A Global Capability Centre (GCC) often supports business functions that global teams depend on every day. An interruption affecting its employees, systems, workspace or suppliers can therefore have consequences beyond the Indian operation.
Risk management should begin before the centre launches and continue as its responsibilities expand. The aim is not to eliminate every possible disruption. It is to identify important risks, reduce avoidable exposure and establish clear responses when something goes wrong.
This guide covers the main risk areas GCC leaders should consider when planning and operating a centre in India.
1. Identify risks before launch
A risk assessment should reflect the GCC’s specific activities, workforce, technology and operating model.
Common risk categories include:
- Operational risks: Delays, process failures, unclear responsibilities or dependence on individual employees.
- Talent risks: Difficulty hiring specialist roles, employee attrition or insufficient management capacity.
- Technology risks: System outages, cyber incidents, data loss or inadequate IT support.
- Compliance risks: Failure to meet applicable legal, regulatory, contractual or internal requirements.
- Workspace risks: Building access issues, infrastructure failures, insufficient capacity or unsuitable facilities.
- Third-party risks: Disruption involving technology vendors, workspace providers or other service partners.
- Financial risks: Unexpected operating costs, delayed hiring or long-term commitments that exceed actual demand.
Prioritise risks according to their likelihood, potential impact and the time required to recover. A simple risk register can record each risk, its owner, preventive measures, response plan and review date.
2. Establish clear ownership and escalation paths
A risk plan is useful only when people know who must act.
Define responsibilities across India leadership, global management, IT, security, HR, finance, legal and facilities teams. For significant risks, specify who can make decisions, who must be informed and when an issue should be escalated.
A practical governance structure should include:
- Named owners for critical operational risks
- Clear reporting and escalation channels
- Documented approval responsibilities
- Defined incident communication procedures
- Regular reviews of unresolved risks
- A process for updating the risk register
Avoid relying on informal understandings between individual managers. As the GCC grows, responsibilities should remain clear even when employees or reporting lines change.
3. Prepare for technology and cybersecurity incidents
Technology interruptions can prevent employees from accessing applications, communicating with global teams or completing essential work.
Identify the systems required for critical services and determine how long each service can remain unavailable before the disruption becomes unacceptable. Establish recovery priorities and responsibilities with the global technology team.
The plan should cover access management, endpoint security, backups, incident reporting, recovery procedures and communication with affected stakeholders.
Employees should know how to report suspicious activity or suspected data exposure. The response process should define how the incident will be assessed, contained, investigated and communicated.
For a detailed technology checklist, see https://www.flexospaces.com/resources/gcc-technology-infrastructure-and-cybersecurity-checklist/.
4. Protect critical knowledge and processes
A GCC can become vulnerable when essential knowledge sits with one employee or when key procedures are undocumented.
Identify processes that depend on a small number of specialists. Maintain current documentation, designate backups for critical responsibilities and provide cross-training where practical.
Succession planning is especially important for leadership roles and positions requiring rare technical or domain expertise.
Review whether employees can access the documentation they need during an incident. Information that exists but cannot be found or accessed quickly may provide little practical value during a disruption.
5. Plan for workforce disruption
Workforce availability can be affected by local emergencies, transport disruption, public health events, attrition or sudden changes in business demand.
The appropriate response depends on the work. Some functions can operate remotely, while others require secure facilities, specialised equipment or controlled environments.
A workforce continuity plan should establish:
- Which roles are essential during a disruption
- Whether employees can work from an alternative location
- What equipment and secure access they require
- How managers will communicate with teams
- How workload will be prioritised
- What happens if key employees are unavailable
Remote work should not be assumed to be suitable for every role. Security, contractual obligations, data handling requirements and operational needs must be considered.
6. Assess workspace and location risks
The office is part of the GCC’s operating infrastructure. Its suitability should be assessed in terms of connectivity, building reliability, physical security, accessibility and the ability to accommodate the planned workforce.
Before selecting a location, review the availability of backup power and connectivity where required, access-control arrangements, emergency procedures and the workspace provider’s responsibilities.
Contract terms should be reviewed for service obligations, maintenance responsibilities, access arrangements, notice periods and the consequences of disruption.
Workspace flexibility can also affect resilience. A company with uncertain hiring requirements may prefer to avoid committing all future capacity to a single long-term arrangement before its operating needs are established.
For guidance on evaluating locations, read https://www.flexospaces.com/resources/how-to-choose-the-right-micro-market-for-your-gcc-in-india/.
7. Review vendors and third-party dependencies
GCCs may depend on external providers for workspace, connectivity, cloud services, recruitment, payroll or specialised technology.
Assess the importance of each provider and identify the consequences if its service becomes unavailable. Review contractual commitments, support arrangements, security responsibilities and available alternatives.
For critical suppliers, understand how they manage incidents and whether their recovery arrangements align with the GCC’s requirements.
Avoid concentrating every critical service with one provider without considering the operational consequences. Where practical, identify alternatives or contingency arrangements for essential services.
8. Create and test a business continuity plan
A business continuity plan should explain how the GCC will maintain or restore critical operations during a disruption.
At a minimum, document:
- The services that must be maintained or restored first.
- The maximum acceptable interruption for each critical activity.
- The people responsible for activating the plan.
- Alternative work arrangements and required resources.
- Communication procedures for employees and global stakeholders.
- Recovery steps for essential technology and processes.
- Conditions for returning to normal operations.
Recovery time objectives and recovery point objectives should be defined with the teams responsible for the relevant systems and data. They should reflect business requirements rather than arbitrary targets.
Test the plan through tabletop exercises or realistic simulations. Record the gaps identified, assign corrective actions and repeat the exercise after major changes to the workforce, technology or workspace.
9. Review risk as the GCC grows
A risk assessment created during launch may become outdated as the centre adds new functions, employees, vendors and locations.
Review risks when the GCC expands into a new business area, begins handling more sensitive data, changes its workspace model or becomes responsible for a critical global process.
A regular review should also assess whether previous incidents have led to lasting improvements. Repeatedly documenting the same problem without resolving its underlying cause is not effective risk management.
Frequently asked questions
Does a small GCC need a formal risk management plan?
Yes. The plan can be proportionate to the centre’s size, but responsibilities, incident reporting and recovery arrangements should be clear from the beginning.
Who is responsible for business continuity?
Responsibility is shared across local leadership and the global teams that own critical business processes, technology, security and facilities. The plan should name accountable owners.
How often should a GCC test its continuity plan?
Testing frequency should reflect the importance of the services, the level of risk and applicable organisational requirements. Plans should also be retested after significant operational changes or major gaps are identified.
Can flexible workspace improve business continuity?
Flexible workspace may provide additional options for capacity or alternative locations, but it does not guarantee continuity. Companies must assess connectivity, security, contractual terms and operational suitability.
Conclusion
Risk management helps GCCs protect delivery, employees, data and business continuity as their responsibilities grow. A practical approach combines clear ownership, documented procedures, technology safeguards, workspace assessment and regular testing.
The most effective plans are specific to the centre’s activities and are updated as the operation changes. Business continuity should be treated as an ongoing management responsibility rather than a document prepared only for launch.
