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News » Small global capability centers in India shift to innovation-first model: Nasscom

Small global capability centers in India shift to innovation-first model: Nasscom

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NEW DELHI, INDIA — In a notable shift, smaller global capability centers (GCCs) in India are increasingly outsourcing non-core functions like human resources and administrative tasks to consulting firms. 

This strategic move allows these centers to concentrate on developing primary products for their parent organizations. Consulting firms are stepping up by providing shared platforms that help reduce operational costs, enabling GCCs to focus on their core business activities.

Srikanth Srinivasan, Vice President of the industry body National Association of Software and Services Companies (Nasscom), emphasized the importance of this support for new entrants in the Indian market. 

“Many of these companies which are coming into India are looking at these things because they do want that support, as they are new to the geography,” Srinivasan noted. “The rules are different, they don’t have people here locally and that’s a struggle. So that’s where these people [consultants] really help them to set it up.”

Key role of consulting firms in GCC setup

IT consulting and services firms like Infosys and Wipro have become crucial in facilitating the setup process for GCCs by offering local expertise and operational support. These firms assist with recruitment, compliance, payroll management, and other non-core operations. 

“Typically, when some of these companies start, they may have a small number of employees — maybe 50 or 150. They delegate tasks like salary processing or recruitment to consultants who help them set up shop,” Srinivasan explained.

This approach allows GCCs to maintain their focus on core business development while outsourcing secondary but essential functions. Over time, some of these outsourced functions may be reintegrated into the GCCs’ operations.

Decoupling operational processes from platforms

Aveek Mukherjee, co-founder and managing director of Bengaluru-based consulting firm Gloplax, described the emerging trend as decoupling operational “processes” from “platforms.” 

Gloplax helps small and mid-sized businesses establish GCCs in India by providing infrastructure such as legal entities, transport, and finance services while focusing on developing core technology.

Mukherjee highlighted how economies of scale benefit smaller GCCs: “For example, if I get 10 customers of 200 employees each, I manage a platform for 2,000. This way, smaller GCCs benefit from economies of scale — better deals on transport, facilities, and other overhead costs.”

From operations management to innovation leadership

Once operational processes are streamlined through outsourcing, GCCs can shift their focus to scaling talent and driving innovation for their parent companies. 

Sameer Dhanrajani, CEO of AI and analytics professionals marketplace 3AI, explained this transition: “At scale, the talent comes in where they kind of work for the parent organization — building HR work, marketing work, or outsourcing their tech work.”

As these centers mature, they not only support existing operations but also contribute by creating new product solutions and platforms for their parent organizations. This evolution underscores the growing significance of GCCs in global business strategies.

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