Evolving GCCs in India: From Capabilities to Strategic Value Driver

Global Capability Centers (GCCs) in India have come a long way from being mere cost-saving units. With over 1,700+ GCCs employing more than 1.5 million professionals. They are transforming into strategic partners that contribute significantly to business growth and innovation. This shift demands deliberate changes in operating model, evaluate talent investment, and strong collaboration with global leadership.

Eye-level view of a modern office building in an Indian tech park — Modern tech park housing GCCs

The Changing Role of GCCs in India

Initially, GCCs were set up primarily to reduce operational costs by outsourcing back-office functions and IT services. Over time, these centers expanded their scope to include more complex tasks such as Operations, R&D and customer experience. However, GCCs need to evolve as strategic value drivers: innovation hubs and AI-native engines for Product and Customer experience (CX) innovation.

This evolution is fueled by several factors:

AI Transformation: Businesses worldwide are adopting Agentic AI, automation, and cloud, creating new opportunities for GCCs.
Group Strategy: Global companies are recognizing the value of GCCs beyond cost savings and investing in their growth.

Roadmap for GCCs: Shift from efficiency, Innovation to Strategic Value Driver

GCCs in India are shifting their focus from cost & efficiency enhancer to strategic value drivers.

The categorization is based on strategic relevance and business value added, provides a diagnostic tool to assess current state and the evolution roadmap.

By focusing on strategic relevance and business value addition, GCC leaders can make informed decisions about investments, talent strategies, and stakeholder engagement to build thriving hubs.

GCCs as a Strategic Value Hub

India’s GCCs are no longer just cost centers; they are becoming strategic hubs that contribute to global innovation and competitive advantage. This shift is visible in several ways:

Build AI-Native Enterprise: Integrating AI into core operations to develop new products, improve services, and generate revenue.
Product Innovation: GCCs are involved in designing and launching new products tailored for global markets.
Outcome Focused: They lead efforts to streamline operations using automation and efficiency.
Revenue generation: By creating new services, products and solutions, GCCs directly impact the company’s top line.

High angle view of a collaborative workspace with diverse professionals brainstorming — Collaborative workspace in an Indian GCC focused on innovation

Steps to Evolve GCCs into Strategic Partners

To make this transformation, companies need to take several practical steps:

Align GCC goals with business strategy: Ensure that GCC objectives support overall company priorities.
Invest in talent development: Provide continuous learning opportunities in AI, data science, and emerging technologies.
Encourage innovation culture: Create an environment where experimentation and risk-taking are rewarded.
Strengthen leadership engagement: Global leaders must actively support GCC initiatives and recognize their strategic role.
Leverage partnerships: Collaborate with startups, academic institutions, and technology vendors to access new ideas and skills.

Challenges and How to Overcome Them

The journey from cost center to strategic partner is not without challenges. Some common obstacles include:

Resistance to change: Employees and leaders may be hesitant to adopt new roles and technologies.
Skill gaps: Finding and retaining AI and data science talent can be difficult.
Integration issues: Aligning GCC outputs with global business units requires effective communication and coordination.

Addressing these challenges requires clear strategic alignment on roadmap, strong leadership & change management, and a focus on building future enterprise.

The Road Ahead

Global companies are recognizing the value of GCCs beyond cost savings and investing in their growth. India’s GCCs are poised to play a critical role in the global business ecosystem. By embracing AI and innovation, they can move beyond cost savings to become engines of growth and competitive advantage. Companies that succeed will benefit from a strategic value generation hub capable of delivering new products, services, and insights on a global scale. For businesses with GCCs in India, the time to act is now.