“Where’s the Money?” The GCC question no one is asking.

“Where’s the Money?” The GCC question no one is asking.

In the manufacturing industry, some of the OEM parents have realized that GCCs are not the best route to value creation by overtime moving away from a fully owned Captive model.
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Present times: New GCC setup is back in vogue. Everybody pays a visit to India, scouting for office spaces and announces bold ambitions to turn India into their nerve center of AI and innovation hub and what not ! Meanwhile, a NASSCOM research predicts lofty head count additions until 2030. Everybody claps, clicks, cuts the ribbon of a shiny new office at that fancy IT district.

5 years hence: Somewhere in the Boardroom of a North American / European MNC, the big boss asks, “Where are we?” Translation: Where’s the money?

Innovation must equal profit. A GCC not meeting the sacrosanct Captive Critical Mass (CCM) – the internal billing from cumulative billing that negates its year-to-date expenditure suddenly starts to look like a problem child.

A GCC that doesn’t pay for itself is a burden. Like a piece of sugary and sticky candy stuck between the teeth – it’s annoying and needs to go.

If the lesson from early entrant GCCs from the manufacturing sector is anything to go by, there is a lot to learn for the new kids on the block. History will repeat for those who refuse to learn from it.

Image source: Nasscom Zinnov HFS Research Research NXT

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