As global capability centres (GCCs) continue to emerge as one of India’s fastest growing corporate sectors, consulting firm Zinnove has highlighted five critical mistakes enterprises often make while setting up these centres, warning that poor early decisions can hurt long term scalability and innovation.
In a recent report, Zinnov compared GCC setup decisions to the first 60 seconds of an aircraft takeoff, arguing that most problems are rooted in decisions made during the initial stages rather than execution failures later. According to the firm, issues related to location strategy, hiring, governance and operating models often become expensive obstacles after the centre is operational.
One of the biggest mistakes companies make, according to Zinnov, is prioritising speed over long term strategy. While rapid GCC launches may create early momentum through quick office setups and hiring, the firm says companies often fail to define critical questions around capability ownership, integration with global teams and long term scalability. Zinnov noted that decisions shaping the next three years of a GCC are usually made in the first few weeks itself.
The report also cautioned against treating location decisions as merely a real estate or cost optimisation exercise. Zinnov observed that India’s GCC talent demand remains concentrated in a few major hubs because of stronger talent ecosystems, academic pipelines and innovation networks. Choosing cities based only on lower costs may eventually lead to higher attrition and hiring challenges, limiting the centre’s growth potential.
Another key issue identified by Zinnov is the tendency of enterprises to adopt generic GCC playbooks. The consulting firm argued that every GCC has a different purpose, ranging from cost efficiency and digital transformation to customer proximity or innovation. Applying identical governance structures and operating models across all centres can slow decision making and reduce effectiveness.
The report further stressed that the first few leadership hires are more important than large scale hiring targets. According to Zinnov, the GCC head and early management team define the culture, attract future talent and shape the relationship between India operations and global headquarters. Poor early hiring decisions can have long lasting organisational impact.
Finally, Zinnov underlined the importance of choosing an independent GCC setup partner. The firm warned that some advisors may be influenced by existing real estate, government or service provider relationships, which can bias recommendations. “The companies pulling ahead aren’t the ones who moved fastest,” Zinnov said, adding that successful GCCs are built through deliberate design and strategic clarity.
