Foreword by Arun Mehra FCA
The accountancy outsourcing and offshoring model continues to evolve globally.
We have seen international firms work with partner companies in countries in such as India and The Philippines who provide suitable skilled manpower. Such arrangements are usually on a contractual basis, where the international company pays based on hours worked or headcount.
However, the Global Capability Centres (GCC), also known as captives, have historically been the preserve of the larger firms such as the Big 4.
But increasingly we are starting to see smaller organisations set up their own operations (GCC’s) offshore rather than working with a partner in the offshore location, going for direct ownership of the offshore entity – enabling them to have full control to grow their firms globally.
This is exactly what I did at Samera. For many years we worked with third party outsourcing firms in India, but eventually we felt we could grow faster and more efficiently if we owned our offshore team. We formed an Indian company and began to hire people one by one.
It’s certainly not for all firms, but it’s definitely a great solution for firms seeking to scale.
I hope you find this post insightful for anyone looking at the options of building an offshore team.
Arun Mehra, Samera CEO
Traditionally, outsourcing was primarily about cost-saving through offshore staffing. However, as businesses grow more complex, accountancy firms are realizing that outsourcing must evolve beyond a mere cost-cutting mechanism. Firms are now looking for ways to enhance efficiency, manage peak workloads, and deliver superior client experiences—all while staying competitive in an increasingly globalized market.
Enter Global Capability Centres (GCCs): centralized hubs that offer a strategic solution to these challenges. For context, the setup landscape has undergone significant transformation in recent years, especially in India, which now represents almost 50% of all new GCC setups [1].
By combining scalability, technological innovation, and skilled expertise, GCCs are redefining how accountancy firms approach outsourcing and offshoring. This part of the accounting industry’s evolution is about transforming operations and future-proofing businesses for sustained growth.
Key Determinants of a Successful GCC
Establishing a GCC is no longer just an operational decision – it’s a strategic investment that requires careful planning and alignment with business goals.
In fact, there has been a near 40% increase in global spending on accounting outsourcing and a 20% surge in interest over the last five years, reflecting the industry’s pivotal shift towards outsourcing solutions [2].
Here are the key determinants that shape the success of a GCC and how they empower accountancy firms:
Skilled Workforce
At the heart of every GCC is its talent pool. Accountancy firms rely on highly trained professionals to handle specialized tasks such as bookkeeping, financial reporting, tax compliance, and audit support. A robust workforce ensures that firms can meet diverse client demands while adhering to global accounting standards like IFRS or GAAP.
For example, in a GCC setting, the availability of experienced professionals in financial analytics can support a firm’s advisory services, while experts in compliance ensure accuracy and adherence to evolving regulations. By housing these skills under one roof, a GCC eliminates the inefficiencies of fragmented outsourcing setups.
Cost Efficiency with Value Creation
While cost-saving remains a key motivator, modern GCCs focus on delivering value. Accountancy firms can leverage GCCs to scale their operations without proportionately increasing overhead costs. This is particularly beneficial during tax seasons or when onboarding new clients, where GCCs can absorb additional workloads seamlessly.
Moreover, GCCs allow firms to reinvest savings into technology upgrades or client-centric initiatives. By reducing the operational burden, firms can focus on building deeper client relationships and expanding their service portfolio.
Technological Infrastructure
In today’s digital-first world, technology is a game-changer for GCCs. A well-equipped GCC leverages advanced accounting software, automation tools, and data analytics to deliver accurate and timely results.
For instance, automation can handle repetitive tasks like bank reconciliations or invoice processing, freeing up skilled professionals to focus on high-value activities like financial forecasting. Cloud-based platforms ensure that data is accessible across geographies, enabling real-time collaboration between the GCC and the firm’s onshore teams.
Firms operating a GCC with strong technological capabilities are better positioned to offer services like forensic accounting, advanced tax planning, and risk management—all of which add significant value to clients.
Favourable Business Environment
The ease of setting up and operating a GCC depends heavily on the host country’s regulatory framework. Accountancy firms require a stable business environment with supportive tax policies, clear compliance guidelines, and strong intellectual property protections.
