The GCC Paradox: How Upskilling in India Could Blow Up Your Tax Strategy
The operational evolution of your India GCC is a major victory, but it could trigger a quiet, highly punitive tax risk
Strategic North insight series | October 2026
Indian Global Capability Centers (GCCs) are rapidly climbing the value chain, shifting from task executors to strategic leaders. While this operational evolution is a massive victory, it triggers a quiet, highly punitive tax risk that could decimate your projected cost savings.
India's GCCs have fueled global corporate development for over a decade. However, as these centers expand their capabilities, they create severe transfer pricing risks that could increase Indian taxes eroding (or in extreme cases, eliminate) the cost savings otherwise generated by the GCC.
As GCC personnel take on product ownership, portfolio management, budget control, and other strategic responsibilities, organizations need to consider whether their evolving operating model remains aligned with their transfer pricing and tax framework.
Dive into our thinking:
The GCC Paradox: How Upskilling in India Could Blow Up Your Tax Strategy
Download PDFThe Bottom Line
The evolution of the Indian GCC from a cost center to an innovation engine is a testament to the country’s incredible talent. As GCCs take on more strategic roles, aligning operational growth with tax strategy can help organizations protect anticipated savings and sustain long-term value. A coordinated operating model, digital value chain, and tax framework can help support continued innovation while appropriately managing transfer pricing considerations.
Monday Morning Audit
As you assess how your GCC is evolving, ask your leadership team these three questions tomorrow morning:
In what ways is your GCC taking on more strategic roles, owning budgets, product and domain ownership, and managing pipelines?
How deeply (and regularly) has your tax team been involved in understanding the ways of work, responsibilities and authorities of the GCC?
What are you doing to identify and manage the potential adverse tax consequences of your evolving GCC?
Strategic North
This series explores the critical intersection of operations, technology, and financial strategy. Our goal is simple: to help ensure that every journey you take, big or small, moves your organization closer to its Strategic North.
Paul Glunt is a Principal who leads the KPMG LLP Value Chain Management practice, advising C-suite leaders on the financial and operational mechanics of digital transformation. He specializes in architecting self-funding IT organizations, digital COEs, and global operating models that turn technology investments into sustainable cash flow. Paul bridges the critical gap between tax objectives and IT execution, helping to ensure that every digital journey is financially focused and firmly anchored to a company’s Strategic North.
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