Rationale, implementation challenges and success factors for establishing GCCs - Global Capability Centers (Captives)

Since the establishment of the first Captive (aka GCC, or Global Capability Centre) in 1985 by Texas Instruments, the business model of establishing own subsidiaries to include an insourcing strategy by overseas companies has been gathering pace. Between 2010 and 2020/21 nearly 700 such GCCs were established bringing the total to around 1400. By 2024-25, NASSCOM (National Association of Software Companies) estimates there will be between 1800 and 2000 GCCs.
It is estimated that between 20% and 25% of Fortune 1000 companies have already adopted this strategy. Being a rapidly proliferating contemporary trend, it is of interest to understand the rationale behind companies adopting this strategy, while keeping in view that there are still many companies that can potentially set up their captives while learning from the examples of those that have already done so.
The proposed research therefore seeks answers to the following: Why are overseas companies setting up GCCs? What new tensions/challenges does this create for the parent company and how do they define success? What processes enable the successful establishment and continuation of the GCC as an integral part of the value delivery mechanism