The most effective way to predict the future is by shaping it yourself! Yes, in 2025, enterprises around the world are not waiting for the future; instead, they are building their own future. With the evolution of new technologies and increased customer expectations, as a business, you need smarter ways to work, grow, and stay ahead.
One such way to become the future is by setting up your Global Capability Centers (GCCs). It is the smartest approach to place your teams in different countries to ensure a smooth and efficient workflow. It helps you to innovate, save costs, and dive into global talent. Read on to know more about it and why more enterprises are turning to it!
What are Global Capability Centers (GCCs)?
A Global Capability Center is an offshore unit of an enterprise or a business, located in a foreign country apart from its headquarters. These centers are often leveraged by the Multinational Corporations (MNCs) to centralize and manage various business functions. It includes IT, Research and Development (R&D), analytics, finance, customer service, and more.
In particular, these enterprise offshoring solutions are also referred to as Captive Centers. They aim to set up in cost-effective regions with specialized talent pools.
Reason for the Rise of GCCs?
There are several reasons that contribute to the quicker evolution of the GCC model in 2025. Here are some of them:
Agility and Innovation
Being agile is one of the significant factors of every enterprise. It helps you to stay relevant to the trends of the world while becoming innovative in the market. For that, GCCs give you a space to experiment, test, and build new ideas. With skilled people and access to tools like AI, cloud computing, and Machine Learning, it helps companies move faster and be more creative.
Low Cost and Easy Setup
Setting up a GCC in countries like India, Eastern Europe, and the Philippines is lower cost when compared to other countries. This is because there are skilled professionals in the field of software, data, and analytics that each business can hire and build a branch with cost efficiency in global operations. IT talent from India and other countries can be hired as a pool here.
Building Digital Workspace
Ever since the COVID-19 pandemic, the whole world has been processing over the internet. The workspaces are converted to remote locations, making the workflow possible anywhere and everywhere. GCCs strive hard to make this possible for their businesses. They become flexible working remotely and help businesses adapt to digital systems and automated tasks.
Business Continuity
Nowadays, many businesses have been working around the clock, which means, their workflow never stops, it runs 24/7 every day. This doesn’t mean that the workers are under complex work timings. It means that the work is perfectly managed in a way that people are working at different times from various locations, which keeps the business continuity through GCCs.
Access to Wider Talents
Since GCC is all about getting a foreign branch for a business, it automatically gets access to a wider network of talents and skilled professionals. This builds your branch with diverse people belonging to all sectors from development to research teams. With such diversity and expertise in one place, businesses can drive innovation faster and solve problems more creatively.
What is Unique About GCC?
The unique feature about GCC is its ability to transform into changes that are new and useful for businesses. For example, the whole world is running behind AI and automation. In a positive manner, GCC has integrated them to enhance productivity, product development, and data analytics.
It involves testing and implementing smart technologies that can handle repetitive, manual processes faster. Similarly, GCCs often act as innovation labs where new AI models, chatbots, data analytics tools, and process automation systems are developed and tested. Once proven successful, these can be rolled out to other parts of the company across the globe.
Strategies Used in GCCs
There are two different strategies used in GCCs. Those include the Build-Operate-Transfer (BOT) strategy and offshore delivery centers. Now, let’s check what those strategies are:
Build-Operate-Transfer Strategy
The BOT strategy is one of the project delivery methods, involving a third party setting up and running the center initially. Once operations are stable, the ownership and control are transferred to the parent company for long-term management and growth. Here, let’s check what BOT does:
- Build: A third-party will initially set up the GCC, and handle tasks related to infrastructure, hiring, and technology.
- Operate: It involves managing daily operations while aligning with the parent company’s goals.
- Transfer: Full ownership is handed over to the parent company once the center is stable.
Offshore Delivery Centers
An example of offshore delivery centers is the Offshore Development Center. It allows you to work in a foreign country for various IT-related tasks. They are the specialized units located in low-cost countries to handle services like software development, IT support, and business operations. They enhance the efficiency and scalability of GCCs, making them a vital part of global business strategy.
GCC vs Outsourcing
When comparing GCC vs outsourcing, the difference is clear. Outsourcing gives tasks to third parties with limited control, while GCCs offer full ownership, better quality, and closer alignment with business goals. For sustainable and future-ready growth in your business, investing in GCCs is proving to be a smarter, more strategic move.
Wrapping Up
In 2025, enterprises are turning to Global Capability Centers to stay agile, competitive, drive innovation, and access global talent in a cost-effective way. They are no longer just support units; instead, they have become strategies that contribute directly to business growth and digital transformation. What are you waiting for? Start investing in GCCs to become a key factor in long-term success and resilience!
FAQs
Does Amazon have its GCC?
Yes, Amazon has its own GCC in various countries like India. These centers focus on areas such as software development, customer support, and data analytics to support Amazon’s global business operations.
Where are GCCs Usually Located?
GCCs are often set up in countries with large talent pools and cost advantages, such as India, the Philippines, and Eastern Europe.
Are GCCs only for IT-related Work?
No, GCCs handle a wide range of functions including finance, HR, legal services, research, and customer support, beyond just IT.