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.

Global Capability Centers: A Strategic Growth Model for B2B

By 2025, Global Capability Centres (GCCs) will have replaced offshore cost centres as key enablers of enterprise development. GCCs have become, particularly in India, over half of the totality of such centres on the planet, with India, however, having nearly 1,900 GCCs of the total 3,500 GCCs worldwide, or an impressive 53 per cent of the planetary ecosystem.

The business impetus of GCCs is evident: the aggregate worth of its markets reached approximately 65 billion dollars in 2024 and will grow to 110 billion by 2030, with a strong CAGR growth rate in the same decade.

In addition, the employment effect will be significant; approximately 450,000 jobs will be created in India alone in 2025, and over 3.3 million professionals are likely to be employed by 2030.

Such strong trends are indicative that GCCs cease to be marginal to strategic business performance; instead, they are central to GCC strategy for business expansion in the B2B businesses globally.

Reinventing Global Capability Centres to B2B Winning.

What GCCs Mean Today

A Global Capability Center (GCC) is a strategic facility that is developed by a global business to consolidate key strategic assets like technology development, analytics, R&D and business process transformation. GCCs in the B2B setting go beyond back-office assistance; they possess the outcomes of the strategy, which directly impact the growth factors, including the speed of innovation, customer satisfaction and competitiveness.

The GCCs in B2B markets where differentiation and complexity of solutions are most important, transform into enterprise growth drivers, in which talent, technology, and global delivery are integrated into one GCC operating model.

The B2B Enterprises And the Importance of GCCs

1. Strategic Value

Traditionally, GCCs were initially valued based on cost arbitrage, but nowadays they lead to innovation arbitrage: the creation of digital platforms, the capacity to provide advanced analytics, and the ability to scale cloud-native solutions that create competitive advantage. Nearly 92% of GCC leaders agree that these centres define change and strategic implementation, going far beyond simple cost efficiencies, according to recent industry wisdom.

2. Squeezing the Trigger on Digital Maturity.

As AI, GenAI, automation and analytics investments grow fast, around 70 per cent of GCCs are piloting AI use cases, which makes them nerve centers to next-generation digital adoption.

https://inductusgcc.com/wp-content/uploads/2025/12/GCC-Image67.5.jpg

The Economic Benefits of the GCC Model

GCCs create indirect value in supply chains and regional economies in addition to having direct economic value in terms of employment, taxes, and revenue. For example:

Direct contribution to GDP: In 2024, the direct contribution of the industry to the GDP is about 1.5% of the GDP of India.
Indirect and induced effects: Approximated to be 150-200 billion.
Estimated GCC revenue in 2030: $100 110 billion.

These economic footprints highlight why the GCC strategy of business expansion is more than just an operational issue; it is also a national economic driver that influences employment patterns and global competitiveness.

GCC Value Drivers of B2B Enterprises

Value Driver	Business Impact	Outcome
Innovation & R&D	New products and platforms	Faster go-to-market
Advanced Analytics & AI	Data-driven decision-making	Higher customer ROI
Cloud & Digital Engineering	Scalable global solutions	Enhanced service delivery
Talent Strategy & Upskilling	Future-ready workforce	Sustained competitive edge
Strategic Governance	Aligns global operations	Efficient cost-to-revenue ratio

GCC Models of Operations

B2B businesses are implementing various GCC running models depending on strategic considerations:

The Captive GCC Model ensures complete ownership and control over talent, intellectual property, and results.
The Hybrid GCC Model integrates internal leadership and strategic vendor relationships.
The GCC-as-a-Service Model is based on orchestrated skills in each area and can be scaled without the need for infrastructure investments.

The model decision reflects the enterprise’s desire to control and innovate while also integrating with headquarters operations.

Trends To Be Followed

AI and Technology at the Core: Over 50 per cent of all GCCs are powering enterprise-grade AI and analytics initiatives as they transition from support functions to innovation-led mandates.
Development of Ex-core Cities: In India, The GCC ecosystem is growing to Tier-II and Tier-III hubs and then democratising growth, keeping costs under control and utilising a variety of talent pools.
Job Market Transformation: The GCC recruiting has been noted to increase by four times the pace compared to custom IT services specifically in technology and specialised engineering positions – an indication of skilful demand dynamics.

Conclusion

Global Capability Centres will determine the way of scaling, innovating, and competing of B2B enterprises in the next decade. The fourth level of value is found by the institutionalisation of GCCs as strategic assets and not as cost centers; this allows the business to create new value layers in technology, operational excellence, and global delivery models.

Business organisations that entrench GCC as a growth model into their operating system will not only save money but also enhance innovation speed, growth potential, and resiliency to fast-changing and developing challenges in the market.

Essentially, GCCs cease being optional infrastructure; they are development accelerators, which define the future of B2B enterprise strategy.

https://inductusgcc.com/wp-content/uploads/2025/12/GCC-CTA67.7.jpg

frequently asked questions (FAQs)

Who are the Pharma GCC development leaders in India?

Hyderabad, Bangalore and Pune have become significant pharma innovation centres with global delivery centres of major biotechnological and pharmaceutical firms such as Novartis, Pfizer, AstraZeneca and GSK.

Which economic benefits do Pharma GCCs have?

They offer an economic benefit of calculation, a variety of scientific and technical human resources, and speedy time-to-market. On average, businesses reduce between 25-40 percent of the operational costs and increase the rate of innovation.

Which technologies are influencing Pharma GCC operations nowadays?

The next-generation operations of Pharma GCC focus on advanced molecular modelling, AI/ML-based drug discovery, cloud supercomputing, and data integration platforms, as well as quantum-ready simulations.

What is the role of AI in Pharma GCC processes?

Pharma GCCs use AI to screen molecules, predict the efficacy of drugs, optimise clinical trials and aid in making data-driven decisions, resulting in smarter, faster and safer drug pipelines.

How will Pharma GCCs look in five years to come?

Pharma GCCs will be global innovation ecosystems that are a combination of computational chemistry, generative AI, and quantum computing. They will turn into the hubs linking data science, discovery and regulatory intelligence in the global arena.

https://inductusgcc.com/wp-content/uploads/2025/05/1-3.png

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.