Articles

The new blueprint for GCC: Adapting to AI, automation & data analytics

- Panchalee Thakur

Global Capability Centers (GCC) are driving the enterprise-wide agenda for digital transformation, cementing their position as strategic assets for global corporations. GCCs are establishing centers of excellence in areas such as Artificial Intelligence (AI), automation, and cybersecurity. Over 60 percent of digitally advanced GCCs are now engaged in enterprise-wide AI initiatives, leveraging GenAI, Machine Learning (ML), and real-time data analytics to accelerate transformation.

Increasingly, an organization’s business competitiveness is being linked to the maturity level of its GCC. As a hub of innovation and skills in cutting-edge technologies, GCCs are responsible for designing, overseeing, and upgrading the technology infrastructure and software applications to catalyze the parent organization’s future-readiness.

Redefining the GCC talent model

AI, automation, and data analytics are transforming how GCCs generate value. The talent they hire is hence critical to their success. GCCs are today positioning themselves as magnets of talent in niche technology and functional skills, blending technology adoption with a future-proof workforce strategy.

Rise of AI-native workforces

BCG reports that while 89 percent of companies have invested in AI, only 26% have successfully scaled value. It highlights the urgent need for AI-literate talent in GCCs to bridge the implementation gap.

Upskilling and hybrid workforce models

GCCs are shifting from experimentation to practical applications of AI focused on talent management and risk mitigation. A recent study by EY concluded that over 78 percent of GCCs are upskilling teams for GenAI adoption, while 37% are piloting use cases. This embedding of AI fluency across functions will help GCCs harness the potential of AI, ML, and cognitive computing in the next 2-3 years.

Shifting job roles and productivity

AI and intelligent automation have enabled some GCCs to boost productivity while creating demand for new roles such as AI product management, data governance, and algorithm auditing. There is a 20–25% lateral movement of talent from IT firms to GCCs, driven by better pay, exposure to end-to-end product ownership, and opportunities in emerging technologies like ER&D.

Balancing innovation with AI governance

As GCCs evolve into digital and AI-driven innovation hubs, the need to innovate responsibly is becoming increasingly important. While enterprises turn to GCCs to scale AI and data analytics, they also expect them to take ownership of governance, compliance, and ethical oversight throughout the implementation process.

What GCCs need to prioritize

Building AI governance frameworks from the ground up

EY highlights that data-led GCCs must be supported by robust governance frameworks. This includes enforcing data quality standards, establishing clear ownership models, and aligning with global compliance requirements. Standardized metadata frameworks and traceability mechanisms are critical to ensuring responsible data use.

Governed experimentation at scale

BCG observes that while many GCCs are exploring AI use cases, only a few have implemented the right mix of agility and risk controls. High-performing GCCs are setting up cross-functional governance teams, including legal, compliance, technology, and procurement. These teams provide oversight and enable safe, scalable innovation within defined guardrails.

Transparency, explainability, and model risk management

McKinsey emphasizes that as AI adoption increases, GCCs are taking a leading role in model risk management. This includes deploying tools for explainable AI, bias detection, and compliance monitoring. Transparency and traceability are essential for building trust in AI systems, particularly in regulated industries.

Enabling parent organizations to move up the value chain

Some organizations are leading the way with their GCCs already utilizing advanced technology to drive business benefits.

  • American Express aimed to improve service delivery and operational efficiency. The company initially set up GCCs to handle back-office functions. Over time, their scope was expanded to cover areas such as fraud detection, data analytics, and customer service. The strategy paid off. By maximizing a skilled workforce and advanced technologies, the GCCs in India and other geographies helped American Express enhance service quality while slashing costs.
  • A German automotive company embarked on a mission to set up an R&D facility outside Germany. By leveraging India's STEM talent and collaborating with design and tech start-ups, it established an R&D facility in India. Today,  the company’s largest R&D setup delivers high-value services such as Computer Aided Design (CAD), Computer Aided Engineering (CAE), IT services, design, simulation, analytics, and Product Lifecycle Management (PLM), enhancing innovation for the parent company.
  • A US-based retail company needed to build a robust analytics capability center. The company tapped into India’s skilled analytics talent, a thriving start-up ecosystem, and advanced open-source tools (R and SQL) to establish the facility. The end result was encouraging as 55% of the company’s global in-house analytics team was employed in India, strengthening its analytics capabilities.
  • HSBC needed cost-effective back-office support to improve operational efficiency. It  established GCCs that evolved into strategic hubs offering IT, analytics, and customer support. The GCCs drove innovation and strengthened HSBC’s global operations, significantly contributing to the bank's strategic goals.

India a hotspot for GCCs

India has emerged as the preferred destination for global enterprises to establish and scale their capability centers. A stable and supportive political landscape, the availability of talent in tech and functional areas, a large consumption-driven domestic economy, and a robust regulatory framework have enhanced India’s appeal to global corporations.

  • India currently hosts more than 1,800 GCCs employing 1.9 million professionals. The sector is projected to grow from $64.6 billion in 2024 to $110 billion by 2030.
  • Over the last five years, more than 50% of GCCs in India have evolved into portfolio and transformation hubs, with a 40% CAGR increase in global roles and women in leadership positions.
  • Nearly 90% of GCCs now operate as multi-functional centers, supporting technology, operations, and product engineering.
  • Engineering R&D GCCs are growing 1.3x faster than the overall GCC market, signaling a shift toward high-value, complex innovation work.

The way forward

GCCs need to continuously evolve by adopting new technologies and trends so as to remain competitive and future-proof. GCCs are increasingly leveraging Gen AI to automate reports, create content, and model business scenarios to drive fast iteration and innovation. They are proactively aligning with global environmental goals to optimize resource utilization and incorporate sustainable technologies such as AI-powered energy management and IoT sensors within their facilities.

With cybersecurity and regulatory compliance gaining importance, GCCs are leveraging encryption and multi-factor authentication to drive AI-based cybersecurity. They are also focusing on regulatory technologies to streamline compliance and monitor regulatory changes.

Going forward, GCCs will be evaluated not on intent but on impact. They will need to demonstrate the value they have delivered in driving innovation and digital transformation and their agility in turning challenges into opportunities. Only then can they continue to be strategic assets for their parent companies.

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About the author

Panchalee Thakur

Independent Consultant