Best Locations to Set Up Global Captive Centers in 2025

New recruitment trends like the great reshuffle from the pandemic and post-pandemic era have proven to be an epiphany for companies on the global talent problem. Companies needed to redefine their talent strategy to not only obtain but also retain employees in order to remain afloat and ahead. In many scenarios, teams across the globe confront a lack of reliable, long-term talent and steady declines in team sizes.

As enterprises’ demand for skilled manpower continues to soar due to digital transformation, organizations need more sustainable and scalable workforce solutions to mitigate the talent challenge. Amid rapid digital transformation, companies are now taking note of more sustainable and scalable solutions to solving this problem.

An effective strategy to combat this is to set up a global capability center, which ensures de-risking of business as well as steady innovation. A Global Captive Center (GCC) is a business unit that is owned and operated by a parent company, in a different country. GCCs are often set up to take advantage of lower labor costs, access to skilled talent, or proximity to key markets. An enterprise, through setting up GCCs, can expand its horizons and can be known as a global business services provider organization with an international landmark.

Key Considerations for Selecting the Best Locations for Captive Centers in 2025

Identification of these countries is premised on certain factors such as Ease of Doing Business, Tax Implications, Availability of Skilled Talent, Regulatory System, Cost of Living, and Cost of Center Setup. The key parameters are shared below:

Cost: One of the most deciding factors during the setup of a GCC is cost implications. Over time, when the scale and the demand for specialized functions start rising, the business overhead needs constant monitoring and adjusting. Setting up a capability center in a low-cost location ushers in a range of cost-saving benefits. From labor arbitrage to efficient operational expenses, certain geographies have become offshore business hubs due to their reputation for cost optimization.

Ecosystem Compatibility

The second factor that must be considered is ecosystem maturity and compatibility. The robustness and efficiency of a business ecosystem play a crucial role in talent availability and growth for an organization. The existing landscape should be frictionless to operate businesses in—an ecosystem with vibrant technology start-ups, business units working with horizontal and vertical integration, a dynamic service provider community, and a higher number of universities and research institutes to further the skill levels across different roles.

Ease of Doing Business

Ease of Doing Business is another important facet that shapes the future of a capability center. Critical factors that a company needs to evaluate before choosing a location to set up its global center are geopolitical stability, security threat assessment, IP and data privacy index, cybersecurity index, tax implications, global language proficiency, easy access to amenities and infrastructure, and favorable regulations by the government.

Talent Availability

An abundance of talent plays a vital role in drawing multinational businesses to overseas locations. A common means to save recruitment and retention costs without cutting corners in quality and capability, GCCs usually pay significant attention to the availability of skilled talent for their expansion strategies. Talent availability depends on certain external factors, including research maturity, education quality of academia, the zeal of people to learn, the overall technology and regulatory landscape, and whether people have access to the right resources for learning.

Emerging Markets and Hybrid Work Models

Considering emerging markets like Vietnam, the Philippines, and Eastern European nations can open doors to untapped potential and cost advantages. These regions are rapidly developing their ecosystems and workforce capabilities, making them promising options for offshore business hubs. Additionally, the hybrid work model has transformed the way businesses operate globally. Companies should evaluate locations where hybrid work models can be seamlessly implemented to improve employee satisfaction and efficiency.

Top Locations for Global Captive Centers in 2025

India

India has been a popular choice for Global Captive Centers due to its large pool of skilled and English-speaking talent. India is home to quality talent with a globally connected population and an ecosystem that is mature and optimally functioning. India is also home to over 100 unicorns, inviting an influx of capital. The developing digital infrastructure of India is capable of handling global operations and addressing the global talent shortage challenge.

The cost of living and operations is relatively low in India, making it a cost-effective option. Additionally, the Indian government has a number of policies in place to support foreign investment, making it a favorable environment for setting up a captive center. As per recent reports, India remains a leading choice among the best locations for captive centers in 2025.

Why India?

• A large pool of skilled and English-speaking talent
• Favorable government policies and regulations
• Low cost of living and operations
• Excellent infrastructure and connectivity
• Strong history of success in the IT and BPO sectors

China

China is a well-known name in the global economy when it comes to setting up enterprise units and captive centers. Having a large pool of skilled talent gives it an edge as a favorable location for GCCs. Also, the cost of labor in China is relatively low, which can be a cost advantage for some businesses. However, enterprises must navigate the stiff and complex regulatory environment and geopolitical tensions that may arise.

Why China?

• Low cost of labor
• A large pool of skilled talent
• Advanced infrastructure and tech integration
• Time zone advantage with major markets

Canada

Canada’s highly skilled workforce and stable political and economic environment make it a favored choice for GCCs. The regulatory environment in Canada is transparent and predictable, which is a major advantage. The country’s proximity to the US also provides a cultural and logistical advantage.

Why Canada?

• Stable political and economic environment
• Transparent and supportive regulatory framework
• Highly skilled workforce with a strong STEM background
• Proximity to the United States

Poland

Poland is a rapidly growing economy with a highly skilled and affordable workforce. Its geographical advantage in Central Europe ensures excellent connectivity to other European markets. The government offers numerous incentives for foreign investments, making it a favorable location for GCCs.

Why Poland?

• Highly skilled and affordable workforce
• Strategic location in Central Europe
• Favorable government incentives for foreign investment
• Excellent connectivity to Western Europe

Mexico

Mexico’s strategic location in North America and proximity to the United States make it a great choice for GCCs. Its low cost of living and supportive government policies further enhance its attractiveness as one of the best locations for captive centers in 2025.

Why Mexico?

• Strategic location in North America
• Proximity to the United States
• Favorable tax rates and regulations
• Low cost of living and operations

Conclusion

In this blog, we have shared key considerations for choosing the best locations for captive centers in 2025. Whether leveraging emerging markets or optimizing hybrid work models, businesses have numerous options for setting up offshore business hubs.

When making your decision, it is important to carefully consider all of the factors involved, including the availability of skilled talent, the cost of labor and other operating expenses, the government’s policies and regulations, the infrastructure and connectivity in the location, the time zone difference between the location and home office, and the cultural fit between your organization and the local culture.

By carefully considering all of these factors, one can make the right decision about the best location for your next global capability center. Connect with the experts of staffing for more information and customized workforce solution offerings.

NLB Services helps organizations conceptualize and set up GCCs in India in a hassle-free way. NLB Services also helps already-entered companies to expand their business horizons across India. Visit our Global Business Services page and fill up the inquiry form for more information.

Harshal Goyal

Vice President, Talent Solutions- Staffing, RPO & Perm