Do Global Capability Centers have an Image Problem?
Aniisu K Verghese Ph.D.
I help organisations, leaders and teams to communicate with clarity, connect employees to the purpose, enhance reputations, and embrace change | Author | Speaker | Global Digital Workplace Expert | Australia based
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Are global capability centers (GCCs) running from the core issue of their image?
In a world where "Made in America" is making a comeback, driven by nearshoring trends and reshoring efforts, GCCs, often known for their cost-effective operations are quietly navigating a crisis of perception. Is it time to face the truth.
Do GCCs need more than just a name change to stay relevant in the shifting global economy?
Critical yet hidden
GCCs have no separate balance sheets and are part of multinationals who set up operations globally to tap into the talent pool and take advantage of the supply of STEM graduates who are needed to keep the economy growing. India, known as the GCC Capital of the World, has over 1.9 million such graduates entering the workforce annually and the industry is estimated to generate revenues of USD 121 billion and export USD 102 billion.
However, according to Swaminathan Aiyar, a leading economist who pens a regular column in India’s well-known publication, the Times of India (Jan 5, 2025), ‘GCCs constitute a major Indian sector, hidden from public view but critical to the economy’. He also states that the industry caters to the upper crust of Indian society who do the hi-tech work in these multinationals, even though no country can compare with the scale and innovation its GCCs offer. Also, the salaries of GCC employees are paid as foreign exchange which matters to the country. Many multinationals shy away from talking about their GCCs because of concerns of backlash in their own countries with people fearing job cuts and loss of knowledge capital.
Nearshoring making a comeback
In the U.S., the manufacturing sector is struggling with a talent crisis. According to the National Association of Manufacturers, 60% of employers cite attracting and retaining skilled workers as their top concern. KPMG reports that 73% of U.S.-based executives are bringing supply chains back home, reducing reliance on China due to geopolitical and economic uncertainties. The pivot to regional models and nearshoring is all about reducing risks and securing supply chains, but, there’s a catch.
The workforce they are banking on is different from what it used to be. Younger workers prioritize remote work, flexible hours, and better work-life balance over traditional 12-hour shifts. Retirees are being called back, and apprenticeship programs are being ramped up to bridge skills gaps. Yet, the talent pool often lacks the quality and commitment employers seek. The result? Companies face a talent pipeline that is either unready or unwilling.
Perceptions that need attention
Meanwhile, GCCs whether branded as "innovation hubs" or "global business services centers" are no strangers to perception challenges. Historically seen as cost-cutting sweatshops in offshore locations, they are now facing new competition from reshoring initiatives. Their repositioning efforts, swapping titles to sound more innovative or sophisticated, skirt the deeper issue: a lack of trust in their value beyond labor arbitrage.
Communicating value
The question looms large. Can GCCs evolve their brand beyond being an outsourcing solution? Or are they doomed to remain in the shadow of sweatshop stereotypes, even as nearshoring shifts the balance of power?
Here’s where the debate gets interesting. GCCs have the infrastructure, scale, and access to skilled talent that many nearshoring efforts lack. They can offer innovation at competitive costs and create jobs for future-ready global workers. But to shed their image problem, they must communicate their true value of skills, innovation, and global expertise instead of running from their past.
So, how do GCCs change the conversation about their identity? Should they embrace transparency, lean into their strengths, and reclaim their reputation as essential players in the global economy? Or will the nearshoring boom leave them behind as they focus on rebranding without addressing the deeper challenges?
What’s your take? Can GCCs rewrite their narrative to compete in a nearshoring-driven world, or will they remain the convenient scapegoat of globalization?
#sharedservices #image #GCCimage #perception #innovation #leadership #globalcapabilitycenter #engagement #experience #leadership #captives #BusinessServices #GBS #nearshoring #outsourcing #offshoring #rightshoring #reshoring
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Who am I?
I am Aniisu, an award-winning internal communications and change leader helping individuals and organizations discover and develop their 'sweet-spot' through effective communications. As a Linkedin Top Voice for Internal Communications & Personal Branding based in Sydney, Australia, I offer insights, perspectives and solutions at the intersection of these two evolving domains. I believe that organizations are an amalgamation of employees as 'personal brands' and when we include, involve and inspire staff as partners of change, together we can amplify our presence and advocacy.
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2dGreat post, Aniisu K Verghese Ph.D.! Having a poor image is Hobson's choice for any organization, as it leaves no real alternative but to improve or risk losing credibility and opportunities. We live amidst a very disruptive world -where technology and finance are level playing grounds. It is the quality of the human capital that differentiates the best from the rest. If earlier when to where opportunities were, today opportunities go where the talent is!! However, GCCS must focus on building a strong employer brand by investing in employee engagement and development programs. By doing so, GCCs can attract and retain top talent and position themselves as essential players in the global economy.