Global Capability Centre

India has become the top destination for GCCs globally due to a combination of the quality of talent available, the cost efficiencies available, and its location, providing access to new markets and expanded time zone coverage. More specifically, India has the second-largest population in the world, elite universities, and a high level of English fluency, providing a massive tech talent pool, many of whom are able to communicate seamlessly. The mature, offshoring ecosystem means there is plenty of support for new GCCs and favourable tax and legal measures to start and operate one. This is why India has more than 53% of all the GCCs in the world, with Bangalore accounting for more than three-quarters of all of India’s GCCs.

The Scalers offshore model is all about long-term success by establishing a firm foundation from the start. We do this by taking the time to truly understand our partners’ needs and offering advice on the local talent market and the challenges and opportunities it presents. Then our turnkey recruitment operation seeks out the first key hires, typically more senior level, to ensure quality and deliver immediate results. They are fully onboarded into our partners’ systems, workflows and culture, which leads to better quality results and higher engagement. With this foundation in place, we are able to scale rapidly for additional roles and functions following the same system. As we do, the initial hires become the key representatives for onboarding new hires and ensuring their integration into the company. During this process, your dedicated Partner Success Manager will make sure everything is running smoothly on the ground and handle any issues you have, while your assigned Chief Happiness Officer will take care of your new hire’s needs and keep them engaged through regular activities.

Historically, development skills in niche programming languages, as well as experience in specific industries. While these are still important, in recent years, specific skills have become more important. These include AI and ML skills as more companies seek to leverage these innovations in effective ways, AI-skilled employees (who can leverage generative AI tools effectively), and more leadership roles which previously would have been located in Western HQs.

Both models provide ways for companies to leverage global talent with greater ownership and control than traditional outsourcing. The key difference is the roles and functions that are covered under each model. With an ODC, the focus is on hiring experts to carry out research and development functionalities in cost-effective talent hotspots. While other functions may be hired, these are typically in far fewer numbers and just to support the R&D team. In a GCC, a company may hire skilled staff for multiple of their functions, allowing them to find the talent they can’t find at home, saving on overheads, and extend their operations into new markets.

GCCs provide talented individuals in offshore locations the chance to work for international companies where their work makes a tangible difference. The prestige is attractive for some, while the opportunity to deliver meaningful work matters for many others. Both of these reasons are significant pull factors compared to working for an outsourcing company, and the latter can help attract quality workers from global corporations. To retain top talent, GCCs need to provide attractive salaries, growth opportunities, and regular engagement activities so that they create an attractive work environment.

Project-based outsourcing is best for limited-time, and limited-scope work where time is the key factor. This makes it a great option for a startup or smaller companies with platforms that don’t require constant development. In the long run, however, it becomes more expensive and doesn’t provide the ownership that companies require. In these situations, a tech-led GCC is the better option as it provides a strategic offshore asset to leverage global talent that can expand with additional functions as required.

A Tech-led GCC is one that is focused on delivering technological innovations, not just supporting general operations globally. This focus on innovation means that the GCC will have a larger number of roles focused on assisting the company’s R&D efforts in order to aid faster product innovation. This is possible with the massive specialised talent pools in the offshore locations where GCCs are established. In addition, by focusing their R&D effort in one centralised location, it enables great cross-team collaboration and can help reduce development cycles.

In traditional outsourcing, you are limited to the resources the outsourcing company has available. In some cases, you may be able to secundum a resource who is otherwise engaged in another project, but in such a case, you may find the same happening to you. In contrast, a GCC hires dedicated employees for your exact job descriptions. This takes slightly longer, but it means you get the exact skills you need and they stay with you for the long run.

GCCs, like many other offshoring models, were initially seen as a cost-saving measure to leverage lower overheads offshore, but often at the expense of quality and control. In more recent years, a series of factors has driven demand for a new form of offshoring that focuses on quality. First, the standards of offshore employees have risen dramatically over the years as education standards have risen and the ecosystem has matured. Second, remote collaboration tools have become the norm, especially since COVID-19 lockdowns, which have streamlined global collaboration. Finally, the skyrocketing prices of local talent and local skills gaps have driven demand for offshore innovation hubs such as GCCs.

When implemented properly, GCCs help to mitigate organisational risk due to their presence as an additional location that can continue operations and scale if the situation changes in another location of the company. However, this requires proper risk management when they are set up to ensure the company has complete ownership over IP, compliance with regulatory requirements and proper security in place. An experienced GCC partner like The Scalers can help enable partners to achieve these goals via their experience in local legalities and collaboration in ensuring all workspaces are fully secure and compliant with regulations.