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GCCs: The New Trend in Business

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What are GCCs and why are they becoming so popular among companies? GCC stands for Global Capability Center, which is a type of offshore or nearshore center that provides specialized services or functions for a parent company. They are different from traditional outsourcing models because they are owned and controlled by the parent company, and they focus on strategic and value-added activities rather than low-cost and low-skill tasks. GCCs offer many benefits for companies, such as:
  • Access to talent: They can tap into the large and diverse pool of skilled workers in emerging markets, especially in fields like technology, engineering, and research.
  • Cost savings: Can reduce operational costs by leveraging lower wages, taxes, and infrastructure expenses in the host countries.
  • Innovation: GCCs can foster innovation and collaboration by bringing together different perspectives, cultures, and expertise from across the globe.
  • Agility: They can enable faster and more flexible responses to changing customer needs and market conditions by being closer to the end-users and local partners.

India is a preferred destination for GCC

India is one of the most favourite destinations for GCCs.According to a report by Zinnov,  more than 1500 Global Capability Centers have made India their home, and they employ more than 1.5 Mn people, in over a hundred verticals.
According to NASSCOM, over 500 Global Capability Centres are expected to emerge in India by 2026. GCCs in India will potentially scale up to a revenue of $60-$85 billion by 2026, from $33.8 billion in 2019-20. Top locations for GCCs in terms of building scalable GCCs, are India, Canada, China, Poland, and Mexico. These countries ranked top based on the following parameters.
  • Immense Talent Availability
  • Software Engineering Ecosystem Maturity
  • Ease of Doing Business
  • Cost Analysis

What attracts an organisation to build its GCC in a country

GCCs are attracted to countries that offer attractive advantages such as:
  • Large and young population: These countries have a high proportion of millennials and Gen Z in their workforce, who are tech-savvy, creative, and adaptable.
  • Strong education system: These countries have a high number of graduates in STEM (science, technology, engineering, and mathematics) fields, as well as in business and management.
  • Favourable business environment: These countries have supportive policies and regulations for foreign investment, as well as good infrastructure and connectivity.

Mutually beneficial for both

GCCs are not only beneficial for companies, but also for the host countries and the employees. It can create jobs, boost economic growth, enhance skills development, and promote social inclusion. It can also offer employees opportunities to work on challenging and meaningful projects, learn from global best practices, and advance their careers.

GCCs are the new trend in business that you should know about. Whether you are a company looking for a competitive edge, a country looking for a development partner, or an employee looking for a rewarding career, GCCs might be the answer for you. 

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