As global retail moves deeper into the digital era, forward-looking companies are reimagining how and where work gets done. One such trailblazer is Target, the eighth-largest retailer in the U.S., which has strategically leveraged India to build a powerhouse Global Capability Center (GCC).
Established in Bengaluru, Target’s India GCC has grown from a modest IT team to a thriving hub responsible for 25% of the company’s global workforce.
This bold move has transformed how Target innovates, builds technology, and serves millions of customers across digital and physical platforms. Here’s how they did it—and what other global brands can learn from this playbook.
The Challenge: Closing the Gap Between Stores and Digital Commerce
In the early 2000s, Target recognized a critical shift in consumer behavior. Shoppers were increasingly seeking seamless omnichannel experiences—from in-store pickup to mobile browsing and quick delivery. Yet, to deliver on these evolving expectations, Target needed:
- Stronger digital capabilities, especially in eCommerce and supply chain tech.
- Access to high-quality technical talent, particularly in emerging areas like data science and automation.
- A way to scale without depending on fragmented outsourcing models.
The company lacked the internal infrastructure to achieve this transformation rapidly and cost-effectively within the U.S. market. It needed a new engine for innovation—one with global scale and agility.
The Approach: Building a GCC in India to Power Transformation
In 2005, Target partnered with ANSR, a GCC solution provider to establish its India operations in Bengaluru. The initial team focused on IT support, but over the years, the GCC evolved into a strategic global capability hub spanning multiple business functions.
The approach was comprehensive and future-forward:
- Embracing agile methodologies to ensure iterative, customer-centric development.
- Investing in open-source tools and in-house product development.
- Creating cross-functional teams that could partner closely with U.S. counterparts to deliver end-to-end solutions.
Today, Target’s India GCC isn’t just an offshore support center—it’s a core innovation engine contributing directly to customer experience, store optimization, and digital transformation initiatives.
Key Aspects of Target’s GCC
Diverse Functional Coverage
Target’s Bengaluru GCC supports multiple functions including marketing, supply chain, technology, stores, product development, data science, and RPA—making it a fully integrated extension of Target’s global operations.
Agile Methodologies and Open-Source Culture
Operating with agile principles, Target India ensures rapid development and collaboration. The team contributes to over 124 GitHub repositories, reflecting its strong open-source engagement and culture of continuous innovation.
Advanced Technologies and In-House Engineering
The GCC leads AI, machine learning, CGI, and product engineering efforts. These capabilities power both backend systems and customer-facing solutions, positioning Target at the forefront of retail technology innovation.
Customer-Centric Innovation
Target’s India team has enabled services like 3D shoppable rooms, Drive-Up, Order Pickup, and Shipt™ deliveries—creating fast, convenient, and seamless shopping experiences across digital and physical touchpoints.
Scalable Data Capabilities
Processing over 8TB of data daily, the GCC drives data-informed decisions across functions like merchandising, fulfillment, and marketing—empowering smarter, faster, and more precise business strategies.
Operational Excellence
The India center supports Guest Order Management and Enterprise Checkout Systems, ensuring accuracy, unified transactions, and smooth service delivery across in-store, online, and mobile platforms.
Customer-Focused Innovation
From launching 3D shoppable rooms to enhancing order pickup and drive-up services, the India GCC plays a central role in building experiences that delight millions of customers.
The Outcome
Target’s India GCC has evolved into a strategic driver of growth, innovation, and operational excellence for the company worldwide. Its impact is measurable across key business dimensions:
- 25% of Target’s global workforce is now based in India.
- The GCC played a key role in over 400 store remodels in collaboration with Target’s Minneapolis team.
- In 2020 alone, the center contributed to 6 patent filings.
- Target.com saw a 30% improvement in search relevancy, thanks to innovations from the India team.
By integrating cutting-edge technologies, agile workflows, and diverse talent into a single high-performance hub, Target has positioned its India GCC as a global center of excellence—one that not only supports operations but actively shapes the future of retail.
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Why It Matters for Global Brands
Target’s GCC story proves that building global capability isn’t just about saving costs—it’s about unlocking new frontiers of growth. Here’s why it stands out:
- Global Workforce Strategy: Integrating a global talent model allows companies to scale without compromising innovation.
- Speed to Market: With agile teams in India, Target reduced development cycles and brought new digital features to market faster.
- Innovation at Scale: From data processing to new patents, the India GCC is a hub of intellectual capital.
- Brand Differentiation: Target has built distinct, digitally-enabled customer experiences that set it apart in a crowded retail space.
As more companies seek agility, access to talent, and scalable innovation, Target’s approach offers a compelling framework for setting up high-performing GCCs.
Conclusion
Target’s Global Capability Center in India is a strategic nerve center that powers everything from backend analytics to customer-facing innovations. By embedding agility, embracing open-source thinking, and empowering its Indian workforce, Target has created a model that many global brands now seek to emulate.
In an era where tech, data, and experience converge, Target’s GCC success is a timely reminder: when you invest in the right talent, the right region, and the right model—you don’t just support the business. You transform it.
Frequently Asked Questions (FAQs)
1. What is Target’s Global Capability Center in India responsible for?
Target’s India GCC supports a wide array of functions, including technology, data science, supply chain, product development, and marketing. It contributes to both backend operations and customer-facing innovations.
2. How large is Target’s India GCC workforce?
As of the latest data, 25% of Target’s global workforce is based out of its Bengaluru GCC, underscoring its strategic importance to the company’s operations.
3. What are some innovations driven by Target’s GCC?
The GCC has helped launch solutions like 3D shoppable rooms, enhanced search on Target.com, and developed features for order pickup and drive-up services—all while contributing to multiple patent filings.
4. How does Target ensure the GCC stays aligned with its U.S. operations?
The India team works closely with the Minneapolis headquarters through agile workflows, collaborative sprints, and shared goals, ensuring seamless alignment and continuous feedback loops.
5. Can Supersourcing help other retail brands build similar GCCs in India?
Yes. Supersourcing specializes in helping global retailers and tech companies set up customized GCCs in India, covering everything from talent acquisition and infrastructure to compliance and delivery governance. Our solutions are designed for flexibility, speed, and long-term scalability.