The Rise of GCCs as Innovation Hubs: How AI and Automation Are Reshaping Global Business – Deepak Malkani, Co-founder, IndusGuru

This article is Authored by Deepak Malkani, Co-founder of IndusGuru, explores how technology is transforming global capability centers into engines of innovation.

Global Capability Centres (GCCs) – formerly known as Global In‑house Centres or GICs – were once offshore units focused on cost-effective back‑office functions such as transaction processing and IT support. Over the past two decades, GCCs have undergone a remarkable evolution. What began as centres for labour arbitrage are now emerging as forward‑looking hubs driving innovation, advanced analytics, and enterprise‑level transformations.

A Shift in Purpose

When GCCs first emerged in India and other developing economies, their focus was largely on executing routine processes more affordably. But global business needs have changed. With rapid digitisation, companies need more than just efficiency – they need agility, innovation, and technical depth. This has turned the spotlight back on GCCs, now expected to drive emerging tech adoption, lead automation programs, and contribute to core business value.

Today, some of the most advanced GCCs are working on building AI models, designing customer journeys, developing cybersecurity protocols, and even creating intellectual property. In sectors like financial services, healthcare, and life sciences, GCCs are shaping the way digital products are built and deployed across global markets.

The Role of AI and Automation

A key driver behind the transformation of GCCs is the growing influence of artificial intelligence, automation, and advanced analytics. Many centres in India have now established dedicated Centres of Excellence focused on these areas. In fact, over the past 18 months, more than 90% of top-tier GCCs have launched AI-focused hubs to lead initiatives in generative AI, predictive modelling, intelligent automation, cybersecurity, and supply chain optimization.

These teams are not just streamlining operations but are also helping redesign how work gets done. With tools like process mining and digital twins, they can map workflows, identify delays or inefficiencies, and automate repetitive tasks. This transition is enabling GCCs to move beyond isolated experiments and deliver production-ready solutions that drive faster, smarter decision-making across global functions.

For example, at IndusGuru – an on-demand talent platform that helps organisations engage with curated independent and freelance professionals – we recently supported a global manufacturing GCC looking to consolidate its Application and Infrastructure Services. Our consultant, an experienced service delivery expert, developed a cost-effective ITIL-based framework that standardized processes, introduced clear KPIs, and set up continuous improvement practices across the organisation.

Analytics is also evolving into a more strategic capability. Rather than just solving immediate problems, some GCCs are creating data products – curated, reusable insights that different parts of the business can access on demand. Supported by strong governance and scalable architectures, these efforts are turning data into a long-term competitive advantage.

That said, these advances also require the organizations themselves to evolve. GCCs are adjusting their processes, skills, and leadership focus to support this new mandate.

Organizational Change: People, Processes & Purpose

1. New KPIs: Success is now measured by business impact – revenue growth, innovation velocity – not just cost savings.

2. Talent Strategy: GCCs are hiring data scientists, AI specialists, and domain experts to lead digital initiatives. Demand is so strong that analytics salaries in India’s GCCs average around ₹25 lakh per year.

3. Innovation Culture: GCC leaders are now expected to “evangelise” innovation, promoting R&D mindsets, cross-functional agile teams, and IP development.

India as a GCC Powerhouse

India remains the most mature and expansive GCC ecosystem in the world. Today, over 1,700 Global Capability Centres operate across the country, employing close to two million professionals. Sectors such as banking, insurance, healthcare, life sciences, and even manufacturing are embracing the GCC model to drive digital transformation and innovation.

While Bengaluru continues to be a major hub, cities like Hyderabad, Pune, and Chennai have emerged as fast-growing centres of excellence. Hyderabad and Pune, in particular, have become hotspots for advanced GCCs focusing on artificial intelligence, cybersecurity, and data science. The recently launched Dai-ichi Life centre in Hyderabad – set up under a build-operate-transfer model in collaboration with Capgemini – reflects this trend, with its emphasis on AI-driven solutions, data governance, and cyber resilience.

India’s strong digital infrastructure, large pool of skilled talent, and growing network of partners make it a natural choice for companies looking to build global capabilities. New operational models such as build-operate-transfer are becoming more common, allowing firms to collaborate with local experts to establish their centres, and gradually take over full control once the foundation is in place.

What This Means for Clients and the Consulting Ecosystem

As GCCs take on more complex and strategic roles, their talent needs are also evolving. Companies now seek professionals who can not only support operations but also drive AI adoption, automation, and data platform development. 

There’s growing demand for consultants who can bridge technology and business, whether it’s rolling out generative AI pilots, setting up IP-rich innovation labs, or reimagining legacy systems.

To meet these needs, flexible talent models are becoming central to GCC strategies. Rather than rely solely on full-time hiring, many centres are turning to specialised consultants who can step in for high-impact, short-term roles. This gig-based approach gives GCCs the agility to scale quickly while tapping into niche skills on demand.

For instance, one of our clients – a GCC in the construction and glass manufacturing sector – partnered with a Generative AI consultant sourced through IndusGuru. The consultant built AI-driven tools to enhance the company’s existing Manufacturing Execution System, integrating advanced machine learning models to improve operational efficiency and future-proof its production processes.

What Lies Ahead

GCCs are moving from partial experimenters to enterprise-wide forces in the next 3–5 years:

  • AGILE, IP-focused models: Product-led teams replacing siloed delivery units.
  • Agentic AI adoption: Autonomous agent use in workflows for predictive execution.
  • Stronger governance: Real-time compliance platforms across geographies, led by Cyber Security CoEs.

The need for expert-led, flexible engagement models will only grow. Gig-based platforms that connect GCCs to highly skilled consultants will remain a vital part of this journey.

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