Evolution of Global Capability Centres (GCCs): Delivery Centres to Innovation Powerhouses?

GCCs have evolved from low-cost outsourcing hubs to local offices of multinational companies (MNCs) supporting their parent organizations in multiple functions, including business operations, finance, Innovation, research and development. GCCs also have matured into full-blown innovation hubs, driving breakthroughs in emerging technologies like AI, Quantum and Cybersecurity.

India, as a case in point, now hosts over 1,700 GCCs as of FY24, generating $64.6 billion in revenue, up from $46 billion in FY23—a 40% increase. By 2030, the number of GCCs in India is expected to reach between 2,100 and 2,200, generating up to $105 billion in revenue and employing as many as 2.8 million people. While India remains a dominant player in this space, this shift is not limited to one region or industry. From financial services to healthcare, manufacturing, and beyond, GCCs are taking on increasingly critical roles in driving global business growth, innovation, and sustainability.

As GCCs mature and move up the value chain, they will transition from technology and business hubs to integrated business accelerators delivering value. This evolution necessitates a differentiated talent strategy where recruitment focuses on individuals with a diverse skill set, including a blend of technical expertise, leadership skills, business acumen, and strategic thinking.

• ‘Digital Twins’ of Headquarters: GCCs will evolve into seamless extensions of their headquarters, functioning as digital twins that mirror operations in real time. Utilizing advanced data analytics, digital tools, and cloud technologies, they can create interconnected ecosystems that enhance decision-making, collaboration, and alignment across borders. This unified approach will foster a shared culture, solidifying GCCs as integral components of global strategy.

• Hotbeds for New and Disruptive Technologies: GCCs are emerging as testing grounds for disruptive technologies. Nearly 90% of GCC leaders plan to adopt AI/ML in the next 2-3 years. This makes GCCs critical to their parent organizations' technological advancements. Recent data reveals that around 40% of the GCCs set up in the last two years in India are global R&D/Innovation centres.

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• Increased Collaboration with Startups: GCCs are partnering with startups to boost innovation, combining agility with industry expertise. This collaboration accelerates innovation cycles and enhances scalability, particularly in regions like India, which has the world's third-largest startup ecosystem. These partnerships are set to redefine how GCCs and startups drive collective growth and technological advancement.

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• GCCs now take on global roles, with over 6,500 senior positions established in India alone, including 1,100+ women in leadership. As the number of centres continues to grow (projected to reach 2,100–2,200 by 2030), the focus is on creating global hubs of innovation, with many GCCs moving into transformation hub maturity.

While India has historically been a prime location for GCCs, many multinational corporations are expanding their operations to other regions as well. This diversification is driven by factors such as talent availability, cost considerations, and strategic geographic positioning. APAC- Philippines and Indonesia, Europe - Poland, Romania & Hungary, NA - Canada & Mexico to name a few.