India a lucrative location for GCC establishment: Report

A study conducted by Feedback Insights in association with CaptiveAide found that India continues to be the prime location target for Global Capability Centers (GCCs).

According to the study titled ‘Back to the Future: What You Didn't Know About Setting Up a Successful GIC in India – Today’ 52% of GCCs surveyed prioritise access to a deep talent pool as a key decision to choose India as a destination, this diverse talent pool is not just about quantity; it's about quality.

However, respondents stated that organisations still face several challenges in fully leveraging these advantages. Key hurdles include cultural and communication differences, regulatory compliance complexities, infrastructure limitations, and talent retention issues.
 
Further, the findings revealed that companies of all sizes, from those with revenues under $500 million to those exceeding $5 billion, consistently rate access to talent as a top priority. Some of the key challenges cited by the respondents are communication (84%), compliance (55%), infrastructure (45%), administration and management (42%), cybersecurity and privacy (38%), and talent acquisition and retention (35%).
 
Some of the solutions to these challenges, as suggested by the respondents are:
 
- Implement robust compliance measures and engage proactively with local authorities
- Leverage local partnerships more effectively to navigate the business ecosystem
- Focus on data classification and privacy to ensure regulatory compliance
- Invest in developing strong local leadership with cultural fluency and industry expertise
- Improve talent mapping to align organisational capabilities with strategic objectives
 
Commenting on the study, Jawahar Bekay, Managing Partner at Captiveaide Advisory said, "While India's vast talent pool remains a primary draw, we've uncovered a complex interplay of factors that determine long-term success. GCCs are evolving beyond their traditional role as cost-saving measures to become strategic innovation hubs. However, this transformation hinges on effectively navigating cultural dynamics, regulatory complexities, and leadership challenges.”
 
He further added that organisations that can blend local insights with global strategies, invest in cultural intelligence, and build robust compliance frameworks are best positioned to unlock the full potential of their GCCs in India.