Remember the days when offshore centres were mainly seen as cost-cutting machines? Those days are long gone. Today, Global Capability Centres (GCCs) are no longer just back-office hubs handling support tasks. They’ve evolved into strategic innovation powerhouses that contribute to core business functions, product development, customer experience, and even leadership pipelines.

In this blog, we’ll unpack what GCCs are, explore why they’re booming, and dive into how they’re shaping the future of global business.

A GCC, formerly known as a Global In-house Centre (GIC), is an offshore unit set up by multinational companies to provide a wide range of support services. These include IT operations, R&D, finance, HR, analytics, customer support, and even legal functions. But today, many GCCs go far beyond support—they drive digital innovation, develop products, and enable strategic decision-making for their parent organisations.

India, the Philippines, Poland, and Mexico are among the most popular destinations for setting up GCCs due to their skilled talent pool, cost advantages, and strong tech ecosystems.

GCCs started as cost-saving initiatives, but over the years, they’ve transformed into value-creating engines. Here’s a quick timeline of this evolution:

• Phase 1: Cost Arbitrage – Simple transactional processes (e.g., payroll, customer support)
• Phase 2: Process OptimisationSpecialised – Leaner operations, improved efficiency
• Phase 3: Centres of Excellence – Specialised hubs for analytics, R&D, cybersecurity, etc.
• Phase 4: Innovation & Strategy – Direct ownership of digital transformation initiatives, AI/ML projects, product development

Today’s GCCs aren’t just following orders from HQ. They’re co-creating solutions and often leading digital-first initiatives.

Let’s break down the key reasons why multinational corporations are increasingly betting big on GCCs:

1. Access to Skilled Global Talent: Countries like India offer a deep talent pool of engineers, data scientists, and domain specialists. Plus, they’re hungry to learn and innovate.
2. Cost Efficiency (Still Relevant!): While cost is no longer the only driver, it still matters. GCCs offer a better return on investment compared to traditional HQ operations.
3. Digital Transformation at Scale: Need to implement an enterprise-wide AI system? GCCs help scale initiatives fast while maintaining quality.
4. 24/7 Operations: With GCCs in different time zones, businesses can provide round-the-clock service and faster turnaround times.
5. Focus on Core Business: By offloading certain functions to GCCs, HQ teams can focus on strategic growth.

Let’s look at the most important trends that are changing how GCCs operate and what they focus on:

AI & Automation Integration

GCCs are leading the charge in implementing AI for both back-end and customer-facing processes. Think intelligent chatbots, predictive analytics, and automation of routine workflows.

Agile & product thinking

Agile isn’t just a buzzword anymore. It’s a way of working. GCCs are moving from project-based mindsets to product-based ownership.

Hybrid work culture

The pandemic normalized remote work, and now GCCs are leading hybrid work innovation. Many are hiring talent from Tier 2 and Tier 3 cities to expand their reach.

Cybersecurity as a Core Function

With increased digital activity comes increased risk. Many GCCs now serve as cybersecurity nerve centres for global enterprises.

ESG & Diversity Initiatives

Leading GCCs are embedding Environmental, Social, and Governance (ESG) goals into their operations—not just because it’s good PR, but because it’s good business.

• Walmart Global Tech uses its India GCC for everything from supply chain innovation to customer experience enhancements.
• JPMorgan Chase has built a massive GCC presence in India that handles AI research, app development, and cybersecurity.
• Google leverages its centres in Bengaluru and Hyderabad for cloud infrastructure management and product development.

These examples prove that GCCs are not just supportive arms; they’re becoming the indispensable brains of the operation.

It’s not just companies that win. The workforce benefits too:

Exposure to Global Projects: You get to work on cutting-edge tech used by millions worldwide.

Faster Career Growth: Because GCCs are leaner and more agile, employees often wear multiple hats.

Leadership Pipelines: Many companies now groom leaders within their GCCs for global roles.

Upskilling Opportunities: Training in AI, cloud, product thinking, and cross-functional collaboration is now a norm.

Talent Retention: With rising demand, attrition is a challenge. Companies are investing more in employee well-being, flexible work options, and learning programs.

Culture Alignment: Bridging the cultural gap between HQ and offshore centres is key. This includes leadership exchanges, cross-location team-building, and shared OKRs.

Data Security & Compliance: Many GCCs now have in-house legal and cybersecurity teams to ensure compliance with global regulations.

Scalability: As demand grows, scaling responsibly without compromising on quality or employee experience is a delicate balance.

The future is bright. With the rise of technologies like GenAI, blockchain, and edge computing, GCCs are poised to become even more central to business strategy. We can expect:

• GCCs are becoming test beds for innovation before global rollout
• Increased collaboration between academia and GCCs for R&D
• Rise of micro-GCCs in Tier 2/3 cities and new countries (e.g., Vietnam, Romania)
• Even more leadership roles are emerging from within GCC talent pools

GCCs are no longer optional or nice-to-have. They’re mission-critical. As they evolve from execution engines to innovation labs and strategic advisors, businesses must rethink how they invest in and engage with their global capability centres. Want to build or scale a GCC the smart way? Let’s connect with Intervue!

If you're a business leader, now's the time to explore how a well-structured GCC can future-proof your operations and drive innovation at scale.