GCCs Adopt ‘Hub Plus One’ Plan to Reduce Concentration Risks
Recent data indicates that at least 20% of new investments into global capability centers (GCCs) over the next couple of years will adopt a “hub plus one” strategy. This approach allows firms to expand from metropolitan areas into tier-II cities. “Establishing a second delivery center reduces the risks associated with over-reliance on a single location,” stated Vikram Ahuja, cofounder of ANSR, an organization that assists clients in setting up GCCs nationwide. “Advancements in both physical and digital infrastructure are making these cities increasingly viable for global delivery.” Experts reveal that this model is rapidly gaining traction due to factors like…