Why Nordic Banks Don’t (Yet) Need GCCs in India – And Why That Might Change Sooner Than They Think 

 

It’s easy to look at global trends and feel a little FOMO—fear of missing out. Nordic manufacturers have long embraced India for production and sourcing, and European banks from Germany, the UK, and France are setting up Global Capability Centres (GCCs) like it’s the latest must-have accessory. But Nordic banks? They’re sipping their coffee, observing the frenzy, and thinking, “Do we really need to jump on this bandwagon?” 

 

Let’s break it down, with a dash of humor, as we explore why Nordic banks are holding back—and why they might need to rethink that strategy. 

1. “Everyone Else Is Doing It” Is Not a Strategy 

Just because everyone is setting up a GCC doesn’t mean Nordic banks should. Remember your mother’s classic line: “If your friends jumped off a cliff, would you do it too?” That’s pretty much the Nordic banking philosophy when it comes to India. 

 

German and British banks are scaling up GCCs, driven by the allure of lower costs, a vast talent pool, and high scalability. But Nordic banks? They’re fine outsourcing much of their IT and operational needs to reliable partners like TCS, Capgemini, Infosys or even their homegrown hero, TietoEVRY. Why set up a full-fledged GCC when you can simply pay someone else to do the hard work? 

 

Outsourcing is the classic “rent vs. buy” argument: 

a. Why build your own house (GCC) 

b. When you can rent a luxury villa (trusted outsourcing partners)? 

 

And hey, that luxury villa even comes with tech support, compliance experts, and a chai wallah!

 

2. It’s Not (Just) About the Money 

India offers cost savings—that’s no secret. But for Nordic banks, the GCC game isn’t just about cutting costs. It’s about maintaining personalized, high-touch service with a reputation for trust and security. 

 

Manufacturers can scale production lines and reap rewards from volume. Banking? Not so much. You can’t “mass produce” trust. Nordic banks pride themselves on bespoke customer experiences and stringent compliance, and moving operations too far away raises concerns about losing control. Regulatory issues are like assembling IKEA furniture—every little piece matters, and losing one can turn your balance sheet into a nightmare. 

 

3. Culture Fit: Avoiding Time Zone and Tone-of-Voice Snafus 

One traditional argument against setting up GCCs in India is the cultural and time zone gap. Nordic work culture favors flat hierarchies and direct communication, while Indian corporate style was historically seen as polite and deferential, leading to occasional misunderstandings. However, this belongs in the past. 

 

India’s corporate communication has transformed significantly with globalization and world-class training. Today, Indian professionals are clearer with timelines, quicker to escalate issues, and more proactive in aligning deliverables. Technology has further erased time zone barriers through asynchronous tools like Slack, Teams, and real-time dashboards, making global collaboration seamless. 

 

While manufacturing thrives on defined processes, banking requires real-time collaboration and trust—both of which India’s highly skilled workforce manages expertly. The real question is no longer about cultural gaps—it’s about harnessing the best talent where it exists. Nordic banks excel in relationship management, and Indian teams offer a potent mix of expertise and clarity. Together, they can drive innovation, efficiency, and superior service. 

 

4. Eastern Europe: The GCC Next Door 

For now, Nordic banks have a secret weapon—Eastern Europe. Poland, Lithuania, Latvia—they offer skilled talent, cultural proximity, and time zones that don’t require midnight meetings. It’s a cozy “nearshore” solution that keeps things manageable. 

 

Other European banks, dealing with far larger customer bases and more complex operations, need India’s sheer scalability. Nordic banks, with their niche markets and focus on quality over quantity, have the luxury of picking smaller, closer locations. 

 

But here’s the catch: 

 

5. The Coming Talent Crunch and Why India Might Be Inevitable 

While outsourcing to TCS, Capgemini, Infosys and TietoEVRY is working fine for now, Europe’s talent market is shrinking. Skilled professionals in Eastern Europe are already being courted by tech giants and global players. The demand-supply imbalance is widening, and finding the right expertise will only get harder. 

 

India’s tech workforce, on the other hand, is growing—and it’s not just about quantity. India’s top-tier talent pool in AI, cybersecurity, and fintech innovation could become indispensable for Nordic banks looking to stay competitive. The next decade may force even the most cautious Nordic banks to reconsider. 

 

6. Regulatory and Compliance: The Elephant in the (Board) Room 

Nordic banks’ love-hate relationship with regulation is another reason they’ve held off on GCCs in India. But here’s a twist—India has been rapidly strengthening its regulatory frameworks, becoming a more compliance-friendly environment for global finance operations. If Europe’s data-protection and anti-money laundering standards can be mirrored in India, Nordic banks may find fewer excuses to avoid the leap. 

 

Conclusion: It’s Not About FOMO, It’s About Future-Proofing 

Nordic banks have been smart to take their time, but the world isn’t waiting. As skill shortages hit closer to home and India becomes more regulation-friendly, the case for setting up GCCs will only grow stronger. It’s not about following the crowd—it’s about future-proofing your operations with scalable talent and innovative solutions. 

 

So, dear Nordic banks, the next time someone says, “But everyone else is doing it,” remember: 

Sometimes, it’s okay to be cautious. 

But sometimes, the bandwagon is headed somewhere worth exploring. 

And India? It’s a pretty exciting destination.