Setting up an India Development Center (IDC) or a Global Capability Center (GCC) has been a preferred and well proven avenue for MNCs across the world looking to expand their business in a cost-effective way. Further, the burgeoning Indian economy and its affluent middle-class makes India a very attractive market. Most MNCs do have a specific “India Strategy” and use the GCC to develop products very specific to India market. Lately, geo-political considerations are also playing a major role in setting-up or expanding the GCC in India. While the advantages and rewards come in the form of vast talent pool, the cost-structure which is a fraction of the cost of developed countries and a pool of engineers that are flexible and learning all the time, there are enough challenges that needs to be overcome (and some key decisions thereof) for a GCC to be successful. This paper focusses more on some of the key challenges companies face and need to be aware, particularly while setting up. Key decisions and actionable best practices for this critical are discussed.
The top critical decisions and challenges include:
- Location within India
- Choice of the Site Leader
- Regulatory approvals
- Hiring the core team
- Hiring enabling team
- Infrastructure
- Scaling up and Staffing models
- Setting-up the India team to succeed
- Cultural Sensitivity
In the next few posts, we will discuss the above in detail.
*Note: This document comes directly from my experience in setting up and growing several IDCs/GCCs over last several years. This is an attempt to document my experience as and when my help and opinion was sought by my network. As such, the emphasis is more practical and actionable, than academic.
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