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4 challenges that can derail a self-build GCC strategy

August 13, 2025

4 challenges that can derail a self-build GCC strategy

When setting up a global capability center, businesses need to understand the hidden factors that will make or break their success.

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In 1985, Texas Instruments launched the first-ever global capability center (GCC) in Bengaluru—a visionary bet on India’s engineering talent. That same year, Microsoft released Windows 1.0, and Back to the Future dominated theaters. While TI was ahead of its time, the decades that followed saw most companies treat GCCs as low-cost, back-office extensions: valuable, but peripheral. Today, that thinking is obsolete. Modern GCCs are strategic engines that design customer journeys, run fraud operations, embed AI into compliance processes and manage entire product platforms. By 2030, over 2,000 GCCs are expected to operate in India alone. As the model matures, more companies are choosing to build and operate their own GCCs independently, without third-party partners. But this self-build path, while promising full control, is fraught with execution risk. In our conversations with global transformation leaders—across banking, tech, healthcare and retail—four consistent and critical challenges emerge. Left unaddressed, these challenges can derail the value and credibility of a self-built GCC before it even scales. <h5>1.    The operating model challenge: Defining without clarity or intent</h5> Many organizations treat the GCC setup as a logistical project that requires them to focus on hiring, real estate and cost targets. But they skip the hard question: What exactly is the GCC designed to do—and how will it deliver that value? This leads to fuzzy mandates, misaligned leadership roles, siloed teams and a center that becomes reactive instead of strategic. A large UK-based financial services company began its India GCC journey with a narrow focus on operations and document processing. Over time, the local team demonstrated the ability to own onboarding journeys, drive customer due diligence logic refinement and participate in policy feedback loops. Since the original operating model didn’t allocate decision rights or embed product design roles, the team hit a ceiling—they were unable to fully influence outcomes or integrate with change programs. We recently partnered with a Fortune 100 company to launch a GCC. Initially envisioned as a focused technology center, the effort evolved as leaders began shaping the operating model. In doing so, we uncovered new opportunities to expand the scope, moving beyond delivery to include investments in IP development. Success in this case required more than launching a center. It meant rethinking systems and building a foundation for long-term value. Before building a GCC, businesses should: <ul> <li>Define a clear operating charter: Is the GCC a delivery engine, capability hub or transformation node? </li> <li>Align the governance model: What decision rights exist locally vs. globally? </li> <li>Identify what the GCC will own end-to-end, not just what it will support.</li> </ul>

A GCC is not a location. It is an operating construct. Without clarity on scope, decision-making and value ownership, it becomes a high-cost support team in disguise.

<h5> 2.    The functional sequencing challenge: Building in the wrong order</h5> Once the GCC is approved, many organizations rush to launch multiple functions simultaneously, often without foundational enablers like HR, compliance or tech infrastructure in place. Or worse, they start with low-impact back-office functions that fail to demonstrate strategic value. A leading US-based retail and e-commerce company launched its India GCC to accelerate customer experience and data capabilities. It began not with shared services but with digital transformation pods and analytics teams tied directly to US business units. That visibility helped the GCC gain early trust and sponsorship. Supporting functions were scaled in parallel, allowing speed without compromising compliance. Contrast that with a European consumer goods major that started its GCC journey with transactional finance and procurement. Its effort failed to demonstrate strategic relevance and delayed broader enterprise integration. Sequencing requires an intentional and phased approach that may not mirror how capabilities are typically built in the core business. But it is essential to realizing the full value of a GCC. To determine the best way to sequence GCC functions, businesses should: <ul> <li>Start with lighthouse functions—e.g., fraud operations, onboarding analytics or CX engineering—that can demonstrate early wins. </li> <li>Build enabling functions (HR, IT, risk, compliance) alongside these efforts, not after the fact. </li> <li>Prioritize functions based on interdependency, strategic visibility and scalability potential.</li> </ul>

The order in which you build GCC functions determines the speed at which you earn enterprise trust.

<h5> 3.    The enterprise change management challenge: Underestimating the resistance from within</h5> A new GCC changes power dynamics. It introduces new teams, new leadership layers and new ways of working. That creates friction. Without a structured change plan, the GCC faces passive resistance, unclear handoffs and slow adoption. Leaders I’ve spoken with often underestimate the internal resistance that can follow. A new GCC can create tension—misalignment, uncertainty or slow adoption—as teams adjust to new ways of working. Managing that shift requires focused attention alongside the operational build. A European-headquartered global pharmaceutical company launched a regulatory operations center in India. Despite having a capable team, the local center faced resistance from documentation owners in Europe reluctant to transfer approval authority. The results: Duplicate effort, delayed decisions and low morale. What turned the corner was a reset of the governance framework. This included defining joint KPIs, aligning sign-off rights and including GCC leads in global working committees. To succeed, leaders must define clear roles and align teams around shared goals. Without that clarity, businesses can experience confusion, friction and missed opportunities. To avoid that scenario, organizations should: <ul> <li>Treat the GCC launch as an enterprise change program, not just a setup initiative. </li> <li>Define clear role boundaries between global and GCC teams. </li> <li>Build shared goals and KPIs across regions to drive alignment. </li> <li>Invest early in cultural onboarding, visibility and trust-building.</li> </ul>

A GCC doesn’t just build capability—it challenges legacy behaviors. And without enterprise alignment, even the best designed GCC will struggle to gain influence.

<h5> 4.    The local market complexity challenge: Misreading ground realities</h5> Self-building a GCC means taking full ownership of the operating model: real estate, legal structure, HR policies, payroll and compliance. While many companies have experience in these areas, running them in a new market introduces unfamiliar risks. Many companies underestimate the local execution layer, from regulatory registration to vendor contracting, labor laws, talent availability and even power and data infrastructure. This results in delayed launches, non-compliance risks and productivity loss. A fast-growing US-based digital bank began setting up its GCC in India with ambitious timelines. But progress stalled due to: <ul> <li>Delays in SEZ/ STPI registrations. </li> <li>Vendor lock-in with a real estate provider unfamiliar with banking and financial services security protocols. </li> <li>Payroll setup challenges with an unproven local partner.</li> </ul> This pushed their go-live back by several months. Contrast that with what we saw firsthand with a regional banking partner establishing a GCC to enhance customer experience. Rather than go it alone, the organization engaged external partners early to navigate local complexity. That move helped them avoid common missteps—such as regulatory delays and misaligned vendors—while also helping to accelerate setup, ensure compliance and keep internal teams focused on building the capabilities that mattered most. That kind of foresight is critical. The most successful GCC builds don’t wait for problems to surface—they anticipate them. To be ready for local realities, businesses should: <ul> <li>Understand that global experience does not always translate into local expertise. </li> <li>Bring in specialized GCC partners or advisors to handle early-stage execution risk. </li> <li>Build local governance that mirrors global control expectations.</li> </ul>

The biggest GCC delays do not come from strategy. They come from failing to get execution right on the ground.

<h4> Self-building a GCC is a strategic choice—but not a solo mission</h4> The next generation of GCCs will define enterprise agility, resilience and innovation velocity. These centers are no longer back-office engines. They are front-line business units, operating at the intersection of customer, technology and risk. But a self-built GCC doesn’t automatically deliver that value. By getting the operating model, function sequencing, enterprise alignment and local execution right, companies can build a GCC with strategic relevance and delivery momentum.

Sailaja Josyula

Global Head, GCC Service Line

Sailaja Josyula is the Global Head of Cognizant’s Global Capability Centers Service Line. She has nearly 29 years of professional experience and first joined Cognizant in 2018.