Traditional outsourcing involves companies hiring third parties to provide certain services or products. These could include IT support, manufacturing, recruitment, and more. It offers flexibility and is cost-effective, allowing businesses to cut short-term costs.
In comparison, Global Capability Centers (GCCs) function as wholly-owned subsidiaries of multinational corporations. Companies have direct control over their operations, processes, and quality. They also often require more upfront costs to set up. They are usually located in cost-effective, talent-rich zones and provide specialized services like:
- Research and Development
- IT Support
- Financial Management
- Back-end functions
- Data Analytics
