The same business that receives the services owns and runs global inhouse centers (GIC). Which are service delivery operations that are often based in low-cost regions. In other words, GICs don’t outsource their work to a different company.

The GIC landscape is, however, going through a significant upheaval. The low-cost centers serving transactional and tedious repetitive work for the main corporation. To take advantage of cost arbitrage are no longer GICs.

The globalization of in-house centers has enabled them to develop and broaden their offerings. Moving beyond the execution of business processes to include strategic IT and R&D/engineering services.

The fact that there is a talented personnel pool and a supporting ecosystem that fosters growth. Creating the ideal atmosphere for GICs to flourish, is a crucial factor in why this transition was able to occur.

Value-added services

As they compete for a larger stake in India’s digitization growth story. They are evolving into Innovation Centers, Centers of Excellence. And Program Management Offices that anchor major initiatives and various value-added services for the parent firm.

GICs are a wise investment for businesses aiming to grow quickly. Because they are an essential part of an organization’s value chain.

An offshore service known as a GIC, or global inhouse center. Has witnessed a 25% increase in popularity (and revenue, equivalent to US$38-42 billion) in recent years.

Businesses can strategically position themselves in areas with the greatest potential for expansion by making an investment in a GIC.

GICs initially created to provide access to new talent pools, but as time has gone on. They expanded to include various ecosystems and value-added advantages.

Here is a quick approach to developing and building a successful global in-house center. While taking future growth expectations from such organizations into account.

Important Things to Keep in Mind When Building Global In-House Centers

To become future-focused, GICs must concentrate on the following six major areas during the following three to five years:

Business accountability, developing into a premier talent hub. Putting digital IT at the core of the organization while ensuring traditional IT prepared for digital. Becoming a center of excellence for data and analytics, pursuing sustained cost excellence. And implementing agile working methods are some of the goals.
It’s crucial to thoroughly prepare and carry out the setup of a GIC. Corporate, tax, regulatory, commercial, operational, and contractual challenges just a few of the many that need to addressed.

As a result of their interdependence, it is crucial to ensure that all of these factors taken into account. When making decisions concerning your global in-house center.

Local Advice

To successfully navigate India’s business environment, it is crucial to have knowledgeable local counsel. Who are conversant with the country’s legal principles and procedures. India has a wide range of laws and regulations that may have an impact on businesses, including zoning and real estate laws, employment laws, company and partnership laws, laws governing intellectual property and data protection, licensing requirements, and good citizenship laws.

In order to help businesses navigate India’s regulatory approval procedure and avoid costly errors, local counsel can be quite beneficial.

Company counsel in the U.S./Europe should collaborate closely with local counsel in India to make sure that India-specific concerns are in line with the larger commercial, legal, and contractual framework for the global inhouse center and the business. This intimate working relationship will make it more likely that all issues will taken into account and dealt with quickly and effectively.

Tax implications

Setting up a worldwide in-house center can be a challenging task that calls for thorough tax planning, taking both home and foreign tax regulations into account, as well as taking necessary foreign exchange requirements into account.

Companies must choose the right corporate family organizations to invest in, hold ownership interests in, and receive repatriation of profits made by the global in-house center in order to comply with tax regulations.

The OECD Transfer Pricing Guidelines, domestic tax legislation, and Indian tax laws all require that fees for services rendered by the GIC to the firm and its affiliates be compliant with transfer pricing rules. Consideration should given to possible excessive accumulations of profits within the GIC as a result of transfer pricing markups, among other factors.


People Resources

The value that the GIC offers to the enterprise company will significantly influenced by the caliber of the people that the GIC hires. As a result, consulting with an Indian talent acquisition organization that has a proven track record of finding top personnel for other clients is in the best interests of the company. Companies should be aware of the fact that employment regulations and procedures in India differ significantly from those in the United States or other European nations when making job offers and selecting candidates.

For instance, there is no such thing as a “at will” employee in India; instead, employment contracts are the standard. Company must also take the necessary precautions to reduce the possibility of multiple employment claims against the GIC and its wealthier parent companies.


To accommodate their expanding GIC enterprises, several organizations have had difficulty finding quality office space. Obtain favorable conditions for long-term renewals and alternatives for expanding into adjacent space if your business leases space.

The commercial terms of leases in Asia differ from those in the United States or Europe, and this is something that businesses need to be aware of.

It’s essential to have market data on rental prices, escalations, running costs, local taxes, and other fees and lease conditions from local specialists who are knowledgeable about the area to avoid misunderstandings or problems in the future.

Best game in 2023: Drift Hunters – a totally unrestricted free online drifting game where you can meet different supercars and strut through them.

Regulations for International Trade

The GIC will likely export technology to and from India as part of its services to the corporation and its affiliates. Prior to export (or considered export), all software and other technology should be reviewed by a compliance program to detect any export licenses or other requirements.

Other applicable laws, rules, and compliance requirements, such as the Foreign Corrupt Practices Act, should also be taken into account. Counterparties should be contractually obligated to abide by these laws.


It’s critical for companies to reassess their strategies as digital technologies get more complex and disruptive. Companies have a fantastic opportunity to stay competitive and succeed thanks to next-generation GICs.

While low-cost India has a skill pool that is undoubtedly enticing to businesses, success is not ensured. For GICs to reach their full potential, rigorous planning and execution are necessary, as well as a dedication of resources and knowledge of India’s particular needs.

Previous article5 Content Marketing Trends to Keep an Eye on in 2023
Next articleShipping A Car From Hawaii To California? Here’s What You Need To Know.
Ghiselle rousso
Oliver James is a UK-based professional blogger, content writer, and content marketer who writes about travel and tourism, finance, real estate, and other topics on his blog. Passionate about writing, traveling, and getting the best deal on everything he buys, Oliver also writes for customers and helps them publicize their products, and services in the US and UK markets. He is a traveler who has visited over 35 countries and loves his job because it gives him the opportunity to find stories, experiences, and places which he can share with his readers. Oliver James is a professional blogger, content marketer, traveler, and electronics enthusiast. He started blogging in 2016 and has become a contributing writer for several blogs, including Android Authority and Elecpros. Oliver has also published his own informational books with Kindle Direct Publishing on subjects like Flappy Bird and Google Cardboard.