Shared Services Center vs GCC: 10 Key Differences Explained

In 2023, a US-based fintech company moved its accounts payable and IT support to a Shared Services Center in Manila. Six months later, they launched a Global Capability Center in Pune to build new credit scoring algorithms using machine learning. Both centers reported to the same COO—but served entirely different functions, with different talent, metrics, and business outcomes.

This isn’t an isolated example. As companies grow, many set up both SSCs and GCCs without fully understanding how their roles differ. The result? Overlapping operations, misaligned KPIs, and under-leveraged teams.

The difference isn’t just in what they do—it’s why they exist. SSCs are built to execute. GCCs are built to create.

In this article, we’ll break down 10 clear differences between Shared Services Centers and Global Capability Centers, based on how companies are structuring them today—not how they were defined a decade ago. If you’re planning to centralize operations, expand globally, or modernize your delivery model, this comparison will help you make the right call.

Shared Services Center vs Global Capability Center: 10 Key Differences

1. Purpose and Strategic Intent

• SSC: Shared Services Centers are built to consolidate routine business functions—like finance, HR, and procurement—into a single, standardized operation. The primary objective is cost-efficiency through centralization, eliminating duplication across regions, and improving process consistency. SSCs are typically evaluated on how well they streamline non-core operations, not on their contribution to strategic goals.
• GCC: Global Capability Centers, on the other hand, are designed with a broader, more strategic mandate. Their purpose goes beyond efficiency—they’re expected to drive core business capabilities such as product development, digital transformation, analytics, and innovation. GCCs play a long-term role in shaping global competitiveness, often working closely with business units to build IP, co-own platforms, or launch new customer experiences.

2. Functional Scope

• SSC: The scope of a typical SSC includes standardized, transaction-heavy tasks that are rules-based and repeatable. These functions include accounts payable, payroll processing, order-to-cash, IT ticketing, and onboarding services. They rarely touch customer-facing systems or require collaboration with product or marketing teams.
• GCC: GCCs support both transactional and strategic functions. In addition to shared services, they take on complex roles such as engineering, AI/ML development, DevOps, product design, data modeling, and customer experience management. Their structure enables cross-functional collaboration and supports workstreams that directly affect revenue, customer value, and product outcomes.

3. Innovation Capability

• SSC: Innovation in SSCs is typically limited to process improvements—like adopting automation for invoice processing or reducing ticket resolution times. These centers operate under strict service-level agreements (SLAs), and any changes to processes must go through approvals and governance checks. The operational model does not encourage experimentation or risk-taking.
• GCC: Innovation is built into the DNA of a GCC. These centers often run agile teams, host internal hackathons, adopt emerging technologies early, and contribute to global product roadmaps. They’re empowered to ideate, test, and implement new features, architectures, or solutions. GCCs are also structured to integrate with design, engineering, and marketing teams—making them central to the company’s innovation pipeline.

4. Talent Profile and Hiring

• SSC: SSCs primarily hire for operations and service delivery roles. These include shared service executives, analysts, and specialists who execute well-documented tasks using ERP systems. The hiring focus is on accuracy, speed, and process adherence, not on creativity or strategic thinking.
• GCC: GCCs seek out high-caliber, specialized talent—engineers, data scientists, product managers, UX designers, and cybersecurity analysts. These professionals are expected to solve complex problems, contribute to innovation, and align with evolving product or technology goals. Hiring here is more rigorous, often involving technical evaluations and alignment with the global team’s vision and culture.

5. Ownership and Control

• SSC: SSCs are often outsourced to third-party vendors (BPOs/KPOs) or co-managed by external partners. The parent company may define the goals, but day-to-day execution is handled by the service provider. This model offers cost flexibility, but limits direct control and responsiveness to strategic changes.
• GCC: A GCC is fully owned and managed by the parent enterprise. It follows the same internal culture, governance, and leadership structure as other global units. This ownership enables tighter alignment with the company’s roadmap, faster response to changes, and consistent quality standards across geographies. Teams within a GCC are not treated as external vendors—they are part of the core team.

6. Technology Stack

• SSC: The technology environment in an SSC is largely centered around automation platforms, workflow management tools, and ERP systems like SAP or Oracle. These tools support task execution and reporting but rarely allow for product development or large-scale technical innovation.
• GCC: GCCs work with advanced, modern technology stacks that mirror the global organization’s digital infrastructure. They use cloud-native environments, containerization tools, CI/CD pipelines, custom APIs, and development frameworks. Teams are involved in architecture planning, system integration, and building proprietary tools. The tech stack supports not just delivery—but innovation at scale.

