Global Capability Centers (GCCs), also referred to as global in-house centers or captives (GICs), are offshore facilities set up by business and professional houses to offer an array of services to their parent organizations. Within the global corporate structure, GCCs function as internal organizations that offer specialized services like IT support, Legal Support, customer service, research and development, and other business tasks. GCCs are critical in leveraging cost efficiencies, and accessing talent pools.

Establishing Global Capability Centers, which go beyond the conventional low maturity Captive Centers, has proven to be extremely valuable for top global organizations looking to access top talent and international markets.

In order to strategically capitalize on local advantages, reduce expenses, and improve overall business efficiency while staying in line with the aims and objectives of the parent organization, GCCs are formed as independent companies with their own place of business.

1. Location: GCCs are frequently placed strategically in areas that provide a number of advantages, such as a robust pool of talent, an advantageous business climate, and cost considerations. This location may be in a separate geographic area or in the same geographical area as that of the parent organization.
2. Infrastructure: The office space, technology infrastructure, and other facilities needed to support their operations are usually owned by GCCs. A GCC’s infrastructure is tailored to the particular requirements of the activities and tasks that are being performed there.
3. Legal Entity: GCC has a separate legal identity at its place of business as per the local laws. Although GCCs operate independently, they are closely affiliated with the parent organization. To guarantee alignment with the organization’s overarching strategic goals, the GCC and the headquarters maintain constant cooperation and communication.

Global Network: A vast array of multinational organizations run several GCCs in various parts of the world, forming a worldwide network of capacities. Through this network, businesses and professions can take advantage of time zone advantages, access a wide pool of talent, and strategically place themselves in important markets.

1. Shared Service Centers: Finance, HR, IT and procurement are all in one place for efficiency
2. R&D centers: Innovation hubs for new products, technologies, and processes
3. Knowledge centers: to help organizations remotely share information
4. Innovation centers: Companies can develop new ideas, conduct research and build prototypes
5. Customer Service Centers: For managing customer inquiries, complaints, and feedback.

• Early 2000s – Captive Centers limited to BPOs: In the wake of the early 2000s IT and outsourcing boom, multinational corporations contemplated setting up captive centers in India. One of the main reasons was the inexpensive talent pool and the inexpensive real estate costs. GCCs focused on business support and back office duties along with IT support services such as  help-desks and maintenance. Most of the activities were restricted to business process outsourcing (BPO) tasks like customer support, document management, and data processing.

• 2005-2012 – Growth of Global In-house Centers: As captive centers took on end-to-end ownership of the entire global product lifecycle, they became more and more value-added and efficient processes. By creating global in-house centers, the talent pool was used more frequently with the aim of enhancing R&D capabilities and enhancing delivery and process excellence. In order to become GCCs, Global In-House Centers (GICs) started a radical transformation that promoted innovation and digital transformation across the organization’s ecosystem of service and product capabilities.

• 2013-14 onwards – Opening of Centers of Excellence: A greater focus is being placed on high-value tasks like digitalization, gaining proficiency in cutting-edge fields like analytics, machine learning, data science, blockchain technology, artificial intelligence (AI), and product conception. Global corporations are increasingly viewing India as one of the best locations to set up their Centers of Excellence (CoEs) in a variety of multi-function portfolio areas, including banking and financial services (BFSI), information technology (IT), engineering research and development (ER&D), and others.

• EY Survey: 86% GCCs cite service expansion as their top business priority.
  • Diversifying services beyond IT, finance, HR, supply chain to include newer offerings like marketing, legal, ESG, analytics, data.
  • 55% have established a mature data and analytics practice as part of their digital strategy.
  • 77% GCCs continue to operate on hybrid mode.
  • 66% feel that leakage of confidential information due to increased cyber-attacks is a major risk.

  GCC Guide 2023 by JLL: India is home to more than 1,800 global capability centers, which employ over 1.3 million people. These  centers have played a significant role in India’s economic growth, providing high-quality employment opportunities, and contributing to the country’s economy.  Indian cities like Bengaluru, Hyderabad, Delhi NCR, Mumbai, Pune, and Chennai are the most popular destinations offering a conducive environment for global capability  centers in India, with their robust infrastructure, access to talent, and supportive ecosystem. US-headquartered firms account for majority of the operational GCC footprint in the top 6 cities of India, followed by Europe-headquartered  firms (35%).

  The India Brand Equity Foundation: With their sturdy infrastructure, access to talent, and supportive ecosystem, Indian cities like Bengaluru, Hyderabad, Delhi NCR, Mumbai, Pune, and Chennai are the most attractive sites for global capability  centers in India. However, Indian smaller  cities such as Visakhapatnam, Jaipur, Vadodara, Kochi,  Chandigarh and Coimbatore are becoming popular for new ventures due to improved infrastructure, advantageous state legislation, and lower real estate and manpower prices.. US-based corporations account for the majority of the operational GCC footprint in India’s top six cities, followed by European enterprises (35%). The overall number of new GCC establishments each year could reach 115 by 2030. Collaboration with start-ups can operate as a springboard for new GCC establishments and expansion. This collaboration can assist GCCs expedite their innovation journey in India.

  Furthermore, GCCs are growing their operations across different Indian States , and are  exploring new areas of service and acquiring personnel with unique skill sets to execute such new services. The emergence of the GCCs has aided India’s position as a prominent player in the global IT and business services industries. With every passing  year, India’s GCC story becomes more compelling. By 2030, in India the GCC market is estimated to exceed US$ 100 billion, with 2500 GCCs across the country employing over 4.5 million people. With an increasing number of global leadership roles situated in India, the GCCs will continue to rise up the value chain through innovation, product development, and digital transformation.

Infrastructure Support:

1. Seating Capacity: Having separate units at one location helps in expansion and growth of business and therefore with the same ideology, SKJ Juris offers three proposed units with a seating capacity of 28 seats, 17 seats and 6 seats. The 28 seater area has a dedicated Manager’s Cabin. The 28 seater arrangement can be merged with 6 seater and 17 seater as per requirement.
2. Other: Conference rooms, Power Back-up, dedicated EPABX system, access card control system, centralized air conditioners, shared pantry space, shared washroom facility, security personnel.

Expertise: SKJ Juris’ multi functional competencies for establishing their global capability centre comprise consultation & support in an array of services to organizations. Our expertise in diverse services across industries benefit organizations in operating their business effectively that too with complete control concurrently. We not just help orgainizations in setting up their operations but also lend our support and expertise in accessing local talent pool as per requirements of organizations. Apart from this, we also ensure smooth functioning of the operations of the organizations in compliance with their regulations/ policies.

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