COPO Model Adoption To Surge 25% By 2030

New Delhi: The Company Owned Partner Operated (COPO) model is being utilised increasingly and is projected to increase by 25 per cent by 2030, driving India’s overall $105 billion Global Capability Center (GCC) growth, according to Inductus report.

The uptick of the COPO model is driven by its capacity to simplify operations while ensuring strategic ownership.

The combination of corporate ownership and local knowledge ensures that international businesses can quickly adapt to the Indian market while sustaining long-term growth, it said. COPO model adoption is set to surge by 25 per cent by 2030, driving India’s $105 billion GCC growth, Inductus report said noting the model has been a “game-changer” for India’s GCC space.

“With the ecosystem shifting towards experiencing over 3,000 GCCs by 2030 and attaining a market size of $105 billion, the COPO model is setting new benchmarks for asset management, responsiveness to markets, risk evasion, and scalability,” it said. Citing surveys, the Inductus report claimed that companies adopting the COPO model have experienced an improvement in proprietary process control, with 94 per cent of firms improving their control over intellectual property compared to the conventional outsourcing models.

This structure has also minimised capital spending by 80 per cent over five years, enabling companies to function more effectively at a lower cost. With the GCC ecosystem spreading into Tier-II and Tier-III cities, scalability has emerged as one of the major strengths of the COPO model. “The growth is fuelled by the COPO model’s proven capability to shave compliance delays by 65 per cent, achieve talent retention with less than 6 per cent attrition rates, and minimise market volatility risk by 40 per cent,” the report estimated.

Further, companies embracing the COPO model experience a 37 per cent reduction in legal and tax obligations, underlining the worth of the model as a risk-hedged strategy for doing business in India.