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.

Standardizing India's Global Capability Centers

The story of Global Capability Centers (GCCs) in India is one of phenomenal success. Over the last five years alone, the sector has witnessed an astounding 53% growth, transforming India into the undisputed hub for global corporate functions, technology innovation, and strategy.

But is this growth sustainable? At the recent Global Capability Center Summit, a powerful and provocative question was posed by Prof. Mahadeo Jaiswal, Director of IIM Sambalpur and a distinguished academic leader with deep expertise from institutions including Carnegie Mellon University (CMU). He argued that to move beyond ad hoc success and secure an unshakeable, globally resilient “India GCC” brand, the ecosystem must adopt a standardised Capability Maturity Model (CMM).

This is a strategic mandate to transform organic growth into a systematic, branded, and globally recognised ecosystem of excellence.

The Vulnerability Beneath the Boom

Today’s GCC boom is undeniable, driven by a perfect storm of talent availability, cost efficiency, and increasing corporate mandate for digital transformation. However, Prof. Jaiswal highlighted a critical vulnerability.

“The current growth of GCCs, while spectacular, is often built on individual brilliance rather than institutional process,” he stated. “When excellence relies on a few key managers or engineers, the entire system is vulnerable to churn. This is a house built on sand.”

The challenge is a lack of standardisation. Many GCCs operate in silos, creating their own processes from scratch. This absence of a common framework for process management, quality assurance, and innovation scaling prevents the entire ecosystem from pooling knowledge and presenting a unified, high-quality offering to the world. To guarantee future resilience, India must codify its best practices.

Learning from History: The CMM Analogy

To illustrate the transformative power of standardisation, Prof. Jaiswal drew a compelling parallel to the Indian IT Services sector of the 1990s.

Before standardisation, Indian IT firms were often viewed with scepticism regarding quality and reliability. The introduction and widespread adoption of the Capability Maturity Model (CMM), an early framework for assessing and improving software development processes, shifted everything.

“The CMM model didn’t just certify competence; it gave us the ‘India IT’ brand, a global seal of quality and trust,” he explained. “It provided a common language for quality, built unprecedented global confidence, and fuelled the exponential growth of the industry. We must replicate this success story for GCCs.”

The levels of the GCC aim to be the next-generation CMM, establishing a baseline of quality assurance and continuous improvement that all GCCs, regardless of size or parent company can adopt and be certified against.

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The Proposed 5-Level Maturity Model

The core of Prof. Jaiswal’s proposal is a five-level maturity model specifically tailored for the complexities of modern Global Capability Centers. This framework integrates three vital pillars: Business Strategy, Technology Excellence, and Disruptive Innovation.

The proposed levels define a clear, scalable roadmap for every GCC in the country:

Level 1: Ad-Hoc
- Description: Processes are informal, poorly documented, and reactive. Success is dependent entirely on individual heroes and immediate firefighting. This is the entry point for new, nascent centers.
Level 2: Project Management
- Description: Basic project management standards are in place. Projects are tracked, but processes are still often defined project by project rather than across the entire center.
Level 3: Defined Processes
- Description: The institutionalisation of the center begins. Standardised processes are documented and used across the entire organisation. Training programmes are based on these institutional standards. This is the benchmark for reliable delivery.
Level 4: Managed & Measured
- Description: Detailed metrics and measurements are established for both process and product quality. The focus shifts to quantitative process management and predicting outcomes. Data drives improvement cycles.
Level 5: Optimized
- Description: The organisation focuses on continuous process improvement and innovation. Technology, process changes, and talent development are actively managed to optimise performance and introduce disruptive services. This is the global center of excellence.

“GCC 5.0 is not just an upgrade; it is a declaration that India is moving from being a back-office service provider to the central engine of global business strategy,” said Jaiswal. Achieving Level 5 signifies a GCC that is actively driving its parent company’s innovation agenda.

A Call for Unified Collaboration

The creation and implementation of a national-level maturity model cannot be achieved by a single entity. Prof. Jaiswal made a strong call for collaboration across three key pillars:

Academia: Institutions like IIM Sambalpur, IITs, and global university partners must lead the research to define the framework, validate the metrics, and develop the talent pool capable of implementing the model.
Industry: The GCC Council and industry leaders must provide subject matter expertise, pilot the model within their centers, and drive consensus for adoption.
Government: State governments and central policy-makers must provide the necessary policy and infrastructure backbone. This is crucial for distributing the boom beyond Tier 1 cities.

Prof. Jaiswal highlighted the strategic importance of state initiatives:

“Various state governments are coming out with the policies where they are providing the best services in terms of their taxation and in terms of centre of excellence, and we are providing land and all kinds of power supplies and infrastructure. I come from Odisha, where Bhubaneswar is now being focused on by the state government to create a centre of excellence in financial services, FinTech. So a lot of fintech companies are coming, leaving Singapore and coming to Bhubaneswar.“

This decentralised growth, supported by government-created Centres of Excellence (CoEs) and infrastructure provision, is key to creating a truly national and resilient GCC footprint, attracting investment, and fuelling growth in Tier 2 and Tier 3 cities.

Securing India's Long-Term Lead

The GCC sector is at an inflection point. The choice is stark: continue with phenomenal but potentially unstable organic growth, or take a strategic leap to secure India’s position as the permanent, trusted, and long-term leader in global capability delivery.

The GCC 5.0 proposal is a strategic move to build an institutional brand for India’s GCCs that is independent of individual corporate fluctuations. By adopting this common language of quality and maturity, GCC managers of today will be laying the groundwork for the next generation of global strategic leaders.

The future is not just about scale; it is about unquestionable quality. With the GCC 5.0 framework, India stands ready to make that promise a certifiable reality.

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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.

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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.