National Frameworks: Shaping the Future of GCCs

The emerging global business landscape has compelled governments worldwide to reassess their strategies for harnessing talent and innovation. In this context, the Global Capability Center (GCC) ecosystem has undergone exponential growth.

While GCCs previously served as cost-efficient support and operational centers for multinational organizations, they have now evolved into centers of excellence and innovation. The national policy frameworks of different countries are playing a pivotal role in shaping this GCC growth trajectory.

National frameworks for GCCs reflect a deeper alignment between national ambitions and global enterprise needs. They create a fertile ground for digital transformation, skill development, and economic growth.

What Are National Frameworks? 

These refer to a set of government-led policies, regulations, and initiatives that seek to provide institutional support for Global Capability Centers. Governments design national frameworks for GCC to drive growth, innovation, and sustainability for these centers in the country.

These frameworks also align with the government’s economic priorities, such as job creation, upskilling, and increased digital literacy, as well as the strategic needs of GCCs, including the management of key business functions like technology, data analytics, operations, and research and development (R&D).

Key elements of GCC policy for growth and innovation often include: 

• Investment Incentives
  To incentivize GCCs, governments typically offer tax holidays and subsidies for capital expenditures or operational costs. They even extend grants to promote R&D and innovation.
  
  For instance, some governments may offer a 100% income tax exemption on export profits for GCCs operating in Special Economic Zones (SEZs).

• Talent Development
  GCC regulation also focuses on upskilling the available talent pool and providing vocational training programs. National frameworks also seek to foster partnership between the industry and academia to ensure that businesses have access to a steady supply of skilled professionals engaged in emerging technologies.

• Infrastructure Support
  National frameworks seek to develop world-class physical and digital infrastructure to support global organizations and their operations. These may include investments in tech parks and providing digital connectivity, such as 5G.

• Regulatory Ease and Compliance
  To attract global businesses, most governments focus on factors related to ease of doing business. These include providing streamlined business registration processes, simplified labor laws, single-window clearance systems, and clear guidelines for data protection and intellectual property rights (IPR).

• Geographical Diversification
  Recent trends, such as the policies proposed in India’s Union Budget 2025, indicate that the government now encourages GCC growth in Tier-II cities. This aims to decentralize job creation and enable these centers to tap into a broader talent pool.

Policy Impact on GCCs 

National frameworks have a direct influence on the way Global Capability Centers operate. They shape a GCC’s viability, growth, and strategic value. For instance, tax incentives enhance GCC’s cost savings and increase the financial attractiveness of a particular region. The increased return on investment (ROI) may propel multinational organizations to establish or expand their GCC footprint in the region.

Moreover, the government’s investment in upskilling the talent pool builds partnerships between the industry and academia. This ensures that academia develops curricula in a way that produces a robust and future-ready workforce, addressing one of the primary drivers for establishing Global Capability Centers.

Infrastructure support in the national framework for GCC is an essential backbone for their operations, ensuring higher productivity. On the other hand, insufficient physical or digital infrastructure can deter investment from multinational organizations in a country. Additionally, regulatory ease-of-doing business and simplified compliance reduce bureaucratic red tape and legal risks, driving a more predictable and business-friendly environment.

Industry-Government Collaboration 

The government creates an environment that supports innovation, talent development, and regulatory ease by aligning policy support with the industry’s needs. Government initiatives for infrastructure development, skilling of the talent pool, and ensuing regulatory ease help GCCs scale across sectors.

For industries, this partnership translates into the development of a conducive business environment and access to a skilled, vast talent pool. A regular partnership between the industry and policymakers allows both to address operational challenges and maintain the country’s competitiveness as a preferred location for establishing Global Capability Centers.

Future Trends

The national framework for GCC aims to drive the dynamic evolution of the global business environment. The following trends will drive the GCC policy in the upcoming years:

• Expansion into Tier-I and Tier-II Cities
  GCC frameworks are now increasingly incentivizing the establishment of these centers in emerging cities beyond traditional metros. This will enable GCCs to reduce their operational costs and access an untapped talent pool.

• Focus on Deep Technology and Innovation
  GCCs no longer function as cost-cutting back-end offices – they have now evolved into hubs for fostering innovation. Future GCC policies will emphasize R&D, data analytics, blockchain, and cybersecurity, enabling the development of intellectual property.

• Upskilling and Reskilling
  As advanced technologies continue to evolve, the nature of skill demand is expected to undergo significant changes. The frameworks that governments now shape will likely strengthen partnerships between industry and academia. This will support continuous upskilling and reskilling programs for the workforce, building a robust talent pipeline.

Ready to navigate the evolving GCC landscape by leveraging evolving national frameworks? Our expert teams help organizations build, operate, and optimize their GCCs. Contact ANSR today to unlock your GCC’s full potential.