Global Capability Centres (GCCs) have evolved from traditional cost-saving back offices to strategic enablers of enterprise growth. Today, India hosts more than 1700 GCCs employing 1.9 million professionals and generating $64.6 billion in yearly revenue.
While their cost efficiency role is still considered, these organizations are also at the frontline of digital transformation – driving breakthroughs in R&D, product engineering, AI, cybersecurity, and data-powered operations. For business leaders this implies reimagining GCCs not just as extensions of a parent company but as efficiency multipliers that can fuel long-term, sustainable advantage.
What’s Driving the Shift?
According to a report published in Economic Times, GCC hiring in India increased by 46% in FY25 and the demand is not for legacy support – it is for skills that help enterprises move up their value chain holistically.
The change comes from:
- Increasing Tech Adoption – Cloud-native architectures, AI, and predictive analytics are leveraged by businesses of all sizes today. In this environment, GCCs are expected to ideate, build, and scale data-backed solutions that improve customer experience and fuel business growth.
- Deep Business Alignment – Instead of being confined to back-office roles, cross-functional GCC teams must work collaboratively to achieve common business goals.
- Next-Gen Talent Focus – GCCs do not hire “process executors” anymore. They seek AI specialists, cloud engineers, platform innovators, and cybersecurity experts to push the boundaries of what their parent companies can offer.
- Sustainability Objectives – Enterprises including GCCs are increasingly expected to reverse climate change by balancing economic viability with environmental protection.
Shaping the Operating Model for GCC in Digital Age
At Practus, we believe four factors play a decisive role in transforming a GCC from a support unit to a high-performing Centre of Excellence:
1. Target Operating Model
A GCC’s structure – whether process-based, business unit BU)-driven, or geography-led – shapes its accountability and autonomy.
Younger hubs often benefit from process-based models where teams are organized by functions such as accounts payable, customer support, or application maintenance. The efficiency is measurable, and transactions can be quickly scaled but there is less ownership of end-to-end outcomes.
Under a BU-driven model, a GCC is aligned directly to specific business units or product lines of its parent company. For example, a global bank’s GCC might have dedicated teams for retail banking, wealth management, and risk control. Although there is more opportunity for innovation here, it also calls for higher maturity in governance and employee skills.
A geography-led GCC’s teams handle region-specific regulatory requirements, customer preferences and market operations such as those pertaining to North America, Middle East, APAC or any broad division. With tailored support for diverse markets, they improve local responsiveness and time-zone coverage. The model is apt for mature GCCs as it requires deep regional knowledge and must avoid duplication of efforts.
2. Sourcing Strategy
The choice of a sourcing model is a critical decision in shaping a GCC’s agility and capability depth. Insourcing maximizes control and cultural alignment while ensuring strong intellectual property (IP) protection for an enterprise – it is recommended where strategic processes and sensitive data are involved.
Outsourcing offers speed, scalability, and access to specialized expertise that may not exist in-house. A hybrid model combines insourcing’s stability with the flexibility of outsourcing partners. This third approach allows enterprises to scale niche skills while retaining ownership of core capabilities within the GCC.
3. Process Migration Strategy
Migrating business processes from headquarters involves choosing the right sequence of actions. Under a Fix-Shift approach, processes get standardized and optimized prior to migration, ensuring stability even though it involves more time upfront. Lift–Fix–Shift accelerates this transition by moving processes “as is,” but enhancements are made within the GCC before scaling – it needs strong transformation capability early on. Lift–Shift–Fix prioritizes speed, transferring processes rapidly and refining them later. The issue to tackle here is carrying inefficiencies forward. An organization selects its approach as per its process complexity, business urgency and risk appetite.
4. Location Strategy
Deciding a GCC’s location is as critical as choosing its operating model. Most companies headquartered in North America, the UK, and Australia get the advantages of infrastructure readiness, digital talent, and supportive policy frameworks in offshore locations like India. Inshore/Onshore GCCs are closer to headquarters and offer direct cultural alignment. Nearshore hubs balance time-zone convenience with cost efficiency.
Organizations can also weigh their options in terms of Tier 1 and Tier 2 cities. Tier 1 hubs provide mature ecosystems with experience and expertise for different functions, while Tier 2 cities have untapped talent pools, lower operating costs, and de-risking concentration. A diversified footprint often delivers the best blend of scalability and resilience.
Measuring Success Beyond Cost Savings
For years, GCCs measured success largely by cost reduction. Today, that narrow view no longer reflects their true value. Modern ROI frameworks track a richer set of outcomes that showcase how these centers fuel innovation, strengthen resilience, and drive sustainable business growth. Here’s a comparison of old and new metrics:
| Dimension | Traditional Metrics | Modern Metrics |
| Financial Impact | Cost savings through talent arbitrage | Digital revenue, new business models |
| Innovation | Process efficiency improvements | Transformation speed, patents filed, IPs created |
| Talent and Culture | Headcount, attrition rates | Employee engagement, digital skill readiness |
| Business Alignment | SLA compliance, productivity ratios | Contribution to core business strategy, co-created solutions |
| Sustainability | Facility costs | Carbon neutrality, energy savings, inclusive hiring |
Accelerating the New GCC Momentum
When designed and scaled thoughtfully, GCCs evolve into enduring engines of innovation, resilience, and growth. The opportunity lies in creating networks that keep delivering strategic value. That’s where Practus makes a difference: partnering with enterprises across the GCC lifecycle, from setup to scale. With a proven record of ROI-based engagements, we have delivered over $500Mn in value, including 25–50% productivity gains and a 2–5x rise in IP creation within just three years.
To know how we help you unlock the full potential of your GCC, contact our GCC Business Transformation Head at rajaram.ganesan@roibypractus.com.
By Rajaram Ganesan
