Beyond Cost Savings: GCCs Drive Growth for Private Equity

In recent years, Private Equity (PE) firms have strategically focused their investments on high-growth sectors such as technology, healthcare, and financial services to drive substantial returns. To maximize long-term value and operational efficiency, these firms and their portfolio companies are increasingly leveraging Global Capability Centers (GCCs).

By integrating GCCs into their operating model, PE firms adopt a structured, value-driven approach—standardizing processes, optimizing operations, and enhancing the overall efficiency of their portfolio companies.

The PE Playbook: GCCs as Value Creation Engines

Leveraging the GCC strategy offers significant benefits to portfolio companies by reducing operational costs and simultaneously providing access to a highly skilled pool of talent from the PE firm’s shared services. 

• Cost Optimization
  GCCs serve as strategic levers for private equity firms aiming to maximize cost efficiencies across portfolio companies. By consolidating operations, leveraging automation and utilizing offshore talent, PE firms can reduce operational costs, improving EBITDA margins.
• Scalability
  Through GCCs, Private Equity firms and their portfolio companies can accelerate growth and scale with agility. Access to a diverse, globally distributed talent pool enables seamless expansion, operational resilience, and strategic market entry.
• Innovation Hub
  Global Capability Centers have evolved beyond cost-arbitrage and serve as innovation engines for portfolio companies. By integrating advanced capabilities, they drive digital transformation through AI, analytics, and automation.
• Risk Diversification
  PE firms leverage GCCs to de-risk operations and navigate geopolitical uncertainties by strategically distributing business functions across multiple locations. This approach minimizes reliance on any single market or economy while ensuring access to a diverse, high-caliber talent pool.

GCCs Across the Private Equity Lifecycle

PE firms engage with GCCs across their lifecycle—from initial investment to exit—leveraging strategies such as operational optimization, digital transformation, and strategic partnerships to maximize value creation.

1. Acquisition Phase

At the initial stage, PE firms must first assess whether adopting a GCC strategy will unlock true value, and if so, how.

Due Diligence Considerations
Key considerations include:

• Checking if the target company has an existing center and its maturity level
• Analyzing current costs and identifying opportunities for consolidation, automation, and outsourcing.
• Assessing the availability of skilled talent within the target company’s GCC 
• Reviewing IT infrastructure, automation maturity, and digital capabilities 

Potential GCC Opportunities
If a target company does not have an existing GCC or has an underutilized one, PE firms explore ways to integrate or expand GCC capabilities for value creation. Setting up a new offshore or nearshore GCC in key locations (e.g., India, Eastern Europe, Latin America) to drive cost savings and efficiency.

2. Holding Period

The holding period of a PE firm for a portfolio company with an operational center varies based on several factors. The following factors shape the value creation plan and exit strategy: 

Operational Excellence
PE firms often focus on driving operational efficiencies within GCCs to improve profitability. This can involve streamlining processes, optimizing resource allocation, and implementing best practices.

Talent Acquisition
To succeed, a GCC needs to attract and retain skilled talent. PE firms invest in talent development programs, enhance compensation and create a positive workspace to reduce drop-off rates.

Digital Transformation
Investing in digital transformation initiatives, such as cloud computing, artificial intelligence and automation can significantly enhance GCC capabilities and drive innovation. PE firms make this accessible. 

3. Exit Phase

As PE firms prepare to exit a portfolio company, a well-integrated GCC can significantly enhance the company’s attractiveness by showcasing cost efficiency, digital maturity and risk diversification through the following metrics: 

EBITDA Expansion
A well-structured GCC enhances EBITDA by driving cost efficiencies and optimizing operations, directly improving profitability.

Scalability Advantage
Investors prioritize businesses that can scale cost-effectively. GCCs enable rapid expansion in operations and R&D without requiring substantial infrastructure investments.

Innovation-Driven Value
PE firms that position GCCs as digital innovation hubs attract higher valuations. Advanced technologies like RPA, ML, and AI-powered chatbots demonstrate a company’s digital maturity and future readiness.

The GCC Impact: Driving PE Returns

GCC’s cross-charging model not only generates additional income but also fosters collaboration and knowledge sharing across the portfolio, driving innovation and creating a competitive advantage. 

• EBITDA Enhancement
  The lower cost structures of these capability centers compared to onshore operations translate directly into improved margins. PE firms can further amplify this by streamlining processes, automating repetitive tasks, and optimizing resource allocation.
• Accelerated Growth
  Private Equity GCCs can act as springboards for expansion into new geographic markets, providing access to previously untapped customer bases.
• Talent Advantage
  GCCs often provide access to a highly skilled and cost-effective talent pool. The GCC talent strategy is a crucial driver of value.

Future Outlook: GCCs in PE Strategy

With evolving market dynamics, digital acceleration, and the need for scalable growth models, GCCs will become central to PE strategy—not just as cost centers but as value creation hubs driving operational efficiency, innovation, and risk mitigation.

• Cutting-Edge Tech Innovation
  AI-driven automation, predictive analytics and intelligent decision-making are transforming GCCs into digital powerhouses that accelerate business efficiency and innovation.
• Long-Term Value Proposition
  GCCs enhance EBITDA, optimizing operational costs, automating processes and ensuring sustainable margin expansion for PE-backed firms. With agile and technology-driven GCCs, portfolio companies can scale globally without proportional cost increases, ensuring long-term growth sustainability.

Discover how ANSR can help you leverage Global Capability Centers to drive EBITDA growth, scalability and digital transformation in your portfolio companies. Schedule a consultation with our experts today and explore tailored strategies for maximizing PE returns.