USA – NEW YORK Trends and Developments Contributed by: James McPhillips, Vipul Nishawala and Meighan O’Reardon, Clifford Chance US LLP
GCCs in the PE sector PE firms are increasingly leveraging GCCs to provide shared services across their portfolio companies. This approach: • enables portfolio companies to share best practices and standardised processes, lead - ing to improved operational performance, cost savings and enhanced EBITDA; • facilitates better data management, analyt - ics, and reporting, which provides PE firms with valuable insights into the performance of their investments and an opportunity to drive innovation more effectively; • gives access to a highly skilled and cost- effective talent pool that might not otherwise have been available to the portfolio compa - nies, and that enables operational resilience, scalability, and growth; and • allows PE firms to de-risk their operations by strategically distributing business functions across multiple locations and minimising reli - ance on any geography. Importantly, GCCs now are playing a crucial role in facilitating a PE firm’s post-acquisition integration of a portfolio company. By provid - ing a centralised platform for shared services, GCCs reduce the time and resources required for a PE firm to maximise efficiencies in its new - ly acquired portfolio companies and thereby to maximise returns. Legal and strategic considerations for GCC set up The key legal and strategic considerations when setting up a GCC include the following. • Entity formation and registration – if a com - pany elects to establish a GCC on its own, it must decide on the appropriate legal structure for the GCC, which could include
• GCCs can reduce selling, general & admin - istrative expenses by 15–25% and increase efficiencies of sales and marketing by 25–45% (Accenture, Global Capability Cent - ers site ). • GCCs can be leadership incubators. As talent pools mature, 10–20% of global enterprise leaders are projected to be based in GCC locations (McKinsey Direct, The future of global centers, 12 May 2025). • GCCs are hubs of emerging talent. Today, 30 countries hold 91% of the world’s skilled force, with 62% based in Asia-Pacific, Africa, and Latin America. This percentage is pro - jected to increase to 67% by 2030 (Accen - ture, Rise of the Global Capability Center as a reinvention engine, 2024). • Today’s GCCs drive 5% to 34% of all enter - prise innovation (McKinsey, Beyond cost sav - ings: The global footprint of innovation hubs (podcast), 3 June 2025). • One in five Fortune 2000 companies has a GCC in India. This number is expected to double by 2030 (McKinsey Direct, The future of global centers, 12 May 2025). The authors are also seeing more creative ser - vice delivery solutions, with companies leverag - ing one or more GCC models as part of their overall technology and services ecosystem. These include the following. • Hybrid Model – a company uses a combina - tion of captive GCCs and outsourcing part - ners. • GCC-as-a-Service Model – a company engages one or more third parties to set up a GCC efficiently and with less risk. • Hub-and-Spoke Model – a company’s GCC is itself supported by satellite locations.
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