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Potential impact on the GBS market: GBS encompass a wide array of activities, including IT services, back-office operations, finance and accounting, HR services, and more. Indian transfer pricing regulations mandate that such transactions be conducted at arm’s length prices to prevent profit shifting.
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Specifically, these centers enable companies to centralize multiple functions like IT, finance, customer service, and back-office operations in strategic international locations. Undeniably, t his proximity allows for real-time collaboration, minimal travel disruptions, and faster project management cycles.
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