Today, over 70% of organisations operate Global Capability Centres (GCCs), strategically located to drive innovation, efficiency, and scalable growth. Originally focused on IT, finance, and HR, GCCs now support core business functions and accelerate digital transformation.
Research shows that GCC spending across the world would grow 10% annually, reaching $715 billion by 2027. Choosing the right location is a critical strategic decision, as it ensures access to skilled talent, robust infrastructure, and vibrant ecosystems that enable GCCs to scale, innovate, and support evolving business priorities.
This article explores the key considerations shaping global capability centre location strategy, along with essential selection criteria to help organisations make informed, impactful choices.
from cost centres to innovation hubs
GCCs have evolved from cost-focused back offices into strategic hubs driving enterprise-wide digital transformation. Once centred on labour arbitrage, they now function as Centres of Excellence that foster and create long-term value.
Leading GCCs leverage AI and advanced analytics combined with domain expertise to improve efficiency, boost customer engagement, and enhance digital capabilities, including automation, cybersecurity, and real-time insights. The location choice is crucial because factors like talent availability, infrastructure quality, regulatory environment, and innovation ecosystems directly influence a GCC’s ability to scale effectively, innovate continuously, and maintain a competitive edge.
Consider these essential GCC location selection criteria to guide informed decisions.
talent ecosystem and skills availability
The availability of skilled talent is the single most important driver of GCC success. Enterprises increasingly demand expertise in digital operations, AI, data science, cybersecurity, and customer experience management. Locations with robust talent pipelines that strong academic institutions and industry partnerships support deliver superior outcomes.
Enterprises should evaluate not only the current workforce but also whether the ecosystem can nurture next-generation skills in emerging technologies.
cost efficiency and long-term ROI
Cost efficiency remains relevant, but emphasis has shifted from cost arbitrage to capability arbitrage. Enterprises now prioritise value creation through innovation and productivity.
Research shows that organisations balancing cost with access to innovation talent can achieve significant operational savings while accelerating transformation outcomes. High-performing GCCs emerge where productivity gains, strong collaboration networks, and sustainable growth models complement cost advantages.
infrastructure and ecosystem maturity
A GCC thrives only when supported by mature business and technology ecosystems. Reliable digital infrastructure, utilities, transport, and modern workspaces are fundamental.
Equally critical is the surrounding innovation ecosystem. Access to startups, research institutions, professional service providers, and incubators enables collaboration, co-creation, and continuous innovation. Over 90% of top GCCs have established AI-led Centres of Excellence between 2024 and the first half of 2025, advancing R&D, automation, and AI development.
Sustainability credentials and adherence to Environmental, Social, and Governance (ESG) standards also enhance long-term location desirability.
geopolitical stability and risk diversification
Reducing exposure to geopolitical uncertainties is another key factor. Enterprises increasingly assess locations for political stability, security standards, data protection laws, and legal predictability.
To strengthen resilience, at least 20% of new GCC investments in the next two years could follow a “hub-plus-one” model, diversifying operations across multiple centres to minimise concentration risks and enhance business continuity.
employee experience and quality of life
Retaining top talent depends on more than competitive pay. Quality of life factors such as healthcare, housing, education, cultural vibrancy, and wellness infrastructure significantly influence retention.
Organisations are placing greater emphasis on flexible work models, modern amenities, and employee well-being programs. Treating employee experience with the same rigour as customer experience consistently boosts engagement and loyalty.
setup models and the global capability centre location strategy
Enterprises select GCC models based on control, risk, and scalability, shaping both operational setup and location decisions. The right design aligns with strategic goals.
- Greenfield model: Full ownership and control from day one, requiring locations with robust talent, infrastructure, and regulatory support.
- Build-Operate-Transfer (BOT): Providers manage initial operations before transferring ownership; they choose locations based on provider capabilities to ensure smooth transitions.
- Joint Venture (JV): Shared ownership with local partners; location depends on partner presence, market knowledge, and legal frameworks.
- Assisted model: Providers offer setup support while enterprises retain control; favours sites where early operational guidance is accessible.
- Hybrid or multi-location: Diversified footprint across geographies to balance talent, compliance, cost, and risk.
Providers play a critical role in guiding setup, scalability, and innovation.
how can Infosys BPM help enterprises build future-ready GCCs?
The location of a global capability centre can shape how effectively an enterprise competes in a dynamic, digital-first world. By aligning your global capability centre location strategy with future-focused criteria, you ensure that your GCC evolves into a catalyst for transformation and sustained growth. Infosys BPM brings proven expertise in designing, building, and managing GCCs that deliver measurable impact, helping organisations unlock value, innovate with speed, and future-proof their operations.
