Key Strategies to Establish a Successful Global Capability Center
Second in a three-part series.
Introduction
Setting up a Global Capability Center (GCC) is a strategic initiative that can unlock immense value for organizations. From accelerating innovation to streamlining global operations, a well-executed GCC can be a cornerstone of success. This article explores the key strategies for establishing a GCC that thrives.
Choosing the Right Location
The old adage in real estate—location, location, location—applies just as much to setting up a successful GCC. Yet, it is often overlooked in strategic planning. Location is one of the most critical factors in setting up a GCC. India remains a top choice, not just for its skilled workforce and cost advantages but also for its rapidly growing infrastructure and business-friendly policies. Additionally, emerging non-metro cities offer specialized talent pools, making them attractive alternatives to traditional hubs.
For example, Bangalore and Hyderabad are well-known technology hubs, offering access to top-tier talent and cutting-edge infrastructure. However, smaller cities like Pune, Vadodara, and Coimbatore are gaining traction due to their niche expertise in IoT and analytics. Selecting the best city involves balancing access to talent, operational costs, and logistical considerations.
Selecting the correct leader who can serve as a glue between the two centers
After selecting the location, the next critical decision is choosing the right leader to head the GCC. A successful GCC leader must not only have experience in senior leadership but also align with the company’s culture and long-term goals. Ideally, they should have prior experience setting up GCCs in India, possess deep industry knowledge, and understand the nuances of cross-border operations.
For both Trilliant and Xylem, I was an employee within the company, had an established relationship with senior management, and earned their trust to build and operate the center. This trust was a key motivator in driving success.
Attracting and Retaining Talent
The strength of a GCC lies in its people. Building high-performing teams requires thoughtful hiring, competitive compensation, and clear growth opportunities. Upskilling initiatives, particularly in AI, machine learning, and emerging technologies, ensure teams remain future-ready and aligned with global demands.
Investing in employee well-being is equally important. Companies that offer flexible work arrangements, robust health benefits, and continuous learning opportunities tend to attract and retain the best talent. Additionally, fostering a culture of innovation and collaboration encourages employees to contribute their best ideas. Skilled leadership ensures these elements are in place and helps foster an environment where employees thrive. I have hired over 200 developers, testers, support staff, and contractors using a variety of hiring techniques—some of which I will explore in a future article—to ensure the success of these centers.
Cultural Integration
Aligning the GCC’s culture with the parent organization is crucial to achieving seamless operations. This involves fostering collaboration, ensuring transparent communication, and respecting local cultural nuances. A well-integrated culture builds trust and enhances productivity. The ideal GCC leader should have executive-level experience in U.S. corporate environments and firsthand knowledge of working and living in India.
Companies investing in cross-cultural training programs often find bridging gaps between global teams easier. Pairing local employees with mentors from the parent organization can accelerate cultural integration while fostering professional growth. Strong leaders who understand both the local and global corporate cultures are essential to making this integration seamless.
Investing in Technology and Infrastructure
GCC’s success hinges on robust technology and infrastructure. Investing in scalable cloud solutions, secure systems, and cutting-edge tools ensures efficiency. Leveraging time zone advantages for follow-the-sun operations enables 24×7 project delivery, further enhancing value.
Organizations that adopt AI-powered project management tools and real-time communication platforms can streamline operations and reduce bottlenecks. Additionally, creating state-of-the-art facilities with modern amenities helps attract top talent and enhances overall productivity. Leadership that prioritizes these investments ensures the GCC remains competitive in a rapidly evolving landscape.
Conclusion
Establishing a GCC is both a challenge and an opportunity. By focusing on location, talent, culture, and technology and ensuring strong leadership to connect it all, organizations can build GCCs that drive meaningful outcomes and sustained growth.
I’d love to connect if you want to learn more about building high-impact GCCs or exchanging ideas on LinkedIn. Please check out my Professional Portfolio. It’s a work in progress, and your feedback is always welcome.
About the Author
Venki Ramachandran has extensive experience building and leading Global Capability Centers (GCCs) for startups and large enterprises. His leadership in engineering team development, business process optimization, and cultural integration has been instrumental in the success of multiple GCCs. With expertise in AWS cloud deployments, AI/ML solutions, and data-driven business strategies, he helps organizations create high-performing GCCs that drive measurable value.