Smaller GCCs outsource non-core work, double down on core products

The GCC sector will likely contribute 3.5 percent to India’s GDP and generate around estimated $121 billion in revenue by 2030. (Representative image)

Smaller global capability centres (GCCs) in India are increasingly outsourcing non-core functions such as human resources and administrative tasks to consulting firms, allowing them to focus on building primary products for their parent organisations.

Many consulting firms are increasingly providing shared platforms for smaller GCCs to help them reduce costs.

“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,” Srikanth Srinivasan, vice president of industry body Nasscom said. “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.”

It is a huge opportunity. Information technology (IT) companies such as Infosys and Wipro are helping GCCs recruit talent and setting up the centres for clients.

Also read: Infosys, Wipro setting up GCCs for clients, helping them recruit talent

A GCC is a dedicated offshore unit set up by a company in a foreign country to in-source IT and related business functions.

The GCC sector is on an exponential growth path, with the Economic Survey 2024 projecting these centres to contribute approximately 3.5 percent to the GDP and generate an estimated $121 billion in revenue by 2030.

Consulting firms have started to play a crucial role in easing the entry of GCCs by providing local expertise and operational support.

Srinivasan said there’s no empirical evidence for this phenomenon but smaller GCCs often rely on consulting firms to handle non-core operations such as recruitment, compliance and payroll management.

The reason is simple: GCCs are set up for core business development in the first place and the rest is secondary but a crucial part.

“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. Over time, some of these functions may be transferred back to the GCC,” Srinivasan said.

This, too, can take various forms — from consultants offering end-to-end setup, including government clearances and infrastructure, to operating under a “build-operate-transfer” model where consulting firms manage the initial setup before handing over operations to the GCC.

Gloplax’s co-founder and managing director Aveek Mukherjee called the emerging trend as operational “processes” from “platforms”.

The Bengaluru-based consulting firm helps small and mid-size businesses set up GCCs in India.

The platform includes infrastructure such as legal entities, transport, human resource, finance and cafeteria services, while the process involves developing core technology leveraging India’s vast and superior talent pool, Mukherjee said.

“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,” he said.

The model also appeals to regulators in markets like the US, where decoupling platforms and processes enhances transparency and dependability, Mukherjee said.

Also read: IT companies set up dedicated GCC Strategic Business Units as demand booms

Once these are established, GCCs shift focus to scaling talent and driving innovation for their parent organisations.

Describing the transition, 3AI chief executive officer Sameer Dhanrajani said, “At scale, the talent comes in where they kind of work for the parent organisation — building HR work, marketing work, or outsourcing their tech work.”

“Gradually, they take shape by even creating new product solutions and platforms for the parent organisation.”

3AI is a marketplace for AI and analytics professionals with more than 410 GCC leaders onboard.