What is a GCC?

A GCC is a Global Capability Center, essentially offshore or nearshore talent leveraging units. They are typically a part of big multinational corporations and offer their services in various fields like IT, Research and Development, Human Resources, Analysis and Data Management, etc. GCCs provide a fully formed team of professionals for any particular department, sparing the parent company the burden of finding and training newly hired talent.

GCC for IT needs

GCCs are growing at a fast rate, and the appeal of these centers lies in their cost-effective solutions. If speaking about India in particular, data suggests that GCCs may trump traditional companies in hiring this year. With 1,580 registered GCCs, the growth graph for these companies is steadily rising. Why are MNCs opting for GCC services now?

Although GCCs have been around for a while, engaging in their services is more lucrative than ever currently. Reports suggest that with inflation rising, companies are looking to cut costs and outsource their IT needs. This is where GCCs come into play. One of the reasons why companies should opt for setting up a GCC in India is because India is leading the list in the number of GCCs established, and it has a competitive advantage compared to other countries- a highly skilled pool of IT talent, available at lower costs. India has been the go-to option for global IT outsourcing needs, so it is no surprise that it is leading in GCCs as well. There are several other reasons for hiring a GCC, which we will now discuss.

Advantages of (GCC) as a Service

Through the utilization of advanced technology, a strong ecosystem, and highly qualified personnel, GCCs provide their parent companies with vital operational and strategic advantages.

1. Cost Efficiency–

Companies can fully depend on GCCs to provide them with a highly skilled team for various departments at a low cost which outshines hiring people by themselves. With IT being one of the most popular services in India, companies can rest assured knowing their needs are well met.

2. Access to Global Talent-

GCCs allow MNCs to tap into the global talent pool, particularly in nations with a reputation for having specialized knowledge, like India for software and IT development. Their functions are more innovative and of higher quality as a result of this access.

3. Streamlined Focus-

With the help of GCCs, companies can outsource functions that are not in their area of expertise and focus on their main product or services, which allows them to streamline their work and perform more clearly. Particularly, IT management requires a considerable amount of time, resources, and expertise. Hiring a GCC frees up their internal teams for tasks relevant to their main service or product.

4. Scalability and Flexibility-

Ordinarily, if a company were to hire more people for a particular team, it would require a substantial amount of time and money to be invested in the process. But with GCC, they can easily scale up or down at a lower cost and in less time.

5. Global Market Expansion–

With the GCCs being situated in different countries, the companies can use this to their advantage to understand the workings of different markets and plan for future expansions.

6. Company culture-

With GCCs, you do not have to worry about your company culture being lost in the process. You can integrate your values and thinking, as the team works wholeheartedly for the parent company, ensuring their success.

7. Hassle-free maintenance-

GCCs prove to be a very optimal choice for companies as they do not need to worry about staying on top of every task that is allotted to them. These teams manage their tasks well, as this is their main service and they do not want the user experience to be tainted.

8. Guaranteed Security-

GCC ensures the safety of the parent company’s data by imposing several measures. For example, providing a company laptop, company mobile phones, pre-installed software helping in backup and protection, data sharing restrictions, having the employees sign contracts and NDAs, etc. This ensures that there is no breach in security and helps in keeping the data confidential.

With the ever-evolving landscape, companies have to invest a lot in training the staff in different departments. GCCs ensure that there is employee retention, which takes a huge load off the companies. Since IT is a very niche field, it requires more time and training. Companies might not be willing to invest these precious resources, especially when there is a looming risk of employees quitting. Businesses are constantly under pressure to innovate and evolve, and with these expansions come growing complex IT needs. GCCs are the ideal solution that bridges the gap effectively while ensuring that the quality and experience are not compromised.

Read Also: Top IT Outsourcing Companies in the World

Future of GCCs in India

By the year 2030, GCCs in India are headed for a bright future and the revenue generation from these companies is targeted at $121 billion. These units are a goldmine when it comes to job creation. So far, having created 6 lac new jobs between 2018-19 and 2023-24, IT aspirants can explore the possibility of working for them. GCCs in India currently serve many global conglomerates like Rakuten Pay, J.P Morgan Chase, Lowe’s, Wells Fargo, and many more. Companies outside India are actively realizing that India is not just a good offshore development center, but is also a very good option for offshore insourcing.

Conclusion

Hiring a GCC can offer a compelling range of benefits that can act as huge profitability cards for companies. Global Capability Centers are completely changing the rules. More than a growth spike, the influx of new GCC setups has a dynamic ripple effect that boosts economic engines. In industries like software, AI, cloud computing, data analytics, and cybersecurity, it goes beyond cost reduction to encompass full-fledged innovation. When it comes to IT solutions, India has been leading the pack for several years now. It indicates that GCC will be the new mode of hiring, providing the ultimate solution for all your IT needs.

At GraffersID, we can help you set up your Global Capability Center in India with talented professionals ready to assist you in all your web and software development needs. Contact us to learn more about our services and get all your IT outsourcing needs met at an effective cost!