counteract trade barriers and tariffs in the USA 

With Donald Trump's renewed presidency, a further tightening of local content and "Buy American" requirements is to be expected. This could mean that companies that do not produce locally or otherwise contribute to local value creation will be increasingly burdened by punitive tariffs or other trade barriers. 

For European (and Indian) companies, it makes sense to establish strategically important business areas directly in the USA in order to meet local content requirements. In this context, the establishment of creative and technical functions, such as IT competence centers or R&D hubs, could be an effective approach not only to meet compliance but also to create long-term synergies. A model in which a GCC (Global Competence Center) in the USA with a GCC (Global Capability Center) in India could actually offer decisive advantages [Link to blog article GCC]: 

  1. risk mitigation: Geographical and regulatory diversification not only enables companies to secure access to the US market, but also to better manage potential risks in a politically challenging environment. 
  1. Optimized value chain: By distributing IT and creative services between the US and India, companies can build a global value chain that pools expertise at both locations and reduces costs. 
  1. promoting innovation potential: Creative and technological hubs in the USA can not only be relevant for the local market, but can also drive innovation processes globally through connections with Indian GCCs. 

We know India and work from and to the USA. We build Global Capability Centers with you and support you in your strategic considerations. Please feel free to contact us without obligation. We look forward to hearing from you.