Yes—if you are not chasing this as the next big trend and your approach it as a strategic capability, not a shortcut to scale.
Make sure you are not Booking a Destination Wedding Before You’re Even Engaged
Why This Matters
Global Capability Centers (GCCs) are no longer the exclusive playbook of Fortune 500 enterprises. Mid-sized companies, driven by growth targets, talent scarcity at home, the need for cost-effective digital acceleration and AI becoming more mainstream are increasingly evaluating offshore GCCs as part of their strategic roadmap. However, building a successful GCC—especially in a market like India—requires more than replicating what large enterprises do.
Avoiding Buyer’s Remorse with GCC
A growing number of consulting and IT services firms are now pitching “GCC-as-a-Service” — not because it’s the most strategic fit for your company, but because it’s the next big thing they can sell. There’s a noticeable push to treat offshoring AI talent like a TikTok challenge: jump in fast, make it look cool, and worry about the consequences later.
You’ll hear things like:
- “Everyone’s building one in Bangalore right now”
- “You don’t want to fall behind on AI delivery velocity”
- “It’s plug-and-play — we’ll get you to 100 FTEs in 90 days”
But here’s the truth: this isn’t a dance trend, it’s a long-term operating model and requires a ton of work upfront and a continuous feeding and care. And if you get swept up in the FOMO without aligning it to your actual business needs, you could be looking at a very expensive case of buyer’s remorse — complete with half-baked strategy, unclear ownership, and underutilized talent halfway around the world.
Establishing a GCC demands clarity, capability, and commitment.
Key Drivers for Mid-Sized Firms Considering GCCs
- Access to Skilled Talent in software development, analytics, and increasingly, AI/ML
- Faster Hiring Velocity compared to constrained local markets
- Cost Efficiency through labor arbitrage and optimized overheads
- Time Zone Advantage enabling round-the-clock operations
- Strategic Control over IP, delivery quality, and process maturity
However, beneath these benefits lie execution risks that can disproportionately impact mid-sized companies if not addressed early.
What’s Changing: The AI Factor
AI is now a major driver behind new GCC mandates—but it introduces a new layer of complexity:
- AI Talent Is Scarce and Expensive: India has strong technical talent, but experienced AI/ML engineers are concentrated in top-tier firms or startups. Competing for this talent without a known brand or compelling mission will be difficult.
- You Need Time to Build AI Maturity: A GCC won’t accelerate AI transformation overnight. We would argue that building a GCC might distract you from building your AI capability in some fashion to. Upskilling your talent, changing how work gets done in your organization to be more AI centric, Building the right guard rails to ensure that AI is assisting and not going rogue, data governance, and compliance require deep cross-functional alignment—and a clear long-term roadmap.
- Overselling the AI Vision Is a Risk: Many mid-sized firms launch with aggressive AI ambitions but lack the internal maturity or data infrastructure to execute. The result: unmet expectations, talent attrition, and disillusionment.
Five Strategic Challenges Mid-Sized Companies Must Address
- Limited Brand Equity in India
Top talent in India is brand conscious. If your company isn’t known, expect to invest in employer branding, local PR, and value proposition messaging to compete with 100 other firms which are more known entities and are either establishing GCC or are clients of global IT delivery firms which have their presence and branding established for years. - AI Talent Requires More Than a Job Post
You’ll need compelling work, strong mentorship, and clear career growth to attract credible AI talent. A poorly defined AI roadmap or generic job descriptions will struggle to attract or retain quality hires. - Time-to-Value Is Often Underestimated
GCCs take 12–24 months to stabilize. Building leadership, aligning with HQ, and developing delivery maturity takes time—especially when operating in new regulatory or cultural environments. - Governance Is a Must-Have, Not a Nice-to-Have
Without proactive oversight, a GCC can quickly drift off course—especially if led by junior teams without direct ties to HQ strategy. Build governance in from the start. - You May Be Underleveraging Your Existing IT Vendors
Many mid-sized companies already work with global IT service providers. These vendors may offer transitional build-operate-transfer (BOT) models, captive enablement services, or AI accelerators. Revisiting vendor strategy could yield faster, lower-risk paths to scale.
What Mid-Sized Companies Should Do Differently
✅ Reframe the GCC as a Strategic Investment
Position the GCC as a long-term asset, not a cost-saving workaround. Define its mission clearly—support, engineering, R&D, or AI—and align org structure and KPIs accordingly. This is easier said than done. Cost Savings is still a play for leveraging resources at a location like India, but the expectation and timeline of this must be realistic. You might want to explore options with your existing IT partners as choice
✅ Start Small, But Plan with Structure
Pilot with a lean team, but implement reporting, talent frameworks, and governance protocols from Day 1.
✅ Engage Leadership Early and Often
Short-term rotations from HQ can fast-track alignment and build credibility. Without consistent leadership touchpoints, culture gaps and operational misfires grow quickly.
✅ Build an AI Capability Roadmap
Don’t start with AI just because it’s trending. Define your use cases, data maturity, and business outcomes—then layer in talent and tools.
✅ Optimize the Vendor Portfolio
Reassess your IT service partners. Can they help seed your GCC with talent or delivery muscle? Could a BOT model be a lower-risk entry point? Could they provide the AI accelerators you lack in-house?
✅ Invest in Local Branding and Talent Development
Host tech meetups, partner with universities, and build visibility in the Indian talent ecosystem. Internal capability will only scale when external perception supports it.
✅ Choose Your Location Thoughtfully
Each city—Bangalore, Hyderabad, Pune, NCR—offers different pros and cons. Align your choice with your functional goals, talent needs, and budget tolerance.
Executive Summary: GCCs for Mid-Sized Enterprises
- A GCC can create significant value for mid-sized firms—but only with strategic clarity, realistic AI goals, and disciplined execution
- Brand presence, AI talent, and vendor support are not guaranteed plan accordingly
- Governance, leadership integration, and structured scale-up are key to long-term success
- Mid-sized companies don’t need to mimic large enterprises—they need to design smarter, not bigger
