outlined above, you lay the foundation for a Global Capability Center that is agile, future-ready, and strategically aligned with your business goals. A thoughtfully designed captive unit in the right location can evolve into a high-impact centre of excellence—delivering innovation, efficiency, and competitive advantage.
At Anlage, we offer end-to-end GCC solutions—from location strategy and setup to Talent Solutions, compliance support, and seamless Build-Operate-Transfer execution. Whether you're launching your first GCC or scaling an existing one, our expertise ensures your chosen global business hub becomes a true growth engine.
Let’s build your GCC the right way. Contact us to schedule a consultation with our experts and explore how Anlage can be your strategic partner in global expansion.
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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