There are more than 1800 GCCs in India. In FY24, reports show that their export revenues increased to USD 65 billion, 40% more than the preceding year.

The hybrid mode of entering international business is also known as the BOT model (Build-Operate-Transfer). It involves an organization contracting with a contractor to create and set up an entity for some time. The GCC is handed back to the parent organization after the infrastructure, operations, and employee acquisition are complete.

The BOT model (Build-Operate-Transfer) works in steps. At DCT, our model offers end-to-end support to multinational corporations.

1. New Legal Entity: Our BOT model allows clients to launch their presence in India. DCT offers support services, infrastructure, and business registration. It also helps companies adhere to tax regulations and obtain the required licenses.
2. Standardized GCC Playbook: DCT is accredited with HIPAA, ISO27001, DSCI, and HITRUST. It utilizes its domain and tech expertise to create compelling models beyond what traditional BOT models provide.
3. Talent Recruitment: DCT has developed a comprehensive talent acquisition strategy. The BOT model also provides branding and visibility, multi-channel sourcing, and employee referral programs.
4. Collaborative and Transparent Operation: DCT collaborates with clients to ensure seamless finance, legal, HR, administrative services, and other operations.
5. Ownership Transfer with a BOT Model: After setting up well-designed workplaces, skilled employees, leadership models, and other business operations, the BOT model ensures a smooth transfer of operations to the client’s organization.

There are several reasons why GCCs are flourishing in India. These include:

1. Availability of Talent: India is home to large pools of skilled professionals in every primary industry, including IT, engineering, AI and Machine Learning, finance, data analytics, and human resources.
2. Technological Hubs: Indian GCCs rapidly adopt advanced technologies like AI, machine learning, and IT, enabling them to deliver innovative solutions and drive digital transformation for parent companies.
3. Cost Competitive: Compared to other locations, the costs to set up GCCs and operations in the country are far lower, making it an attractive option for companies wanting to optimize their operations.
4. Government Initiatives: The Indian Government has been heavily supporting the establishment of GCCs in the country, which creates favorable conditions for organizations to flourish.

DCT finds that one of the best site locations for GCCs in India is the Pune-Mumbai corridor. It offers the optimal balance for establishing Global Capability Centers. With more than 170,000 professionals in Mumbai, the city offers a vast and diverse talent base in engineering, research and development, information technology, and business process management. Pune is also home to over 160 institutions offering STEM programs, contributing to a talent pool of almost 200,000 professionals. Compared to other cities, Pune also has lower labor costs while maintaining high-quality talent. While the Pune-Mumbai corridor is ideal for setting up GCCs in India, DCT can help corporations establish operations in any major city in India, including MP, Mumbai, Pune, Delhi, Chennai, Hyderabad, and Bangalore.

GCCs provide a wide range of services. Some examples include :

• Human Resources
• Back-End Services
• Research and Development
• Financial and Accounting Services
• Data Entry and Analytics
• IT Support

DCT helps organizations launch their GCCs in India by hiring resources under the DCT India Company. We support businesses every step of the way, from registering to complying with relevant regulations, taxation policies, and labor laws. DCT also helps set up the proper infrastructure, recruit talent, and manage efficient operations.

Some popular global organizations with GCCs in India include:

• Amazon India Development Center
• JP Morgan Chase India
• Microsoft India Global Delivery
• Goldman Sachs Services India
• Citi Global Services India

Business Process Outsourcing, or BPO, involves outsourcing non-core business functions to other third-party vendors and service providers. This could include data entry, human resources, accounting, and technical support. On the other hand, Global Capability Centers are offshore establishments that are part of the parent organization. These offshore entities provide valuable services, such as infrastructure, talent acquisition, R&D, and more, focusing on cost-effectiveness.

GCCs are valuable additions to global organizations. They offer cost-effective solutions for R&D, finance, analytics, IT support, and countless other services. They have evolved from being low-cost offshore establishments to real drivers of growth and revenue, scalability, client-facing services, and more. India is one of the GCC capitals of the world, with more than 1800 centers across the nation.

India hosts over 1800 Global Capability Centres, which employ about 1.3 million people nationwide.

Centers of Excellence are dedicated departments or teams that develop expertise in a specific area. They are adaptable entities formed within the organization and used to address evolving challenges, technological advancements, and changing market dynamics. On the other hand, Global Capability Centers are offshore establishments where multinational corporations leverage resources, skilled talent pools, and low-cost infrastructure for IT support, data analysis, finance, and more. While CoEs are teams that focus on a specific area of expertise, GCCs perform a more comprehensive range of tasks and operations.

Global capability centers offer cost-effective solutions for back-end office support. They provide R&D, IT support, financial support, and other services. GCCs are also talent acquisition hubs and help organizations streamline their operations to maintain a competitive edge in the market. At DCT, for example, GCCs have become integral parts of our business strategy. We aim to help clients build, manage, and scale high-performing global capability hubs.

Global Capability Centers have a plethora of benefits for large corporations. These include:

1. Saving on Costs:They provide global organizations with cost-effective solutions to improve their operations. This is achieved by setting up GCCs in cost-effective locations. In India, DCT helps multinational corporations set up their GCCs in locations across the Pune-Mumbai corridor, Delhi, Chennai, and more.
2. Access to Talent:GCCs provide multinational organizations with access to talent pools with specialized skills and expertise.
3. Improving Operations:GCCs play a crucial role in streamlining and enhancing operational efficiency. They adhere to high-quality standards, implement the best practices, and can be fully monitored and controlled by the parent organization.
4. Better Risk Management and Compliance: GCCs ensure that organizations meet regulatory standards, implement privacy measures, adhere to government regulations, tax laws, data security, and privacy standards, and provide risk mitigation strategies and internal controls.
5. Allowing for Scalability: By leveraging GCCs, companies can respond more efficiently and quickly to evolving customer needs and ever-changing market demands. This is due to their scalable operations, flexible resource allocation, and low costs.

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

Global Capability Centers are offshore establishments set up by multinational organizations. They provide high-quality services to the parent entities. They have contributed significantly to the corporate landscape in India, attracted skilled talent and professionals, and developed world-class office spaces. DCT’s GCCs are fully accredited with HIPAA, HITRUST, and DSCI. They also comply with ISO 27001 and ensure quality and consistency in service management.