Why India is the Best Destination for Global Capability Centers
From Cost-Centric to Innovation-First Approach for Global Capability Center
Setting up a Global Capability Center(GIC) in India has become a strategic move for businesses amid the COVID-19 pandemic. The global economy faced significant disruptions, forcing organizations across industries to navigate revenue uncertainty, prioritize cash conservation, and enhance cost management. This shift has reinforced the value proposition of Global In-House Centers (GICs), also known as captives.
India is home to over 1,800 GICs across various sectors, employing nearly 1.2 million professionals. The agility displayed by these centers during the lockdown has enabled them to meet organizational goals and strengthen their role in the global ecosystem.
Key Changes in Global Capability Center Since the Lockdown
- The adoption of work-from-home (WFH) policies has allowed employees to operate virtually.
- Existing WFH policies have been revised to offer additional support.
- HR policies, particularly those related to healthcare benefits, have been updated.
- GICs have made concerted efforts to ensure employees have the necessary infrastructure to work efficiently.
- The business function most impacted in the initial lockdown phase was risk management and analytics, experiencing approximately a 40% impact.
Emerging Trends in Global Capability Center
- Minimal Workforce Disruption: Over 91% of the workforce was able to work remotely, ensuring business continuity.
- Minor Impact on Employee Compensation: About 97% of employees reported little to no impact on their benefits.
- Hiring on the Rise: Reports indicate that 98% of organizations plan to maintain or increase their workforce.
This resilience has positioned GICs as an emerging talent hub for delivering high-value services to clients.
Setting Up a Global Capability Center in India
Since the 1990s, when companies like Texas Instruments, GE, and Citigroup embraced the GIC model, India has remained a preferred destination for establishing new captives. Despite the global economic slowdown, GICs in India continue to expand, with companies maintaining a cautious yet strategic hiring approach.
One recent example is Canada-based Sun Life Financial, which plans to onboard over 1,800 employees through its GIC in India. The country’s skilled and experienced talent pool makes it an attractive outsourcing hub for global corporations.
How Can Your Organization Fast-Track Growth?
Over the years, GICs have evolved from being low-cost back-office processing centers to innovation hubs driven by talent and technology. However, setting up a GIC requires time and manpower to evaluate talent availability, infrastructure, regulatory environments, and tax incentives.
This is where Optimar comes in.
We offer trusted advisory and consulting services to businesses in BFSI, Fintech, Analytics, Advertising, and Healthcare. Our expertise helps companies identify quality talent, handpick resources, and choose the ideal infrastructure setup.
Our Engagement Models
1. Build-Operate-Transfer (BOT)
- We collaborate with organizations to establish infrastructure, manage operations, and transfer ownership when they are ready.
2. Build-Operate-Manage (BOM)
- Similar to the BOT model, but Optimar continues managing and executing operational aspects instead of transferring control.
Co-Creating the Path to Sustainable Growth
Businesses have multiple options when setting up a GIC or a virtual in-house captive. Our experts are at the forefront of industry change, helping companies expand globally, strengthen their capabilities, and prepare for the future.
Get in touch with Optimar Consulting to unlock the full potential of your business with our sector-specific expertise.
Optimar Consulting specializes in offshore remote teams, virtual captive centers, and industry-specific solutions across Mortgage & Financial Services, AEC Preconstruction, Manufacturing, Renewable Energy, Information Technology(IT), and Accounts & Finance. Our expertise helps businesses scale efficiently by leveraging global talent and strategic outsourcing. Visit our sister site, Optimar Precon, for specialized preconstruction and AEC industry solutions.