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.

GIFT City: India’s Global Innovation Hub for Semiconductors

A leading memory chip manufacturer has announced that it is going to locate a large-scale assembly and test plant in Gujarat, in India. This is not one plant but a signal that the global semiconductor investment wants to have innovation and capital take root. Multi-phase operation in Gujarat and India has triggered investor confidence in Micron and has also proved that an integrated design from finance to manufacturing strategy is workable in this area.

The Indian semiconductor market is growing fast: the most recent market data suggest high growth in the mid-decades, as domestic electronics demand, EV uptake, and AI compute requirements rise. There are some estimates that show that the India semiconductor market today is in billions and is expected to grow unambiguously to the end of the decade. This macro tailwind and the combined effect of national incentives and 23 projects of approved chip designs under the Design-Linked Incentive (DLI) scheme make India a busy chip innovation and investment destination.

The Value Proposal of GIFT City.

GIFT City integrates financial architecture and smart infrastructure in a manner that directly fast-tracks semiconductor projects:

Cross-Border Capital Flows / IFSC Advantages – Allows dollar denominated financing, fund formation and access by global investors.
Tax and Regulatory Efficiencies – IFSC incentives, arbitration frameworks and simplified approvals lead to reduced time to market costs and financing costs.
Close to Ecosystem Partners: In finance and IP licensing in GIFT City, and design and engineering talent in Bengaluru/Hyderabad reduce the time of coordination.
Intelligent Infrastructure: Data centres, high-availability power, and business grade connectivity that can support chip design and high-value services.

These characteristics make GIFT City a strategic Global Innovation Hub of semiconductor firms that want to enjoy capital and operation benefits.

Semiconductor Giants to India and GIFT City

Large players in the world are no longer relegating India to low-cost assembly. Firms are establishing a distributed model. R&D design and software in the talent centres of India like financial engineering and IP/royalty management in GIFT City and manufacturing/ATMP investment in Gujarat and related states. External Investments do massive commitments, and toolmaker alliances ratify the strategy and reinforce the local supply chain.

Economic Advantages

Reduced Total Cost of Operation: Combined incentives and competitive labour costs can lower the unit economics of non-leading-edge production and design centres.
Tap into a Developing Domestic Market: The onshore customers and pilot activities generated by the rapidly improving consumer electronics and automotive electronics needs of India.
Finance & IP efficiency: GIFT City IFSCs facilitate efficient capital allocation, fund structuring of fabs/ATMP and easier IP monetisation.

GIFT City’s Advantage for Semiconductors

Factor	GIFT City Advantage	Impact for Semiconductor Ecosystem India
Capital Access	IFSC enables dollar-denominated funding, global VC/PE access, profit repatriation.	Simplifies funding for fabs & ATMP, reduces financing risks.
Tax & Regulation	10-year tax holiday, low corporate tax, global arbitration norms.	Attracts foreign semiconductor giants, eases compliance.
Talent Pipeline	Close to IITs, design talent in Bengaluru & Hyderabad.	Ready engineering base lowers hiring and training costs.
Market Growth	India electronics market projected at $300B by 2026.	Local demand creates immediate customers for chipmakers.
Infrastructure	Smart city planning, reliable power, data centres, digital governance.	Provides stability for R&D and operations.
Policy Support	$10B Semiconductor Mission, DLI scheme with 23 projects approved.	Drives growth in design, testing, and advanced packaging.
Supplier Confidence	Micron ATMP facility, toolmaker expansions (e.g., Applied Materials).	Builds trust and strengthens supply chain localisation.

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Future Perspective

India is building a complete stack-value-chain with design incentives (DLI projects are already approved) and with the sustained equipment and toolmaker interest. GIFT City will become a site of specialized funds, IP holding companies, and innovation-finance vehicles that lower the cost of capital in semiconductor projects making financial services, in effect, an accelerator in chip R&D and industrialisation.

Conclusion

The combination of finance, policy stability, and contemporary infrastructure make GIFT City a realist Global Innovation Hub in the Indian semiconductor narrative. With the global convergence of design & manufacturing capability, and global capital GIFT City will be at the centre-stage of reducing the time, cost and risk of commercialising semiconductor ideas in India and to the global markets.

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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.