Enough is enough. All these GCCs mushrooming across the globe aren’t savings, they’re a massive cost drain. On paper we pitch it as labor arbitrage. In reality, we’re bleeding money in many ways no one wants to put on a slide.
Here’s what it actually costs the company:
Duplication and rework: The same work gets done 2x, 3x, 4x across several functions and regions because no one is clear on ownership. Then we pay again to undo and redo it.
Coordination tax: Endless meetings, handoffs, time-zone ping-pong, and “alignment” calls that add zero value. Hours turn into weeks.
Quality and speed hit: Confusion over who owns what slows decisions to a crawl. We ship late, ship broken, and pay to fix it.
Attrition and morale: Good people burn out navigating the bureaucracy and leave. Replacing them costs more than we “saved.”
Leadership overhead: We keep adding layers just to manage the GCCs instead of managing the business.
Needless travel and real estate: do we even have a number of how much we spend on T&E with GCC travel as well as the real estate?
So leaders, stop hiding behind “labor arbitrage.” Wake up. Stop the endless mushrooming of GCCs. Have some common sense and dignity, and start running the company like you actually care about costs and outcomes.