Centers of Excellence or Shared Service Center: A Comparison

The age of metropolitan dominance in India’s GCC ecosystem is gradually giving way to a more distributed, strategically intelligent, and resilient model. As operating costs spiral, urban talent saturation intensifies, and digital infrastructure is democratized, US firms are reanalyzing the geographical borders of global operations. What they have discovered is a powerful and largely untapped cluster: India’s Tier-2 cities which are rewriting the playbook of GCC expansion.

Tier 1 cities like Bengaluru, Hyderabad, Delhi NCR, and Chennai have a long-standing history of being the preferred destinations for US-focused GCCs in India. This is now being augmented by deliberate moves into emerging cities such as Coimbatore, Bhubaneswar, Visakhapatnam, Indore, Kochi, and Jaipur. These are not simply second-tier options but are fast becoming first-choice for forward-looking enterprises. With their expanding talent base, improving infrastructure, cost advantages, and conducive policy environment, Tier-2 cities are stepping into the spotlight as the next frontier for US GCCs seeking agility, scale, and long-term sustainability in today’s dynamic business landscape.

The question today for US-based organizations is no longer whether to expand into Tier-2, but ‘how soon, how fast, and how smartly’ they can unlock its strategic potential with India’s GCC strategy in 2025 and beyond.

Understanding the Models: A Simplified Overview

Whether you wish to pick one or know how they complement one another, below are the details.

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Share Service Center (SSC)

A Shared Service Center consolidates routine, transactional processes which often spans business units or geographies into a single, centralized unit. Its core objective is operational efficiency through standardization, automation, and cost reduction. Common functions managed through SSCs include:

Finance and Accounting (F&A)
Human Resources (HR)
Procurement
IT Support and Helpdesk Services
Payroll and Compliance

SSCs in Indian GCCs are frequently established in low-cost regions, enabling organizations to reduce their overheads while improving process consistency.

Center of Excellence (CoE)

A Center of Excellence, on the contrary, is built around expertise, innovation, and strategic enablement. CoEs are designed to house high-skill talent focused on driving best practices, exploring emerging technologies, and delivering specialized knowledge across the enterprise. CoEs often focus on domains such as:

Artificial Intelligence & Machine Learning
Data Science & Advanced Analytics
Cybersecurity
Customer Experience
Supply Chain Innovation

Rather than executing routine tasks, CoEs function as internal consultancies and think tanks.

Comparison between SSC and CoE

A strategic comparison will help you know when, why, and how to deploy them for maximum business impact in 2025 and beyond.

Feature	Shared Service Center (SSC)	Center of Excellence (CoE)
Primary Focus	Cost optimization and efficiency	Capability development
Value Proposition	Process standardization and scale	Thought leadership and innovation
Talent Composition	Mid-level roles & process oriented	Highly skilled specialists and domain experts
Typical Functions	Operational/Transactional Tasks	Domain-specific expertise and strategic approaches
Success Metrics	Cost Savings and SLA adherence	Impactful, innovation adoption, and strategic value
Geographic Strategy	Low-cost locations	Talent hubs and innovation ecosystems

When to Choose What - A Mini Guide

When you set up a GCC, choose SCC under the following circumstances:

The priority is scaling operations with consistent, repeatable processes.
You need to reduce costs while maintaining service levels.
The business has matured, and processes are well-defined and automatable.
Centralization of multiple business unit functions can improve overall productivity.

In your offshore development center, choose a center of excellence when:

The organization is pursuing strategic innovation or digital transformation.
Specialized, scarce talent needs to be centralized and scaled.
There’s a need to standardize best practices or roll out new technologies across units.
You want to lead from the center rather than simply support from the back.

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Can SSC and Center of Excellence Co-Exist?

Yes, absolutely. The most progressive global enterprises are no longer picking one. They are making efforts to integrate both into a hybrid global delivery model. For example, a retail giant may operate an SSC in India to handle finance and HR processes while also running a CoE focused on AI-driven customer personalization.

In such setups, SSCs in GCCs in India take care of the operational load, freeing up CoEs to focus on value creation. Moreover, insights gathered in SSCs can be channeled into CoEs to inform new tools, frameworks, or process optimizations thus creating a feedback loop of continuous improvement.

Conclusion

In 2025, where speed to innovation and cost agility are both non-negotiables, global organizations will need to structure their operations with greater intent. Shared Service Centers will continue to be foundational for enterprise stability, especially in functions that demand accuracy, compliance, and repeatability.
But Centers of Excellence will define the competitive edge, giving organizations the ability to anticipate market shifts, drive innovation, and respond with agility. The future lies not in choosing one over the other but in designing operating models that use both strategically. Organizations that master this balance will not only run lean but they’ll lead.