Why in News?
India has emerged as the world’s largest hub for Global Capability Centres (GCCs), moving from a low-end back-office destination to a strategic centre for innovation, R&D, data analytics, AI, and global decision-making.
Description:
About GCCs:
- Global Capability Centre (GCC): Offshore unit set up by a multinational company to deliver critical services to its global operations (not domestic markets)
- Captive Centre: A GCC fully owned and operated by the parent company
- Shared Services: Centralised delivery of finance, HR, IT, legal, and procurement services
- Value Chain Upgradation: Shift from routine tasks to high-value strategic functions
Key Features:
- Ownership: Captive (in-house) model, not third-party outsourcing
- Functions covered: IT services, Product engineering, R&D and innovation, Data analytics & AI, Cybersecurity, Finance, HR, legal operations
- Talent-intensive, not labour-intensive
GCC vs BPO:
| Parameter | Global Capability Centre (GCC) | Business Process Outsourcing (BPO) |
| Basic Model | In-house (captive) centre of an MNC | Third-party outsourcing model |
| Ownership | Fully owned by parent company | Independent service provider |
| Nature of Functions | Core, strategic, high-value | Non-core, routine, repetitive |
| Typical Activities | R&D, product development, AI/ML, chip design, cybersecurity | Call centres, data processing, payroll, customer support |
| Skill Requirement | Highly skilled professionals | Semi-skilled workforce |
| Wage Levels | High | Low |
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