Contracting Models For Global Capability Centers In India

Companies that wish to establish GCCs in India should carefully consider the various contracting models used to engage a local or international service provider.

TAKEAWAYS

• Under a services agreement model, the GCC will be solely owned by the Company.
• A joint venture model combines the elements of the service agreement model with the added layer that the service provider will hold a minority equity interest in the GCC.
• A joint venture model combines the elements of the service agreement model with the added layer that the service provider will hold a minority equity interest in the GCC.

Global Capability Centers (GCCs) located in India continue to evolve from labor arbitrage and cost savings initiatives to innovation centers for digital transformation, supporting cloud, mobile, data security, data analytics, AI, automation and other emerging technologies. Companies looking to establish a GCC in India (Companies) often engage a local or international