Global Capability Center (GCC) is the new way to run Operations

Hello Hive Fam

Good day to you all, and I hope you're having a good time wherever you are.

We are in the 21st century, and technology is evolving, but at the same time, companies are also changing the way they have been working. Earlier, there was a trend that big companies were preferring to outsource their business to another partner who was able to perform from a different location, and this was a cost-effective solution for most of the organisations. Now this trend has been changing over the last few years, and in 2026 things have really gone up, and a lot of companies have set up their global capability centres in different cities in India.

AI generated

Basically, this global capability centre is a way through which these companies are setting up their operations on their own, and you can also call it a captive unit where they are not outsourcing anything; rather, they are setting up their own teams to manage their back-end operations. A lot of companies that have a basic presence in countries like the US, UK, or many others are going through this model because when they deploy their manpower in India, it helps them to save a lot of money on regular business operations.

AI generated

I asked AI to explain the core functionalities of these global capability centres, what are the functions are managed through this model, and what I got as a response was really interesting. the core functions are managed by companies in this model are basically related to the information Technology data and tech including finance and procurement and operations along with HR and also research and development that includes product engineering etc. these are the core functions which are managed through these global capability centres and since the companies are hiring the employees directly rather than outsourcing anything So they can save a good amount of money and better controls.

Ultimately, these companies are trying to save money on overall operations because they need to pay more to the BPO industry when they are outsourcing, but when they are going in, then this cost is significantly lower and a bigger chunk of money is spent on the setup, which is one-time and runs for a long time. This is an exciting concept, and while exploring LinkedIn, I get to see a lot of articles about it where many companies are setting up their business centres in India.

This is creating a lot of employment for people; however, this is also affecting the employment for the people working in the BPO industry because they are losing business, which is turning out to be an in-house setup for many organisations. Since this number is growing nicely, let's see how this continues to be in the next few years and how the BPO industry will survive with this change, or will they also adopt this change in business model. Thank you!

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