Company-Owned, Partner-Operated Model Use To Rise 25% By 2030, Boost GCC Sector: Inductus

The adoption of the company-owned, partner-operated model, which is increasingly being used by companies, will rise by 25% by 2030.

Consulting and advisory services provider Inductus expects this model to boost growth of India's $105-billion global capability centre space. It said that the model has been a "game-changer" for India's GCC space.

And according to the report, the uptick of the COPO model is driven by its capacity to simplify operations while ensuring strategic ownership.

The combination of corporate ownership and local knowledge ensures that international businesses can quickly adapt to the Indian market while sustaining long-term growth, it said.

"With the ecosystem shifting towards experiencing over 3,000 GCCs by 2030 and attaining a market size of $105 billion, the COPO model is setting new benchmarks for asset management, responsiveness to markets, risk evasion, and scalability,” it said.

The Inductus report claimed that the adoption of the COPO model has improved companies' proprietary process control. It said that surveys showed 94% of firms improving their control over intellectual property compared to the conventional outsourcing models.

This structure has also minimised capital spending by 80% over five years, enabling companies to function more effectively at a lower cost.

With the GCC ecosystem spreading into tier-ii and tier-iii cities, scalability has emerged as one of the major strengths of the COPO model.

"The growth is fuelled by the COPO model's proven capability to shave compliance delays by 65%, achieve talent retention with less than 6% attrition rates, and minimise market volatility risk by 40%," the report estimated.

It also said that embracing the COPO model had led to a 37% reduction in legal and tax obligations for companies. This, according to the report, underlines the importance of the model as a risk-hedged strategy for doing business in India.

(With PTI inputs)