Unlocking the Potential of Global Capability Centres in India: A Deep Dive Into Cost Optimization and Innovation
Global Capability Centres (GCCs) in India have been at the forefront of innovation and cost optimization for businesses across the globe. These centres have become an integral part of global organizations and have helped them to achieve higher levels of efficiency and profitability. In this article, we will explore the potential of GCCs in India and how they can unlock tremendous value for businesses.
What Are Global Capability Centres?
Global Capability Centres (GCCs), also known as Global In-house Centres (GICs), are offshore centres established by multinational corporations to provide a range of services to their parent companies. These centres typically handle functions such as research and development, IT, finance, human resources, legal services, and analytics. GCCs are set up in countries with a competitive cost base and a skilled workforce, and India is one of the preferred destinations for GCCs due to its large pool of talented and inexpensive professionals.
The Benefits of Global Capability Centres in India
GCCs in India offer various benefits to businesses, including cost optimization, access to a skilled talent pool, and increased productivity. Here are some more details on these benefits:
Cost Optimization
One of the primary reasons why businesses set up GCCs in India is to reduce costs. Labour costs in India are much lower than in developed countries such as the US and the UK. Moreover, there are various tax incentives and subsidies available from the Indian government, which further reduces the cost of running these centres. GCCs in India can help businesses to save up to 50% on their operating costs.
Access to Skilled Talent Pool
India has a vast pool of talented professionals across various domains such as engineering, technology, finance, and accounting. GCCs in India can tap into this talent pool and hire skilled professionals at a lower cost than in developed countries. Moreover, the quality of talent available in India is often superior to that available in other countries. Employees in GCCs in India are highly educated, proficient in English, and possess excellent technical and professional skills.
Increased Productivity
GCCs in India can help businesses to increase productivity by leveraging the time zone difference. This means that work can be completed overnight, and the output can be available to the parent company the next day. Moreover, GCCs in India typically have a work culture that focuses on efficiency and productivity, which translates into higher output and better quality of work.
Case Studies
Various businesses across different industries have set up GCCs in India and have reaped the benefits of cost optimization and increased productivity. Here are a few case studies:
Coca-Cola
Coca-Cola has set up a GCC in Hyderabad, India, which provides IT services to the parent company. The centre employs over 2,000 professionals and has helped the company to reduce its IT costs by over 50%.
UBS
UBS has set up a GCC in Pune, India, which provides financial services to the parent company. The centre employs over 2,500 professionals and has helped the company to save over $250 million in costs.
GE
GE has set up multiple GCCs in India, which provide various services such as IT, research and development, and engineering. These centres employ over 15,000 professionals and have helped the company to improve productivity and reduce costs.
Conclusion
GCCs in India have become an integral part of global organizations and have helped businesses to achieve higher levels of efficiency and profitability. These centres offer numerous benefits, including cost optimization, access to a skilled talent pool, and increased productivity. By leveraging the benefits of GCCs in India, businesses can unlock tremendous value and gain a competitive advantage in the global marketplace.
