What’s in the report?

The world is in a state of flux as key factors driving decisions are changing every day – an impending recession, the resultant economic slowdown, geopolitical tensions, etc. But what remains unwavering is the demand for skilled digital talent. As companies deal with the dichotomy of layoffs on one hand and shortage of skilled professionals on the other, talent stands at the core of creating a defensible moat against these dynamic disruptions. And companies want to gain access to top-notch talent to de-risk their business and accelerate their innovation and digitalization initiatives. Hence, Globalization has become the go-to strategy to address these challenges.

Companies are also looking to set up Global Capability Centers (GCCs) or Captive Centers as they were formerly called, as more and more enterprises are insourcing multiple IT functions. A recent Zinnov survey revealed that 77% of the companies insourced previously outsourced IT functions. But why? Insourcing provides control over processes, quality, and IP, while also helping increase speed and agility, and improving customer service. Moreover, newer talent hotspots provide the opportunity to engage with fresh global talent, ensuring scalability and flexibility for companies. This is especially true when companies are driving multi-location strategies such as digital transformation, innovation, and Intelligent Automation.

With multiple talent hotspots across the world for companies to build scalable and flexible GCCs, which are the top 5 destinations where all parameters converge to create conducive ecosystems? Which of the hotspots have the capacity to house 100- and 1000-member software engineering teams? This report unveils these nuances and how companies can leverage the insights from this report to outline and optimize their globalization strategies.


Global Software Engineering Talent availability and cost

Source: DRAUP, Zinnov Primary Research Ongoing political tensions inEurope have led to talentmigration within the continent,as companies have moved theiremployees from Bulgaria andBelarus to countries like PolandUS political situation andCanadian government's newpolicy on "GlobalTalent stream" have led tomigration of skilled workers,which enables them to obtainwork permit within two weeks

Why download this report?

Get insights on top locations to build world class GCCs where you can:

  • Build scalable, full Software Product Engineering teams
  • Leverage a mature ecosystem of dynamic start-ups, Service Providers, and universities
  • Benefit from high ease of doing business
  • Build teams at affordable costs

To get access to the full report, please drop us a note at info@zinnov.com

Zinnov evaluated the 17 identified countries based on the following 4 parameters:

  • Talent Availability
  • Software Engineering Ecosystem Maturity
  • Ease of Doing Business
  • Cost Analysis

While all 17 countries in this analysis have proven software engineering capability, in terms of building scalable GCCs, India, Canada, China, Poland, and Mexico are the Top 5 Talent Hotspots of the World.

Center Of Excellence Hotspots - Romania
Center Of Excellence Hotspots - Estonia
Center Of Excellence Hotspots - Lithuania
Center Of Excellence Hotspots - Bulgaria
Center Of Excellence Hotspots - Belarus
Center Of Excellence Hotspots - Czechia
Center Of Excellence Hotspots - Poland
Center Of Excellence Hotspots - Philippines
Center Of Excellence Hotspots - China
Center Of Excellence Hotspots - India
Center Of Excellence Hotspots - Canada
Center Of Excellence Hotspots - Mexico
Center Of Excellence Hotspots - Brazil
Center Of Excellence Hotspots - Vietnam
Center Of Excellence Hotspots - Costa Rica
Center Of Excellence Hotspots - Brazil
Center Of Excellence Hotspots - Vietnam

Country Ranking based on their potential to house fully scalable Software Engineering teams

Country wise Rankings of Center Of Excellence Hotspots Source: Zinnov Reports, Zinnov Secondary Research

To accelerate your organization’s growth and innovation journey, while bringing in higher efficiencies and productivity, you need access to the best global talent. We can help you establish high-performing Global Capability Centers with top-notch infrastructure, high impact HR policies, and a partner ecosystem that is conducive for innovation.

For more details about working with us, drop us a note at info@zinnov.com and we will get in touch with you.

Key Insights From The Report

  • Global talent hotspots where companies can build scalable and full Software Product Engineering teams, have a mature technology ecosystem with a high ease of doing business, and enable building teams at affordable costs.
  • Certain global trends such as a dispersed workforce in the wake of the pandemic, the talent dichotomy that companies are grappling with, and geopolitical tensions in Eastern Europe, have necessitated a multi-hub strategy to de-risk businesses and ensure business continuity.
  • A comparative analysis of a 100-member Software Product Engineering team that houses key roles in each of the identified 17 countries, relative to costs in the US, provides a comprehensive view of countries where teams can be scaled easily.
  • Strong ecosystem collaboration between existing GCCs, and with local start-ups (including unicorns), Service Providers, and academia, make for a compelling case for global companies to continue to leverage these global hotspots.
  • This in-depth analysis of the 17 identified countries across North America, Latin America, Central and Eastern Europe, and Asia Pacific and key parameters, empowers CXOs and decision makers to build full, scalable, high-performing teams within new GCCs.

Report Authors and Contributors

Nilesh Thakker

Nilesh Thakker

Managing Partner & Global Head
Amita Goyal

Amita Goyal

Partner & Head of GCC Practice
Ankit Mishra

Ankit Mishra

Engagement Manager
Aditya Raj

Aditya Raj

Project Lead
Ranodeep Shome

Ranodeep Shome




A Center of Excellence (COE) is defined as a body in an organization that has leading-edge knowledge and competency in a particular area and is comprised of highly skilled individuals and experts.

Zinnov evaluated 17 countries across North America, Latin America, Central and Eastern Europe, and Asia Pacific to narrow down the COE hotspots of the world. Of these, 4 countries are emerging hotspots, while the rest are established global hotspots.

The insights and analyses from this report will benefit key stakeholders and decision makers such as CXOs, Strategy, Operations, and HR leaders from global MNCs; Operating Partners at Private Equity firms.

We have selected the 17 countries based on the fact that all of them show high potential to house software engineering teams. Zinnov’s extensive experience of working with global technology organizations, PE firms, and Technology Service Providers, uniquely positions us to evaluate key aspects such as the presence of significant talent pool, ecosystem maturity, affordable costs, and ease of doing business in terms of geopolitical stability, English proficiency, and IP and Data Privacy – that make any country a global talent hotspot.

Organizations set up global COEs or GCCs to –

  • De-risk business
  • Initiate transformative change in the organization in a scalable and sustainable manner
  • Provide visibility, focus, and establish commitment to innovation
  • Provide flexibility to innovate fast and fail fast

An organization can measure the success of their COE by measuring –

  • The expertise showcased by a COE – Relevant, Deep, and Unique (IP worthy, PoC generated) expertise
  • Its ability to impact the organization by shaping its business vision and technology roadmap and/or by helping the organization fill the skill gap/market gap to achieve the outlined broader organizational vision
  • Its ability to generate economic value for HQ and drive product ownership and technology leadership

Here are the top key levers to build successful Centers of Excellence:

  • A well-defined vision with strong executive sponsorship
  • Selecting the right location with a strong external ecosystem
  • Skill availability and other key parameters discussed in this report
  • Creating an organization structure that empowers the COE to take up ownership and hence sets it up for success</li
  • Building a strong Talent Strategy
  • Well-defined governance and operating model
  • Prioritizing the right use cases and problems to solve for
  • Fostering meaningful partnerships with start-ups, academia, and other companies in the ecosystem

An effective COE must have the following attributes in order to drive high-impact value and ROI –

  • High engineering maturity
  • Clearly defined center persona
  • Top-notch talent attraction and retention strategy
  • Strong partnerships with the external ecosystem
  • Visionary leader to drive innovation

Speak to our consultants for more details

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