Redefining GCCs: From Cost Centers to Innovation Engines and Strategic Value Creators

Global Capability Centers (GCCs) have traditionally been viewed as cost centers—operational units focused on delivering back-office support, process optimization and cost efficiency. However, with the infusion of cutting-edge technologies such as Artificial Intelligence (AI) and Data Science - GCCs are now positioned to transcend this role and emerge as strategic value centers. Below, I share strategies that enable this transformation, helping GCCs and Centers of Excellence (COEs) become future-fit and evolve from cost-effective operational hubs into innovation engines, strategic enablers and value creators for their parent organizations.

1. Strategic Alignment: GCCs as Business Partners

To be future-fit, GCCs must evolve beyond execution to become true business partners. Leaders in the AI ecosystem often focus heavily on the 'how' of solving business problems, which is undoubtedly critical. However, it is equally important to establish an AI cultural fitment strategy that aligns operations and outcomes directly with enterprise goals. We need to work closely with business partners, helping them understand the effectiveness of AI through impactful storytelling while addressing their core challenges—this requires significant effort and collaboration.

Success is no longer solely measured by cost savings but by driving measurable business impact. We must reframe the value proposition to prioritise outcomes over outputs.

2. Embracing Digital Transformation

A future-fit GCC is a digital-first GCC, capable of leveraging cutting-edge technologies to drive efficiency, agility and innovation.

For years, we’ve been emphasizing the importance of data, automation and data-driven decision-making. While most organizations understand these concepts, the core challenge lies in enabling them through the implementation of the right technologies. Many GCCs still struggle with data unavailability due to poor data strategies and inadequate technology infrastructure.

To address this - we must focus on technologies like lakehouse architectures, effective data engineering practices and robust management processes. These are essential to leveraging the right AI toolkits for driving digital transformation. For example, many organizations and leaders hesitate to adopt Generative AI—not due to resistance to innovation, but because they lack the ecosystem required to develop and scale such solutions effectively.

By championing transformative technologies, GCCs can become the digital backbone of their organizations.

3. Talent Transformation: Building the Workforce of the Future

The strength of a GCC lies in its people. To be future-fit, GCCs must prioritise continuous talent transformation. In today’s Agentic world, finding the right talent to deliver on emerging technologies like LLMs, vector databases and function-calling capabilities can be a major challenge. The pace at which these technologies are advancing makes it difficult to keep up and it is very important that we come up with well-structured framework for upskilling talent.

Below are a few initiatives that could help bridge the gap.

In-House Training Programs: Double down on training to up skill existing resources to work on cutting-edge technologies by partnering with new-age training institutes or consulting organisations.

Partnerships with the Startup Ecosystem: Collaborating with startups helps bridge talent gaps and brings fresh perspectives and cutting-edge expertise to the table.

Leadership Development: Disruptive times require leaders who can thrive in uncertainty, adapt quickly, and empower their teams to navigate these changes effectively.

By focusing on these initiatives, GCCs can build the talent capabilities needed to stay competitive and embrace the future with confidence

4. Innovation as a Core Capability :-

Innovation is no longer optional—it is the cornerstone of a future-ready GCC. Organizations must prioritise innovation alongside operational excellence to remain competitive in today’s dynamic business environment. A common challenge I’ve observed is an overemphasis on day-to-day delivery, which, while important, often overshadows the need for forward-thinking initiatives.

To strike the right balance, it’s essential to leverage AI and automation to handle routine processes, freeing up valuable time and resources to explore emerging technologies. This approach not only drives efficiency but also fosters a culture of adaptability and continuous improvement, ensuring GCCs remain agile and positioned for future success

A GCC must not just support innovation but lead it, acting as the epicentre of creative solutions for the parent organization.

5. Measuring Value Creation

Ultimately, GCCs must validate their strategic value by delivering clear and measurable outcomes. They can drive significant revenue growth by accelerating go-to-market strategies, enabling innovative business models and unlocking new revenue streams. Additionally, by leveraging advanced technologies, GCCs have the potential to revolutionise the customer journey, enhancing experiences with personalization, seamless interactions and impactful engagement.

Moreover, their value should be showcased through tangible metrics that highlight their contributions—whether through groundbreaking innovations, operational efficiencies or the development of new capabilities that drive meaningful business transformation.

Value creation is the ultimate goal and GCCs must quantify their contributions to the enterprise’s success.

In closing, a future-fit GCC is more than a functional entity; it is a strategic enabler, a digital pioneer, a talent powerhouse and an innovation hub. It operates with agility, resilience and an unwavering focus on value creation.

As AI leaders, it’s on us to ensure that GCCs are empowered with the right vision, tools and capabilities to navigate disruptions and lead the way forward. The time to transform is now. Together, let’s reimagine the future of GCCs and ensure they are not just fit for the future but defining it.