What is a Global Capability Center (GCC)?

A Global Capability Center (GCC) is a centralized offshore unit established by an organization to deliver strategic services such as IT, engineering, analytics, finance, and R&D to support global operations.

What is an Offshore Development Center (ODC)?

An Offshore Development Center (ODC) is a dedicated team located in a different country that focuses primarily on software development, application maintenance, and technology support for a client.

What services are commonly delivered through a GCC?

GCCs provide services such as IT operations, product engineering, data analytics, cybersecurity, finance and accounting, HR services, and research and development.

What are the key benefits of setting up a GCC?

Key benefits include cost optimization, access to global talent, operational scalability, faster innovation, improved control, and long-term strategic value creation.

Which industries commonly use GCCs and ODCs?

Industries such as technology, banking and financial services, healthcare, manufacturing, retail, telecom, and automotive commonly leverage GCCs and ODCs.

What locations are popular for setting up GCCs and ODCs?

Popular locations include India, Eastern Europe, Southeast Asia, Latin America, and the Philippines due to strong talent pools and cost advantages.

How long does it take to set up a GCC or ODC?

The setup timeline can range from a few weeks to several months, depending on factors such as location, scale, infrastructure requirements, and governance model.

Is a GCC or an ODC better for long-term growth?

A GCC is generally better for long-term strategic growth and innovation, while an ODC is ideal for rapid execution, flexibility, and short- to medium-term technology needs.

How do GCCs and ODCs help with cost optimization?

They reduce costs by leveraging lower labor expenses, optimizing resource utilization, minimizing infrastructure investments, and enabling round-the-clock development through time-zone advantages.

How is data security and IP protection handled in GCCs and ODCs?

Data security is ensured through strict compliance frameworks, secure infrastructure, access controls, legal agreements, and adherence to international standards such as ISO, SOC, and GDPR.

GCC Setup Models: Myths, Risks & Accelerators

The Global Capability Centres (GCCs) are no longer cost centres but strategic innovation engines, and India lies at the heart of the change. It is estimated that by the end of 2025 India will have approximately 1,900 GCCs generating about USD 60-65 billion of annual value and employing almost 2 million professionals, a trend that supports international market expansion and offshoring delivery plans.

This development alters the way multinational organisations shape their international GCC strategy. GCC setup models, which are led by consultants, speed up the transfer of capabilities, de-risk regulatory compliance, and reduce time-to-value, which are very imperative when global companies seek to expand into international markets and use offshore delivery centres as sources of competitive advantage.

The Consulting-Led GCC's Case

Consultants introduce playbooks based on several GCC launches.

Playbooks chart talent ecosystems, governance, compliance and IP protections.
This saves trial-and-error expenses as well as aligns GCC with the global model of operating a firm.
The Outcome: Quicker operationalisation, quantifiable KPIs, and scalable innovation and production work delivery platforms.

Myths vs Reality

Myth	Reality
GCCs that are managed by consultants are expensive and contain overheads.	Upfront consulting charges can seem expensive, but by designing GCC setups in model shapes, total costs are potentially cut by up to 2530% by removing trial and error, avoiding regulatory fines, and accelerating operations realisation. The ROI increases faster as companies bring productivity to fruition in 6-9 months, instead of 18-24 months.
Once consultants are involved, you lose control of your offshore delivery center.	Consulting firms are not GCCs; they create structures, governance strategies and compliance solutions, but the parent company retains complete ownership. This guarantees that the enterprises maintain the authority over the decision-making process and experience risk-managed performance.
Models run by consulting are merely outsourcing in disguise.	The GCC setup models, unlike outsourcing or managed services, enable IP ownership, internal capacity development, and sustainable alignment of strategic purpose with global business objectives. International GCC strategy that maintains a level of Innovation and size of business operations is possible through consulting instead of (as opposed to) short-term cost reductions.
GCCs are only for large multinationals.	GCC setup models led by consultants are becoming more popular in mid-sized enterprises as they seek to grow rapidly without committing excessive resources to infrastructure. Even mid-market companies can establish GCCs in India to do analytics, product engineering, and create AI with modular playbooks and ecosystem access.

Independent GCC Setup Risks

Unfit talent leads to higher attrition rates and delivery discrepancy.
Poor governance subjects the business to cross-border compliance and data privacy failures (GDPR, sectoral regulations).
Capital and recurring costs get bloated with unstructured vendor and real estate decisions.
The cumulative effects of these risks include late product releases and missing out on market opportunities.

Experienced Accelerator of Consulting-Led Models.

Playbooks: Governance, tech stack, and talent standardised blueprints.
Talent Ecosystem Mapping: Sourcing in primary and tier-2 hubs quickly to strike a balance between cost and capability.
Compliance & Risk Frameworks: GDPR, sectoral regulation and IP protection pre-built controls.
Scalable Operating Model: Phased delivery pilot scale optimisation – minimising initial capital risk.
Innovation Bridges: Collaborating with local startups and university laboratories to accelerate productisation.

The Economic Benefits

Consulting-based arrangements save time-to-hire and time-to-first-delivery and turn fixed costs into planned, roll-out investment. This is to increase the cash conversion cycles and marginal return on R&D spend when GCCs are applied to product engineering and analytics and not just for transactional work only. On a macro level, the GCC ecosystem is playing a significant role in export revenues and high-value job creation; host-economy benefits and policy incentives are justified.

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The momentum behind the consulting model is shown in recent moves by large retailers and tech companies to set up GCCs in India, where cost leadership and the pool of available talent remain deep. It is interesting to note that new entrants are increasingly moving to India to establish GCCs.

Conclusion

Consulting-led models of GCC establishment will be transformed into a strategic model as GCCs evolve into competitive differentiation instruments. In companies that have decided to enter the global market and to rely on offshore delivery hubs that will ensure a robust partnership, collaboration with seasoned GCC consultants will eliminate the anxiety of entering the market, access economic advantages, and generate replicable innovation opportunities. The coming decade of capability arbitrage will be won by organisations who view consultants as co-architects, rather than contractors.

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Moving ahead, the main focus is evident: implement modelled GCC structures that are both fast and, at the same time, both compliant and long-term capability-building to seize the productivity and innovation upside of the global markets.

frequently asked questions (FAQs)

What is the Global Delivery Centre (GDC)?

A GDC refers to a single-minded offshore deployment, which provides proficient business, technology and operational services to corporate bodies on a global basis.

What are the most suitable industries with the help of GDCs in India?

BFSI, IT services, healthcare, telecom, retail, manufacturing, and other upcoming technologies, including AI and blockchain.

What can GDCs in India do along with offering cost and labour benefits?

They do not only target cost savings but now aim at innovation, automation, R&D, digital transformation, and high-value consulting.

How are GDCs relevant to digital transformation?

They design and create cloud, artificial intelligence, analytics, cloud security, and process automation.

What talents do the GDCs of India add?

A large supply of STEM graduates, multilingual workers and niche skills in AI, ML, cloud, and analytics.

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Aditi

Aditi, with a strong background in forensic science and biotechnology, brings an innovative scientific perspective to her work. Her expertise spans research, analytics, and strategic advisory in consulting and GCC environments. She has published numerous research papers and articles. A versatile writer in both technical and creative domains, Aditi excels at translating complex subjects into compelling insights. Which she aligns seamlessly with consulting, advisory domain, and GCC operations. Her ability to bridge science, business, and storytelling positions her as a strategic thinker who can drive data-informed decision-making.