GCC vs GBS Explained: Key Differences Between the Two Global Business Models

Introduction 

In the global business scenario of today, two business models have gained prominence, which are the Global Capability Center (GCC) model and the Global Business Services (GBS) model. Companies looking to expand or manage operations globally often adopt one of these models. However, stakeholders and customers frequently misunderstand the difference between GCC and GBS. In this blog, let us distinguish between the two models and understand the difference.  

What is a GCC? 

A GCC is a dedicated offshore unit set up by companies, typically in countries like India, where labor is cheaper and more affordable, to handle core business functions such as Finance and Accounting, IT, HR, analytics, and more. These centers operate as an extension of the parent company and are renowned for delivering cost-effective, high-quality, and scalable support services. Think of a GCC on the following lines: 

• It is a dedicated back office in another country, such as India, where the labor is skilled and more affordable.  

• It is owned or operated either directly by the parent company or through a white-label outsourcing partner. 

• A GCC is tasked with delivering critical business functions. Also, it is aligned with the parent company’s processes, data security protocols, and quality standards.  

What Is a GBS? 

Contrarily, a global business center is a centralized operating model that integrates and delivers multiple business support services. These services are spread across departments like Finance, HR, IT, Procurement, Customer Service, and others. In simpler terms, a GBS is a way large companies manage their support functions all under one roof. Instead of having separate teams for each function in different locations, a GBS brings them together into one central team. The central team’s function is to serve the entire company, enabling cost savings, increased efficiency, and faster service delivery through tools such as automation and AI. GBS teams often work across different countries and time zones to support global operations. Think of a GBS on the following lines:  

• An evolved form of shared services and outsourcing. 

• An enterprise-wide model that consolidates different support functions under one umbrella to drive efficiency and standardization. 

• Focused not just on cost savings, but also on process optimization, digital transformation, and business impact. 

For further understanding, here is a table citing the key differences between the two:  

Table 1: Key differences between GCC and GBS 

Read Also: A Beginner’s Guide to Understanding US GAAP: Why It’s Essential for Financial Reporting

KMK Ventures as your GCC 

KMK acts as a white-label Global Capability Center for U.S.-based companies, especially in the Finance & Accounting (F&A) and Tax domains. Here’s how: 

• Dedicated teams under your brand 

KMK provides exclusive, full-time offshore teams that work as a seamless extension of your in-house finance department—branded under your company name, following your workflows, your tools, and your timelines. 

• Domain expertise 

KMK specializes in accounting, bookkeeping, tax preparation, payroll processing, reconciliations, and fund accounting, especially for industries like CPG, retail, manufacturing, tech startups, PE-backed firms, and CPA firms. 

• Compliance and data security 

Operating as a GCC, KMK ensures SOC 2 compliance, data confidentiality, and U.S. GAAP standards, making it a strategic, secure, and compliant outsourcing partner. 

• Scalable and cost-efficient 

Clients benefit from cost savings of 40–60%, the ability to scale quickly without hiring overhead, and round-the-clock support, thanks to India’s favorable time zone overlap. 

• White-labelled delivery 

KMK’s teams work behind the scenes, so your clients see your brand and not a third party. This is a key feature of a white-label GCC model. 

Conclusion 

In summary, both GCC and GBS models help companies streamline operations and reduce costs, but they serve different needs. While GCCs focus on providing dedicated, specialized support, often offshore, GBS models bring multiple business functions together under one centralized setup. 

If your business is looking for a reliable offshore accounting and tax support team, a white-labeled GCC model like KMK Ventures can be a wise choice. We operate as an extension of your team—secure, cost-effective, and fully aligned with your brand. Still unsure which model fits your needs? That’s where KMK comes in—we’ll help you choose the right path forward.