Build World-Class
Global Capability Centers

A Global Capability Center (also called Captive Center or In-house Shared Service Center) is a wholly-owned offshore or nearshore operation delivering business processes, technology services, or specialized capabilities to the parent organization. Unlike outsourcing to third parties, GCCs provide greater control, customization, and alignment with enterprise strategy. Organizations establish GCCs to achieve 40-60% cost savings, access global talent pools, build strategic capabilities, improve quality and control, drive innovation, and create scalable platforms for growth.

Our approach starts with comprehensive function assessment evaluating Finance, IT, HR, Procurement, Customer Service, Analytics, and Engineering for GCC migration suitability. We analyze factors including process standardization, transaction volumes, skill requirements, regulatory constraints, and strategic importance. For location selection, we evaluate cost arbitrage, talent availability, language proficiency, time zone compatibility, regulatory environment, infrastructure quality, and political stability. The result is data-driven recommendations balancing cost, risk, talent, and strategic fit.

GCC establishment typically follows 6-12 month timeline across five phases: Strategy & Planning (2-3 months): Business case, location selection, operating model design. Infrastructure Setup (2-3 months): Legal entity, physical workspace, technology infrastructure, vendor contracts. Recruitment & Training (3-4 months): Talent acquisition, onboarding, process training, knowledge transfer. Process Migration (2-4 months): Phased transition with pilot, scale, and stabilization. Optimization (ongoing): Performance improvement, automation, scaling. Total timeline varies by scope complexity and readiness.

Operating model design addresses organizational structure (centralized global hub, regional centers, or distributed model), service delivery approach (captive vs. hybrid with selective outsourcing), governance framework (steering committees, decision rights, escalation paths), process ownership (retained vs. transferred responsibilities), performance management (SLAs, KPIs, scorecards), and talent model (employee mix, contractor strategy, vendor partnerships). We customize based on industry, maturity, scale ambitions, and strategic objectives—balancing standardization with flexibility.

Successful talent strategies combine competitive compensation benchmarked against local market leaders, strong employer brand positioning GCC as destination employer not offshore back-office, career development paths providing growth opportunities and skill building, work culture emphasizing autonomy, impact, and innovation, retention programs including variable pay, recognition, and advancement, leadership development identifying and grooming future GCC leaders, and location selection in cities with strong talent pools and quality of life. Early investment in employer branding and talent pipeline pays significant dividends.

Process migration follows structured methodology: Assessment phase (process documentation, complexity analysis, dependency mapping), Wave Planning (prioritize processes into logical migration waves balancing risk and value), Transition Planning (detailed playbooks with task lists, timelines, RACI), Knowledge Transfer (documentation, shadowing, reverse shadowing, certifications), Pilot Migration (test wave validating approach and identifying issues), Scaled Migration (accelerated waves leveraging lessons learned), and Stabilization (performance monitoring, issue resolution, optimization). Typical wave duration is 8-12 weeks with 3-6 month stabilization.

Governance frameworks include strategic governance (steering committee with senior sponsors making strategic decisions and resolving escalations), operational governance (working groups managing day-to-day operations and SLA performance), financial governance (budget management, cost allocation, chargebacks), compliance management (data privacy, labor laws, tax regulations, transfer pricing), risk management (operational, financial, reputational, regulatory risks), and audit mechanisms (internal audits, quality reviews, compliance checks). We customize frameworks based on industry regulations, geographic footprint, and parent organization requirements.

Change management addresses people side of transformation through stakeholder analysis (identifying affected groups and resistance points), communication strategy (regular updates, town halls, newsletters, FAQs), engagement activities (workshops, feedback sessions, champion networks), training programs (business users, GCC staff, leaders), resistance management (addressing concerns, demonstrating value, celebrating wins), and adoption tracking (measuring sentiment, utilization, performance). Early and continuous engagement of business stakeholders and retained staff is critical for success.

Cost savings vary by function and location but typical ranges are: Labor arbitrage 40-60% reduction in fully-loaded costs comparing source to destination markets, process efficiency 20-30% improvement through standardization, automation, and scale, technology optimization 15-25% savings through shared infrastructure and vendor consolidation, and quality improvement reducing rework, errors, and compliance penalties. Total GCC business case typically shows 3-year payback with 30-50% net savings after accounting for transition costs, infrastructure investments, and retained costs. Savings materialize progressively as processes migrate and operations stabilize.

Post-launch support includes performance optimization (analyzing KPIs, identifying improvement opportunities, implementing enhancements), automation roadmap (assessing RPA, AI, and workflow automation opportunities across processes), capability expansion (adding functions, services, or geographies based on value potential), talent development (training programs, leadership development, retention initiatives), technology upgrades (modernizing infrastructure, adopting new tools, improving integration), and governance evolution (refining operating model, updating policies, enhancing controls). We provide ongoing advisory helping GCCs evolve from cost centers to strategic capabilities driving innovation.

Common pitfalls include: Unclear strategy (scope creep, unfocused execution) avoided through rigorous business case and scope definition, poor location selection (talent shortages, infrastructure gaps) prevented by comprehensive location analysis, rushed migration (quality issues, disruption) mitigated through phased transition with pilot waves, weak governance (accountability gaps, decision delays) addressed via clear governance frameworks and decision rights, talent challenges (attrition, skills gaps) managed through employer branding and retention programs, and inadequate change management (resistance, low adoption) overcome through stakeholder engagement and communication. Our proven methodology and lessons learned from 15+ GCC setups help clients avoid these pitfalls.

Advisory engagements follow phased approach: Discovery (2-4 weeks): Current state assessment, opportunity sizing, approach alignment. Strategy & Design (8-12 weeks): Business case, location strategy, operating model design, transition planning. Implementation Support (6-12 months): Infrastructure setup, recruitment support, transition management, governance implementation. Ongoing Optimization (as needed): Performance improvement, scaling support, automation advisory. Investment varies by scope and duration with focused engagements starting around mid-six figures and comprehensive multi-year partnerships reaching low seven figures. ROI is typically 3-5x investment through cost savings and efficiency gains.