Additionally, access to resources like business parks, training facilities, and government incentives for foreign investment makes certain locations more attractive. This ensures that firms can focus on building a robust operational framework rather than navigating bureaucratic hurdles.
Cultural Alignment and Seamless Communication
The success of a GCC lies in its ability to integrate with the parent company’s culture and work ethos. For accountancy firms, this means ensuring that the offshore team understands client expectations, adheres to deadlines, and communicates effectively.
Strong cultural alignment minimizes miscommunication and fosters collaboration between teams. This is especially crucial for client-facing processes like preparing management reports or handling sensitive financial data, where accuracy and timeliness are non-negotiable.
A GCC will increasingly become the norm, raising valuations of global firms
In this rapidly changing environment, we anticipate that those firms that have their own GCC’s will become increasingly valuable. Having a stable, capable team allows firms to grow faster and gain new business, supported by an efficient team in the GCC, this will attract a greater pool of investors seeking better returns on their investments.
We firmly believe that any firms that establish their own GCC’s will have greater prospects and higher valuations than those that do not.
5 Indicators Showing Why India is a Preferred GCC Destination
India has cemented itself as a global leader in hosting GCCs, particularly for accountancy firms. As of 2023, Indian GCCs employ over 1.5 million professionals. This number is expected to rise significantly, with the headcount anticipated to reach 2.5 to 2.8 million by 2030, reflecting the expanding scope and scale of these centers [3].
Here are 5 indicators pointing why India is fast becoming the go-to destination for setting up GCCs:
- Talent Pool Depth:
India produces thousands of finance and accounting graduates every year, many of whom are well-versed in global standards. This abundant talent pool ensures firms have access to skilled professionals for everything from basic bookkeeping to complex tax planning. - Cost Advantage with Quality:
While cost savings are significant, India’s value proposition extends beyond affordability. The country’s professionals are known for delivering high-quality outputs, making it a reliable destination for accountancy GCCs. - Mature Outsourcing Ecosystem:
India has been a hub for outsourcing for decades. In fact, India’s finance and accounting BPO market is projected to reach $4.88 billion by 2030, growing at an 11% CAGR from 2025 [4]. This means firms can benefit from established infrastructure, streamlined processes, and tried-and-tested frameworks, reducing the learning curve for new GCC setups. - Technological Expertise:
Indian GCCs are at the forefront of adopting automation, AI, and cloud technologies in accounting processes. This tech-savviness ensures firms can offer cutting-edge solutions to their clients. - Cultural and Linguistic Compatibility:
English proficiency and a strong understanding of Western business practices make Indian teams easy to work with. This compatibility ensures that communication flows smoothly, a critical factor for maintaining service quality.
Conclusion
As the accounting outsourcing landscape continues to evolve, GCCs are emerging as the way forward for firms seeking to stay competitive. These hubs are no longer just cost-saving mechanisms but strategic assets that drive innovation, scalability, and client satisfaction.
For accountancy firms considering offshoring, the message is clear: adapting to this model isn’t just an option—it’s a necessity. And with its unique advantages, India remains a compelling choice for firms looking to set up a GCC. The question isn’t whether you should establish one but how quickly you can make it a cornerstone of your global strategy.
Bibliography
- https://www.everestgrp.com/peak-matrix/shared-services-gics-peak-matrix/global-in-house-center-gic-setup-capabilities-in-india-provider.html
- https://www.accountancyage.com/2024/03/26/figures-reveal-enormous-rise-in-firms-choosing-accountancy-outsourcing-as-industry-faces-pivotal-moment/
- https://thefinancestory.com/global-capability-centers-in-india-create-opportunity-for-tax-professionals
- https://www.grandviewresearch.com/horizon/outlook/finance-and-accounting-business-process-outsourcing-market/india
Reviewed By:
Arun Mehra
Samera CEO
Arun, CEO of Samera, is an experienced accountant and dental practice owner. He specialises in accountancy, financial directorship, squat practices and practice management.
