Wave of ‘Micro Centers’ Redefines Purpose of Offshore Ops

As generative AI ignites innovation across all economic sectors, even small and medium enterprises (SMEs) are now establishing global capability centers (GCCs) abroad.

Of the more than 1,600 GCCs in India, nearly a quarter are owned by startups or SMEs — and most of these are staffed by fewer than 50 employees, according to New York-based consultancy Alvarez & Marsal.

What was once the domain of large corporations is now being redefined by lean, nimble businesses.

These compact offshore hubs, dubbed ‘micro GCCs’, are spreading fast in Latin America too — particularly in Costa Rica, Chile, and Colombia, says Michael Fullwood, partner at advisory firm ISG.

“This helps them tackle talent shortages and other operational challenges,” Fullwood told Nearshore Americas.

“Brazil and Argentina have always had some GCC activity, and now they are also seeing growth in micro GCCs.”

While GCCs are nothing new, the surge in micro centers is a trend that’s accelerated over the past 18 months, he noted.

As generative AI reshapes business models and remote work blurs geographical boundaries, building GCCs has become more of a strategic necessity than a luxury for SMEs looking to scale fast.

So why the growing shift toward GCCs?

The escalating threat of cybersecurity is the primary reason some companies choose to establish GCCs instead of looking for outsourcers. GCCs represent a form of insourcing, according to Alvarez & Marsal. GCCs eliminate the need to entrust sensitive data to third-party outsourcing providers.

But the benefits don’t stop at data security. One of the greatest strengths of GCCs lies in their ability to rapidly assemble diverse, high-skill teams. For SMEs, that’s a game-changer. These centers have also emerged as effective tools for retaining top talent, giving teams a stable, long-term base to grow and evolve.

Initially, some SMEs launched GCCs to access niche capabilities — especially in areas like data analytics. But the ambition is now growing. A growing number of micro GCCs are being built with one core goal: developing AI-led capabilities for their parent firms.

Fullwood observed that these centers are now playing a central role in core business operations. “In biotech, they might oversee drug lifecycle management. In manufacturing, they’re streamlining supply chains. And in banking, they’re leading tech-driven transformation and engineering projects.”

In countries like India—where automation once sparked fears about IT job losses — the rise of micro GCCs is offering fresh opportunities for skilled professionals.  Some traditional outsourcing companies are actively enabling this shift by launching new business units dedicated to GCC support.

A prime example is Quess Corp, a heavyweight in staffing and workforce solutions. Earlier this month, Quess launched Origint, a subsidiary offering end-to-end services for setting up, scaling, and managing GCCs across global markets.

How Micro GCCs are Built?

Most GCCs today are built using one of three models: DIY (Do It Yourself), BOT (Build-Operate-Transfer), or Hybrid BOT. Among them, the BOT model has emerged as a favorite — especially among foreign companies looking to test unfamiliar markets without incurring too much risk upfront.

In the BOT approach, the GCC partner sets up infrastructure, manages daily operations, and stabilizes systems during the early stages. Once things are running smoothly, control is handed over to the parent firm.

Local enablers like Origint frequently partner with government agencies and universities to cultivate a broader ecosystem that attracts multinationals to establish captive centers. They also play a crucial role in navigating the legal complexities, assisting foreign firms in complying with intricate tax structures, currency regulations, and compliance.