Why GCCs Are Becoming the Preferred Alternative to Outsourcing
Over the past decade, U.S. companies largely relied on offshore vendors to manage engineering capacity. That’s changing fast. As the gap between demand and skilled talent widens, enterprises are re-evaluating in-house vs outsourcing and discovering a third, more stable option: Global Capability Centers. The outsourcing model still delivers fast scaling, but the pain points are becoming more visible. Vendor churn disrupts continuity, quality varies from project to project, and hidden fees—travel, change orders, additional QA cycles—inflate long-term costs. A single miscommunication across time zones can slow entire sprints. In-house hiring offers control and reliability, yet the economics are now unsustainable for many firms. With U.S. comp packages climbing toward $180,000 per engineer, even well-funded companies struggle to staff large teams. Beyond salary, office expansion, HR compliance, and infrastructure make scaling even slower. GCCs solve this. A GCC is a fully owned e...