How to setup a Global Capability Centre (GCC)

A Global Capability Centre (GCC), also known as a Global In-House Centre (GIC), is a dedicated offshore or nearshore unit established by a company to leverage talent, cost advantages, and market access in a specific region.

A survey indicates that 65% of companies confirm that their GCCs play pivotal roles in Research and development, shaping digital transformations and leading the way to product innovation GCCs serve as a strategic extension of the parent organization, offering a wide range of services such as software development, research and development, finance and accounting, analytics, and more.

Here are a few key steps in setting up a Global Capability Centre (GCC) that will ensure that they are transformed from being cost drivers to strategic business enablers and value creators:

1. Understanding the Purpose and Scope:

Identify the GCC's precise aims and objectives. Determine the competencies and areas of knowledge that the center will concentrate on. Describe the operations' scope in detail, taking into account the areas it will service.

2. Business Plan Development:

Put together a thorough business plan that details the GCC's strategy, financial forecasts, organizational structure, and governance. Describe the intended operational model, outlining the GCC team's duties and responsibilities as well as its connection to the parent company.

3. Outlining Legal and Regulatory Conditions:

Companies will need to create legal organizations, acquire the required licenses, and abide by all applicable local rules and ordinances when setting up a GCC in a new location. To guarantee compliance and reduce any dangers, acquiring legal counsel during this process is higly advisable.

4. Talent Acquisition and Development:

Hiring the right talent is a cruicial step in the GCC setup process. Companies will need to specify the knowledge and abilities that the GCC team needs in order to reach their desired aims and objectives. Create a recruiting plan that makes use of university collaborations, local job boards, and hiring recruitment firms in order to draw in top talent. Create training and development initiatives to improve the GCC team's competencies and guarantee continued education and advancement.

5. Perform a feasibility analysis:

Examine the viability of creating a GCC, taking into account elements including talent availability, market need, cost analysis, and legal and regulatory issues. Consider aspects such as infrastructure, cost of living, talent pool, level of support from the government, and business environment while evaluating possible sites.

6. Funding:

Seek assistance and endorsement from top-level management at the parent company. Resolve any doubts or worries while outlining the GCC's strategic importance and advantages.

7. Infrastructure and Technology:

Lease agreements, safe office space, and required infrastructure (networks, computers, etc.). Assess and put into place suitable technological solutions, like project management software, collaboration platforms, and communication tools, to support GCC activities.

8. Collaborate with Parent company and other Stakeholders:

Develop connections with important external and internal stakeholders of the parent organization. Find possible partners or customers with whom to work together to provide value-added services. Establish relationships with regional authorities, business groups, and educational establishments to create alliances and obtain assistance.

Conclusion

Global Capability Centres offer immense potential for organizations aiming to enhance their capabilities, drive innovation, and expand their global presence. GCCs provide chances for expansion, cost savings, and access to a skilled labor, but they also present difficulties with talent retention, cultural differences, and communication barriers. Businesses considering the creation of a GCC may make well-informed judgments by being aware of these benefits and drawbacks.