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.

Strategic GCC Cost Optimisation & Flexible Real Estate

In 2025, one of the major German automotive multinationals secretly reorganised its Bangalore and Pune global capability centers (GCCs). It was not aimed at layoffs but at reimagining space and workforce allocation. The combination of a flexible model of real estate and the right size of the operations meant the company minimised the cost of its operations by almost 25% and enhanced the cooperation among offshore software centers. This action is typical of a trend that is developing among multinationals, and physical infrastructure is also being turned into a strategic tool of global business transformation.

The GCC Landscape of Rising Imperative to Right-Sizing in India

India is the most desirable GCC destination in the world, and it is home to more than 1,900 global capability centers, with a workforce of more than 1.9 million. Firms are also looking to find operations that are both cost-effective and scalable and more resilient in India, particularly in the hybrid work environment after the pandemic.

There are enormous financial advantages:

Savings in operational costs: Hybrid staffing and flexible real estate expenditures save up to 20-30 percent per center of OPEX.
Talent Retention: Since space is dynamically allocated, the employees have access to the collaboration hubs without overcrowded offices.
Scalability: A company is able to contract and expand its footprint in a short time according to the needs of the project or the business cycles globally.

The new trends make it clear that the concept of right-sizing GCCs is no longer a reactive cost-reduction process; this has turned out to be a strategic facilitator of global business change.

Identifying Global Right-Sizing

Right-sizing is confused with downsizing. As a matter of fact, it is concerned with the utilization of resources, spaces, and processes in a way that will lead to maximum efficiency and innovative contribution. The key pillars include:

Role-Based Allocation:

The distinction between innovation teams, operation teams, and automated functions guarantees the maximum utilization of seats.

Analytics of Utilisation Based on Data:

Occupancy tracking based on AI and IoT can help GCC leaders to comprehend the lack of use of the space and the change in work patterns.

Dynamic Workforce Models:

Hybrid and satellite teams also exploit core GCC hubs in Tier-1 cities and cost-effective hubs in Tier-2 or Tier-3 cities like Kochi, Indore or Jaipur.

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Flexible Real Estate Model: Making Space a Strategic Property.

A dynamic real estate model changes the fixed cost liability of GCC office space to a variable and outcome-based resource. Indian GCC leaders have begun to adopt:

Traditional Model	Flexible Real Estate Model	Strategic Advantage
Long-term fixed leases (10–15 years)	Leases of less than 36 months (24 to 36 months).	Economies lose agility.
Single mega-campus per city	Hubs distributed + collaboration pods.	Enhances teamwork and eliminates stress during commuting
Fixed seating & cubicles	Hot-desking, activity-based zones	Maximises the use of seats and hybrid team effectiveness
Centralised decision-making	Artificial intelligence-based capacity and real estate planning	Data-backed decisions enhance cost-effectiveness

A US-based fintech giant with headquarters in Bengaluru saved 18% of real estate expenses by moving 40 per cent of its human resources to flexible collaboration facilities and Tier-2 satellite offices in 2024.

Strategic and Economic Benefits

Real estate right-sizing and flexibility provide short-term financial payoffs and long-term strategic rewards:

Operational Cost Reduction: Flexible space and hybrid scheduling allow firms to save 20-30 percent of energy, maintenance, and real estate OPEX.
Talent Productivity: The access to collaboration zones allows employees to become innovative, whereas daily operational tasks may be relocated to a satellite center that is remote or smaller.
Global Business Continuity: Flexible footprints help eliminate risks of local disruption, of local economic volatility, pandemics, or changes in regulatory frameworks.

Growth Strategy Enabler: The additional funds will be able to be invested in digital transformation and AI integration and higher-level analytics in offshore software centers to increase the global contribution of the GCC.

Recent Information and Data Patterns

Hybrid Adoption: 68% of Indian GCCs currently work on the basis of hybrid or partially remote models.
Expansion of Tier-2 GCC: Kochi, Bhubaneswar, and Indore experienced 15-20 percent per year growth in the lease of office space for GCC operations.
Automation and AI leverage : 42 percent of operational work in global shared services has been automated, and this has led to a lessening of redundant seat demand in main campuses.

These tendencies refer to the definite change of the fixed infrastructure to the flexible, technologically empowered, and cost-efficient one.

Conclusion

The GCC ecosystem in India is changing very fast. The most successful are the ones that match physical space to strategic objectives, deploy technology to the workplace strategy and use flexible real estate to minimize costs without damaging innovation or experience in talent. The focus of global capability centers embracing the right-sizing strategies is no longer about cutting costs but future-proofing, allowing agile global business transformation, and establishing benchmarks in the offshore software and shared services excellence.

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frequently asked questions (FAQs)

What is a Global Capability Centre (GCC)?

A GCC is an offshore facility of a multinational company that undertakes niche roles such as research and development, information technology service and strategic management.

What is the Stand-Up India scheme?

It is a government program that gives the women entrepreneurs up to 1 crore in bank loans to fund greenfield projects.

What are the challenges associated with women in tech?

Personal responsibilities and unconscious bias are the factors that lead to their mid-career attrition and slow them down in their careers.

What is the effect of women leaders in the innovation process?

They introduce new ideas, understanding, and team-oriented leadership that speeds up the advancement of such areas as AI and cybersecurity.

What does the future of women in the leadership of the GCC hold?

By 2030, women are expected to take up 25-30 per cent of GCC leadership positions, which will be paramount to the growth of the Indian market.

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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.