Karnataka has announced a new draft policy aimed at fostering the development of Global Capability Centres (GCCs) across the state. The policy seeks to establish 500 new GCCs and generate 3.5 lakh jobs by 2029, reinforcing the state’s standing as a global hub for the sector. This strategic move comes at a time when companies worldwide are increasingly realizing the value that GCCs bring in driving efficiencies, transformation, and growth.

To explore the implications of this policy further, we had the opportunity to interview Aveek Mukherjee, Co-founder & Managing Director of Gloplax, a firm specializing in GCC enablement. With over three decades of experience in setting up and running GCCs, Aveek provided deep insights into the potential impact of this policy. 

Aveek began by praising the policy initiative, considering it a significant step in the right direction. “The draft policy is a welcome initiative by the government. Over the years, companies have recognized the value that GCCs have added, which has led to their inclusion in the strategic roadmap for delivering efficiencies, transformation, and growth,” he said. Aveek further shared that his experience in establishing multiple GCCs, and now managing a company focused on GCC enablement, underscores the importance of a dedicated effort towards growing the sector. “A focused and dedicated effort towards this sector will certainly boost India’s overall ‘attractiveness index,’ and Bengaluru, in particular, stands to gain from it,” he noted.

For companies looking to set up GCCs, location plays a crucial role. According to Aveek, a successful GCC ecosystem is built on multiple factors. “It’s important to understand that a GCC thrives in an enabling ecosystem. This ecosystem includes access to infrastructure, ready and potentially ready talent, an innovation or start-up mindset, and relevant academic institutions. A conducive policy and legal environment, supported by government machinery, is also essential. Bringing these components together will require expertise and experience in this space,” he explained. Aveek expressed hope that the government has engaged practitioners from the industry to advise and implement this initiative effectively.

While the policy is still in the draft phase, Aveek highlighted an area where the government needs to focus—connectivity and infrastructure. He emphasized that good connectivity between a GCC and its parent company’s geography is vital. “One of the key aspects of any new location is infrastructure, especially for GCCs. Easy access and connectivity to the parent company’s geography are crucial. Consistent engagement with representatives from the parent company is essential for cultural integration, which is foundational for the success of any GCC,” he elaborated. Aveek reiterated that infrastructure needs to be robust enough to facilitate this ongoing interaction, ensuring smooth operations and effective collaboration.

When asked about the Rs 100 crore innovation fund proposed by the government, Aveek refrained from commenting on the adequacy of the amount, noting that its effectiveness would depend on how the funds are allocated and used. However, he was more enthusiastic about the ‘Beyond Bengaluru’ initiative, which aims to encourage businesses to explore other cities within Karnataka. “I like the idea because it can potentially impact at multiple levels—decongesting Bengaluru, developing other cities, and expanding the list of locations for companies to choose from. Additionally, this can help develop local ecosystems and possibly offer more attractive price points,” he said. However, Aveek pointed out that for most companies, Beyond Bengaluru might be considered when companies expand their footprint to second or third locations and probably not as much as the primary location for setting up GCCs. “Typically, companies may consider this as their second or third location, but probably not for their initial setup.”

Another notable aspect of the draft policy is the introduction of a Single Point of Contact (SPOC) for all GCC-related needs, an initiative that Aveek strongly supports. “Having a central entity to handle all the processes involved in setting up a GCC would be ideal,” “The long process times for critical approvals are frustrating for both us and our clients. If the government can fast-track these processes, it would enable quicker setup of GCCs, which would benefit all stakeholders,” Aveek added.

As more GCCs are established, the need for a skilled workforce will only increase. Aveek emphasized that skilling initiatives will play a vital role in meeting this demand. “More GCCs being set up means a greater need for talent that is ready and employable. Shortening the time to market is crucial. Skilling initiatives can be one solution, but it requires a holistic, dedicated effort involving commitment from both the industry and the government,” he observed. Aveek called for collaboration between academia, industry leaders, and the government to ensure the availability of a talent pool that meets the growing needs of the GCC sector.

Finally, Aveek discussed how large multinational corporations have largely dominated the GCC space, but mid-sized and smaller companies often need more time to enter due to perceived challenges. “The GCC space thus far has been the play of large MNCs. Mid-sized and smaller companies have been apprehensive.” At Gloplax, we are focused on making GCCs simple and accessible for companies, regardless of their size,” he stated. Aveek emphasized that flexible engagement models can help the smaller players to leverage the GCC ecosystem effectively. 

As Karnataka moves forward with finalizing its draft GCC policy, it is evident that the success of this initiative will rely on a balanced approach—one that takes into account the needs of companies of all sizes, emphasizes infrastructure and connectivity, and prioritizes skilling to ensure the talent pool is prepared for the evolving demands of the GCC ecosystem.