Setting Up a New Global Capability Center: Key Decisions

As more businesses from the US and UK establish Global Capability Centers (GCCs) in India, selecting the right partner becomes a critical success factor. Many companies undertake an extensive partner evaluation process, often involving one or more of the Big 4 firms, specialized GCC consulting firms and/or large existing outsourcing partners in Technology and Operations. This process typically includes responding to detailed Requests for Proposals (RFPs).

RFPs, often managed by in-house procurement teams—sometimes with support from specialist consultants—tend to focus on:

☑️Property Solutions (both interim and long-term facilities)

☑️Talent Acquisition Solutions (hiring strategies and execution)

☑️Transition Solutions (ensuring a smooth path to service stabilization)

However, some of the most critical decision points are frequently overlooked. These include:

☑️Structuring and Incorporation: Choosing the optimal legal entity type and operational framework for the GCC.

☑️Ownership Models: Deciding between a Do-It-Yourself, a Build-Operate-Transfer (BOT) model, or other hybrid structures.

☑️Transfer Solutions: Addressing the complexities of asset and personnel transfers in cases of BOT.

These often-overlooked decisions can have a significant impact on the costs, complexities and long-term scalability of the GCC during setup, steady-state operations, and eventual transfer.

Let’s explore these critical areas in more detail.