India’s GCC momentum is unprecedented, with over one new center being established every week. But velocity does not guarantee value realization. Too often, GCCs are launched with ambitious mandates, only to encounter integration friction, strategic drift, and governance misalignment. More often than one might guess, by year two, the initial euphoria can start to fade. Quiet doubts emerge. And without intervention, these blind spots can slow the progress of the GCC. Even stagnate. Or worse.

Here are some common pitfalls during set-up that derail mid-to-long-term GCC impact:

1. Assuming global approaches translate seamlessly into the Indian context. Replicating headquarters’ playbooks without calibrating for India’s nuances, cultural context, and collaboration protocols leads to operational friction and diluted outcomes.

2. Over-Indexing on cost arbitrage. Cost arbitrage is often the ignition point, but being overly focused on it as the primary KPI constrains the GCC’s strategic evolution. Sustainable value emerges when the center matures into a capability hub driving innovation and differentiation.

3. Neglecting structured change orchestration. A GCC launch can trigger latent resistance within the parent enterprise with concerns over role displacement, influence dilution, or control loss. Without intentional change management, these tensions compound over time. Integration of the GCC into the enterprise then remains a dream.

4. Misaligned or Untranslated Vision. A vision that is not co-owned by the global and local leadership risks relegating the GCC to a peripheral cost center. Similarly, if the vision is not positioned effectively in the local talent market, attracting and retaining high-caliber professionals becomes difficult.

5. Improper governance architecture. Effective governance extends beyond organizational charts. It requires decision-rights frameworks and seats at the right tables that embed the GCC within the enterprise value chain. Poor design creates accountability gaps, dilutes strategic alignment, and slows maturity.

6. Under-investment in leadership capital. Leadership depth is a primary value lever for GCCs. Without deliberate development and alignment, the center’s influence, innovation capacity, and talent stickiness remain sub-optimal.

7. Outsourcing-Oriented Evaluation Models. Evaluating GCCs through outsourcing lens (KPIs) diminishes strategic relevance. Success metrics must capture enterprise capability building, innovation, and value chain acceleration – not just operations SLAs.

8. Exclusion from Enterprise-Level Strategic Decision-Making. When GCC leaders are absent from the enterprise’s strategic tables, foresight and alignment suffer. Inclusion ensures the GCC operates as a fully integrated node in the organization’s value-creation network.

By years three or four, the same organizations that began with high ambitions may find themselves questioning if they did the right thing in the first place. A few (very few, but a considerable number) even discuss exit options.

The reality: These late-stage dilemmas are rarely “new problems”. They are, in most cases, the compounded effect of blind spots overlooked from day one. For organizations establishing GCCs, success lies in designing for endurance, leadership alignment, appropriate governance, and cross-cultural integration. From inception.

If you’ve navigated this journey, what has been your defining insight on building long-term GCC value?