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 Shared Services to GBS: Enterprise Evolution

A multinational’s head of finance has described the weekly ritual of having to put together eight country reports that were never reconciled, of rising expenses, and of stopping decisions. These days, organisations are making up for the time spent on Global Shared Services and Global Business Services (GBS) as strategic operating models because they are frustrated with inevitability. The latest surveys in the industry reveal that almost half of the GBS organisations intend on expanding their presence, demonstrating a definite move away from an isolated cost centre to a hub of capabilities.

The Relevance Of The Shared Services Model

Shared Services Model (SSM) is a model whereby repetitive and transactional operations such as finance, human resources, procurement, information and technology and customer operations are centralised in a Shared Service Centre (SSC) or Global Business Services. The standardisation of procedures, the calibre of data, and the platform for automation and analysis are all benefits of this consolidation in addition to the payroll reduction. Industry studies project that shared services implementations can reduce operational costs by 25-50 per cent depending on scope and level of automation and also provide the capacity for doing higher-value work.

Meanwhile, the expenditure on enterprise technology, particularly AI and automation, only increases, which produces a multiplier effect: GBS units that invest in intelligent automation and data platforms get disproportionate efficiency and insight. IT spending on AI and infrastructure is increasing, and this leads to direct GBS transformation agendas.

The Way Global Shared Services Operates

The functioning of a modern Shared Services Center is based on three interconnected pillars:

Uniqueness of Processes: All markets have similar procedures and KPIs.
Government and Compliance: International policy and local adjusters.
Digital platforms and SLAs: The main platforms, transparent service-level agreements, and outcome-based reporting.

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This stream helps to shed light on the fact that Shared Services is an in-house service provision whose mandate cuts across cost, quality and insight.

Strategic Value Beyond Cost

It is narrow-minded to label GBS as cost reduction. The strategic strengths are:

Consolidated reporting leads to faster and higher-quality decision-making.
Risk and compliance control through centralised procedures.
Talent concentration: SSC or GBS receive specialised capabilities (analytics, process excellence).
Scaling automation and AI platforms, transforming transactional work into an insight.

According to a recent survey, organisations are positioning GBS as agile and digital value-based 50 per cent of those surveyed intend to expand their footprint through new functions and capabilities and not through pure labour arbitrage.

Creating a Lasting Shared Services Strategy.

A viable Shared Services Strategy is based on a balance between global standardisation and local flexibility:

Identify functions which provide the greatest benefit in scale and standardisation (e.g., accounts payable, payroll).
Select sites that combine the optimal combination of cost, talent and time zone.
Define governance – Clear RACI, KPIs and a business mindset (internal chargebacks where necessary).
Invest in people and technologies – Automation, data platforms and continuous reskilling.

Possible Pitfalls And Their Prevention.

Avoid excessive centralisation which disregards local regulatory subtlety.
Avoid considering SSC as a cost facility alone.
Avoid being insufficiently invested in change management.

The successful programmes are a mix of quantifiable quick gains (transactional automation) and a journey towards analytics, robotics, and ability establishment.

Table: Strategic vs Economic Advantages.

Benefit category	What it delivers	Example KPI
Strategic	Decision speed, enterprise insight	Time-to-close; % decisions based on single source of truth
Economic	Direct cost reduction, operating leverage	Opex reduction %; FTE reduction in transactional roles
Operational	Adherence to compliance, quality, and SLA adherence.	Error rate; SLA compliance %
Talent/Capability	Analytics, process excellence	% workforce in upskilled roles; automation bots deployed

GBS As An Enabler Of Growth

Global Shared Services will gradually evolve into a strategic Global Business Services centre, not only providing transactions but also creating information, collaborating with commercial units, and increasing enterprise agility.

Through further investments in generative AI, automation and data platforms, GBS organisations are set to be a source of growth, rather than efficiency. According to market projections from leading analysts, in-house delivery centres and GBS will remain one of the primary tools for enterprise transformation in 2025 and beyond.

Conclusion

An effective Shared Services Model and Shared Services Center is not just a cost lever. It is a resilient, data-driven and scalable operations architecture. In the case of modern enterprises, the transition to strategic GBS is no longer an option but a step-by-step process of shifting to shared services and vice versa.

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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.