7. KPIs and Performance Metrics

• SSC: SSC performance is assessed through cost-efficiency and operational accuracy. Common KPIs include cost per transaction, turnaround time, process compliance, error rate, and SLA adherence. The goal is stability and standardization—not experimentation or strategic impact.
• GCC: GCCs are measured on broader business and innovation metrics. These may include velocity of feature delivery, NPS (Net Promoter Score), customer adoption, defect rates, and system uptime. Innovation throughput—such as number of MVPs released or improvements shipped—may also be a key metric. The evaluation framework aligns with business unit outcomes, not just internal efficiency.

8. Geographic Strategy

• SSC: SSCs are typically set up in regions offering low labor costs and acceptable levels of service delivery. Cost arbitrage is the primary consideration, often leading to centers in countries like the Philippines, Eastern Europe, or tier-3 cities in India. These locations are chosen for affordability and availability of process-trained workforce.
• GCC: While GCCs are also cost-conscious, the selection of location is based on access to skilled, strategic talent. Cities like Bengaluru, Hyderabad, Pune, and now Indore or Ahmedabad are selected for their engineering and tech talent ecosystems, availability of research institutions, and infrastructure support. The location strategy prioritizes capability-building over pure cost-cutting.

9. Integration with Core Business Units

• SSC: An SSC functions like an internal service vendor. It receives service requests, processes them based on SOPs, and shares back outputs or reports. Its interaction with business units is transactional, and strategic involvement is minimal.
• GCC: GCCs are structurally embedded within global teams. They often work alongside HQ counterparts in real time—participating in sprint planning, roadmap discussions, and customer experience reviews. This level of integration allows them to directly influence products, platforms, and customer outcomes. GCCs aren’t supporting business units—they’re extending them.

10. Long-Term Evolution and Scalability

• SSC: Once processes are stabilized and optimized, an SSC typically reaches its operational ceiling. Any additional value must come from marginal process tweaks, automation, or scope expansion within the same functional category. It’s not designed for continuous strategic evolution.
• GCC: GCCs are inherently scalable—both in terms of size and strategic depth. Over time, they can evolve into global hubs for product leadership, innovation, and even P&L ownership. As the enterprise grows, the GCC grows with it—adding new capabilities, taking on emerging tech responsibilities, and becoming a core driver of global competitiveness.

Conclusion: The Choice Isn’t Just Operational—It’s Strategic

Shared Services Centers and Global Capability Centers might both promise efficiency—but what they deliver in the long term is fundamentally different.

If your priority is transactional excellence—streamlining processes, reducing overhead, and standardizing services—an SSC can offer that with precision. But if you’re building for the future, where agility, innovation, and capability ownership are key to staying competitive, then a GCC is the model built for scale and strategic depth.

The lines between operations and innovation are blurring. Modern enterprises aren’t choosing between saving money and building IP—they want both. That’s why the GCC model has seen explosive growth, especially in talent-rich, cost-effective regions like tier-2 cities in India.

Understanding the difference isn’t just useful—it’s essential. The right model will shape how you grow, what you build, and how fast you adapt to what’s next.

FAQs: Shared Services Center vs GCC

1. Can a Shared Services Center evolve into a Global Capability Center?

Many organizations start with an SSC and later expand into GCC functions by adding technology, analytics, or product teams. However, this shift isn’t automatic. It demands a cultural change, new talent strategy, deeper integration with core business units, and most importantly, a shift in ownership from service delivery to capability building.

2. Which model is better for cost savings?

SSCs are excellent for reducing cost per transaction across standardized functions. But GCCs provide a more balanced model—optimizing costs and delivering innovation. Over time, the value created by a GCC (in terms of speed, IP, and market readiness) often outweighs its initial setup costs.

Are SSCs outdated in today’s business environment?

SSCs remain effective for high-volume, repeatable work. However, if your organization is digital-first, product-led, or innovation-driven, an SSC alone won’t be enough. It must either evolve or be complemented by a GCC to meet future demands.

4. How do you decide between setting up an SSC or a GCC?

If your current need is to standardize operations, lower costs, and increase compliance, an SSC will serve you well. If you’re looking to build in-house tech, develop products, or scale global capabilities, a GCC will be the right fit. Many organizations use a hybrid approach, with SSCs handling operations and GCCs owning strategic workstreams.

5. How can Supersourcing help with GCC setup and scaling?

Supersourcing helps global companies establish high-performing GCCs in India—especially in tier-2 cities like Indore, Jaipur, and Ahmedabad. From location strategy and legal compliance to tech hiring, infrastructure setup, and governance design—we provide end-to-end GCC setup support. Our focus is not just cost-efficiency, but capability creation and innovation alignment from day one.