Prepare for the future of tech

Perspectives

Edition #37

Global capability centers: Fostering future innovation hubs

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Executive summary

More enterprises are launching global capability centers (GCCs) offshore, especially in India, not just to cut costs, but to access world-class technology talent and new strategic capabilities. The depth of the local industry means a host of frameworks and service providers have emerged to help organizations on the journey.

While getting a GCC up and running can be relatively straightforward, ensuring it thrives and creates value for the long term is a more complex undertaking, especially with the talent and technology landscape undergoing major shifts. In this edition of Perspectives, Thoughtworks experts who have been embedded in successful GCCs from the early stages — along with client contributor Mike Breeze from REA Group — share insights on ensuring offshore operations integrate into, and innovate on behalf of, the business as a whole.

Key takeaways

Be clear on the purpose of the GCC from the beginning. Even if a GCC is limited to less ambitious projects starting out, Thoughtworks experts recommend structuring it as a leadership or innovation hub early on if the vision is to have it contribute at a strategic level. Enterprises who plan and hire only for present needs may soon find themselves struggling to push talent and processes up the value chain.

Don’t outsource; co-create. In setting up a GCC, many companies turn to outsourcing agencies to find and onboard talent in what is often a new and relatively unknown market. However, as these partners are sometimes incentivized based on the number of people they successfully place, there's a risk they may prioritize volume over skills or cultural fit. This creates friction that can cause problems later. Such issues can be avoided by choosing partners carefully based on a shared vision and understanding, and the parent company remaining actively involved in the hiring and onboarding process.

Work proactively to address attrition. India’s tech talent market is highly competitive and a well-thought-out strategy is needed to structure and develop effective teams for the long term. Even before candidates are onboarded, consider proactive outreach to reduce dropouts or ‘no-shows.’ After they’re hired, clear development pathways are key to ensuring the GCC prepares the best local talent to become potential leaders at the global level.

Build and maintain bridges between the GCC and global HQ. GCCs are most effective, and impactful, when functioning seamlessly as an integral part of the broader global team. Along with additional capacity, GCCs can provide diversity and new perspectives. That means they should not only be encouraged to bring ideas to the table, but also to act on them. Formal leadership structures and dedicated budgets should be put in place to establish and strengthen a shared culture between locations, by for example introducing cross-regional champions or secondment opportunities.

Prepare GCCs for an AI-first future. AI is broadly positive for the GCC model, given its potential to overcome some of the barriers associated with location and access to information. GCCs are also expected to gain prominence within the enterprise as more companies recognize India as an important market and springboard for the Asia-Pacific region, as well as a talent opportunity. Imparting a sense of ownership and encouraging adaptability will ensure that whatever disruptions emerge, the GCC can evolve to play a leading role in the future of the business.