Global Capability Centers: Driving Digital Transformation and AI Innovation in India

How technology will redefine GCC landscape in India

By Alouk Kumar India has long been a preferred destination for Global Capability Centers (GCCs), but the technological revolution is reshaping this landscape in unprecedented ways. As we look towards 2025 and beyond, emerging technologies are not just enhancing existing operations but fundamentally transforming how GCCs function and deliver value. Digital Innovation Hubs: Beyond Cost Arbitrage The transition of Indian GCCs from the traditional perspective that sees them as cheap offshore administrative providers is in full swing. Today, these centers are becoming hubs where artificial intelligence, machine learning and robotic process automation are developed. All big companies have redefined their Indian GCCs and moved them beyond merely performing operational functions, to developing cutting edge technologies. AI and Automation: A Catalyst to Change Work Structures The precise way in which GCCs perform their work in India is changing because of artificial intelligence. There is a noticeable trend of investing in automation and AI by GCCs. This transition is bringing about new positions, for instance in AI testing, data analysis and automation engineering. While some traditional roles may be replaced by automation, the trend appears to be generating some higher valued jobs which are technologically and qualitatively more demanding. Cloud Computing: Enabling Global Collaboration The cloud revolution has become a cornerstone of GCC operations in India. With major cloud service providers establishing regional data centers, GCCs are leveraging cloud infrastructure to enhance scalability and efficiency. This technological backbone enables seamless collaboration across global teams and provides the computing power needed for advanced analytics and AI applications. Cybersecurity and Data Protection As GCCs handle increasingly sensitive data and intellectual property, cybersecurity has become paramount. The implementation of sophisticated security frameworks and compliance with global data protection regulations has positioned Indian GCCs as trusted partners for handling critical business operations. Companies are investing in advanced security technologies and building dedicated cybersecurity teams within their GCCs. Internet of Things (IoT) and Edge Computing The rise of IoT applications is opening new avenues for GCCs. Centers focusing on industrial automation, smart manufacturing, and connected devices are establishing specialized IoT labs. Edge computing capabilities are being developed to process data closer to the source, enabling real-time decision-making and reducing latency in critical applications. Talent and Skill Development The technological transformation is driving a massive upskilling initiative across GCCs. Organizations are partnering with educational institutions and technology providers to develop specialized training programs. The focus is on building capabilities in emerging technologies while maintaining India's competitive advantage in software development and engineering. Challenges and Opportunities While the technological transformation presents immense opportunities, it also brings challenges. GCCs must navigate issues such as: - The need for continuous upskilling of the workforce - Managing cybersecurity risks in an increasingly connected environment - Balancing automation with human expertise - Keeping pace with rapidly evolving technology landscapes Future Outlook The future of GCCs in India looks promising, with technology acting as the primary catalyst for growth. The focus will increasingly shift towards: - Development of intellectual property and patents - Creation of innovative solutions for global markets - Integration of sustainable technologies and green computing - Enhancement of digital customer experience capabilities As India's GCC sector embraces these technological changes, it is positioning itself not just as a service provider but as a strategic partner in global digital transformation. The integration of advanced technologies is creating a more robust, innovative, and value-driven GCC ecosystem that will continue to attract global investments and drive technological advancement in the years to come. (The author is Alouk Kumar, Founder & CEO, Inductus, and the views expressed in this article are his own)

The Rise of Global Capability Centers: Transforming Business Operations in the Digital Era

By Suchita Vishoni Global Capability Centers (GCCs) have emerged as transformative hubs driving innovation, operational excellence, and digital transformation for multinational corporations. Once viewed as cost-saving offshore units, modern GCCs now serve as strategic nerve centers that integrate cutting-edge technologies, global talent, and scalable processes to redefine business operations. Today, over 60% of global enterprises rely on GCCs to accelerate digital initiatives, having reduced operational costs by nearly 30%, and fostering innovation through AI and automation. This shift reflects a broader trend where businesses prioritize agility, technological adoption, and sustainable growth in an increasingly competitive digital landscape. Redefining Value The evolution of GCCs marks a paradigm shift in global business strategy. Initially established as shared service centers to streamline back-office functions like finance and IT, GCCs have transitioned into innovation engines. For example, companies like 3M and 7-Eleven have positioned their Indian GCCs as extensions of their core R&D teams, focusing on digital transformation and advanced material sciences. This strategic pivot is driven by the need to harness specialized talent pools in regions like India, where over 50% of the world's GCCs now operate. Modern GCCs leverage technologies such as robotic process automation (RPA), artificial intelligence (AI), and machine learning (ML) to transcend traditional operational roles. About 60% people found that automation of repetitive tasks has reduced manual errors, while AI-driven analytics enable predictive maintenance and real-time decision-making. For instance, GCCs at firms like BlackRock and TransUnion now deploy generative AI to optimize investment strategies and enhance customer data security, transforming these centers into incubators for next-generation solutions. Accelerating Growth Digital transformation lies at the core of GCCs' value proposition. By centralizing technological expertise, these hubs enable organizations to adopt emerging tools at scale. GCCs are also instrumental in implementing Industry 4.0 technologies, including IoT, blockchain, and cloud computing. For example, automotive GCCs can utilize IoT-enabled predictive analytics to optimize supply chains, reducing downtime significantly. Similarly, financial service GCCs can employ blockchain to enhance transaction security and compliance, mitigating risks in cross-border operations. These initiatives not only improve operational resilience but also align with global sustainability goals by minimizing resource waste. Operational efficiency remains a cornerstone of GCC success. By consolidating functions such as HR, finance, and customer service, organizations achieve standardization across geographies, reducing redundancies and improving process accuracy. The geographical distribution of GCCs enables round-the-clock operations. A U.S.-based firm's GCC in Hyderabad can process data during off-hours, ensuring continuous innovation cycles and faster time-to-market. This model is particularly beneficial in sectors like healthcare and e-commerce, where real-time data processing and customer support are crucial. Beyond making operations more efficient, GCCs have also been reshaping labor markets and urban infrastructure in emerging economies. India's Tier-1 cities, including Bengaluru and Hyderabad, host over 240 million square feet of GCC office space, driven by demand for skilled professionals in AI, cybersecurity, and data analytics. GCCs invest heavily in workforce development, bridging skill gaps through partnerships with local universities and training programs. This focus on capability-building has elevated GCCs from task executors to strategic partners, with 70% now integrating business and tech functions to drive cohesive strategies. The Way Ahead Despite their transformative impact, GCCs face challenges such as geopolitical risks, data security concerns, and the need for rapid technological adoption. At the same time, there is an unprecedented rise in demand for digital infrastructure and cybersecurity investments, intensified by the shift to hybrid work models post-pandemic. To meet these demands, leading GCCs are exploring generative AI to automate complex tasks like code development and regulatory compliance. Furthermore, the rise of "GCC 2.0" model lays great stress on decentralized decision-making, where regional hubs autonomously drive initiatives tailored to local markets. Representing a seismic shift in how businesses operate and compete, GCCs are spearheading a shift in business operations by merging technological prowess with operational agility. Enabling organizations to navigate digital disruption while maintaining cost efficiency, these hubs are evolving into centers of excellence, thanks to their ability to harness AI, cultivate talent, and drive sustainable innovation will determine their long-term impact. For enterprises seeking global relevance, investing in GCCs is no longer optional; it is imperative for survival in the digital age. (The author is Suchita Vishoni Co-founder and CMO, GatewAI, and the views expressed in this article are her own)