Global Capability Centres (GCCs) have played a significant role in transforming India’s economic landscape. What began as offshore units focused on cost-saving operations for multinational companies like General Electric, Texas Instruments, and Citigroup in the early 1990s, has now evolved into strategic assets driving global innovation and growth. Today, over 5,000 GCCs in India are not just cost centres but critical hubs of technology, business processes, and innovation, contributing to the global competitiveness of their parent companies.
Yet, as the Indian economy grows and matures, the critical question remains: Can India’s GCCs go beyond cost savings to ignite sustainable business growth? This was the theme of the recent People Matters Big Questions session, where industry leaders including Jaspreet Bakshi, Partner & India HR Leader at Marsh McLennan, and Kamal Sharma, Global Digital Connected Hubs Leader at Carrier Corporation, shared their perspectives on the future trajectory of GCCs.
The evolution of GCCs: From cost centres to innovation hubs
Historically, the primary purpose of GCCs was to take advantage of India’s lower labour costs while executing routine operations such as back-office functions, IT support, and customer service. However, the role of GCCs has undergone a profound transformation in recent years. India’s skilled workforce, technological advancements, and access to diverse markets have shifted the narrative from cost-saving to value creation.
“GCCs should no longer be seen as just about cost or meeting service-level agreements (SLAs),” said Jaspreet Bakshi. “They are now centres that directly impact both the top and bottom lines of the business, helping increase margins and drive business impact.” This shift has been largely enabled by integrating digital transformation strategies into the very DNA of GCCs.
Kamal Sharma echoed this sentiment, highlighting the technology-driven transformation of GCCs. “Emerging technologies like AI and blockchain are playing crucial roles in improving operations and creating new business opportunities. Today, 67% of GCCs are deploying AI in some form to automate routine processes, significantly improving efficiency.”
With AI and blockchain becoming cornerstones of operations in sectors like supply chain management and banking, GCCs are well-positioned to expand their influence beyond cost-cutting to becoming core contributors to global business strategies. “In the banking sector, for example,” Kamal added, “blockchain is improving transaction security, providing an entirely new value proposition for GCCs.”
Overcoming cost-centric mindsets: Redefining GCC value
Despite this evolution, many organisations still view their GCCs through a cost-saving lens, hindering their full potential. Both Jaspreet and Kamal agree that breaking away from this traditional mindset is essential for GCCs to realise their role as growth engines.
“The biggest challenge is changing the perception of GCCs from cost arbitrage units to value creation centres,” said Jaspreet. “This requires demonstrating real business impact, not just talking about it.” He believe that for GCCs to fully embed themselves into the global strategy of their parent companies, they must shift their focus from operational metrics like KPIs and SLAs to business outcomes that directly affect client satisfaction and revenue models. “It’s not enough to simply drive efficiencies,” Jaspreet continued, “the goal is to contribute to growth by enhancing margins and delivering client-focused outcomes.”
Kamal, too, sees a need for this strategic shift. “The mindset shift from cost-cutting to value creation is essential. GCCs need to focus on strategic positioning and design their operations to reflect this.” For him, defining a clear value proposition and empowering the workforce with cutting-edge technology are key factors in driving this transformation. “Once GCCs move beyond cost and start focusing on value, the potential for growth is enormous.”
The role of emerging technologies: AI, blockchain, and beyond
As GCCs transition from cost centres to growth catalysts, technology will be a fundamental driver. “AI is becoming essential across industries,” said Kamal, highlighting its transformative impact. “To make AI implementation successful, companies need a strong learning and development plan, focusing on personalised learning journeys that align employees with new technologies.”
AI is not just about efficiency, Kamal emphasised. “It has the potential to redefine business strategy, product development, and service innovation.” But for GCCs to fully harness the power of AI, we must also invest in reskilling their workforce. “The transformation isn’t just about implementing AI but also about creating a future-ready workforce.”
Jaspreet agreed and added that Gen AI, in particular, has the potential to radically change how organisations operate. “Gen AI doesn’t just automate tasks; it has the potential to redefine entire business strategies,” he explained. “At Marsh McLennan, we’ve democratised Gen AI across the organisation, empowering 90,000 colleagues to drive innovation and improve efficiency.”
For Jaspreet, the key to this transformation is aligning technology with business skills. “The focus is on ensuring employees can effectively use tools like Gen AI to deliver real business outcomes. This isn’t just about technology adoption but about embedding innovation into the very fabric of the organisation.”
The importance of leadership and collaboration
Leadership plays a pivotal role in driving the transformation of GCCs from cost-saving centres to engines of growth. According to Kamal, “Leaders in GCCs must not only understand the business models but also serve as catalysts for innovation. They need to coach teams, encourage collaboration across regions, and maintain a focus on both efficiency and innovation.”
Jaspreet concurred, adding that post-pandemic leadership in GCCs has become even more crucial. “Leaders need to foster a culture of empowerment and drive innovation. Leadership development is critical for ensuring that GCCs can balance global priorities with local needs, all while focusing on long-term growth,” he said.
Both Jaspreet and Kamal agreed that leadership is essential not only for fostering innovation but also for positioning GCCs as integral to the organisation’s overall strategy. As Kamal pointed out, “Global collaboration and partnerships with external stakeholders, technology providers, and global talent exchanges are key to expanding GCC influence and driving strategic growth.”You can also read:
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GCCs as strategic growth drivers
GCCs have already come a long way from their initial focus on cost savings. Today, they are well-positioned to drive growth and innovation for their parent organisations. However, the journey is far from over. To fully realise the potential of these centres, organisations must continue to invest in technology, build future-ready workforces, and develop strong leadership.
Kamal Sharma encapsulated the opportunity that lies ahead: “GCCs need to focus on strategic positioning and design their operations to reflect their value to the broader organisation. Innovation programs, cross-region collaboration, and strong leadership will be the key drivers of success.”
Jaspreet added that the shift towards growth is inevitable: “We are moving towards a future where GCCs will not just be seen as cost-saving entities but as centres of excellence that contribute to the overall success of the business.”
As India continues to emerge as a global hub for GCCs, the future looks promising. With the right mindset, technology, and leadership in place, these centers have the potential to go beyond cost savings and ignite significant growth for their parent organisations.
The future of GCCs in India is one of immense opportunity. As they continue to evolve from cost-saving centres to strategic assets, the focus will increasingly shift to value creation, innovation, and leadership. As Jaspreet Bakshi and Kamal Sharma have demonstrated, the key to this transformation lies in adopting a forward-thinking approach that aligns technology, talent, and business strategy. With these elements in place, India’s GCCs are poised to become critical drivers of growth for global enterprises in the years to come.
To learn more from leaders about some of the burning questions in today’s world of work, stay tuned to People Matters’ Big Question series on LinkedIn.