Types of GCC models you Should Know

In today’s world where we seek digital resources first the Global Capability Centers (GCCs) have evolved from just being simple back-office units to strategic global hubs known for innovation, operation and business transformation.

According to the NASSCOM India alone has over 1,600+ GCCs employing 1.66 million professionals and contributing significantly to R&D, AI, cybersecurity and digital engineering. But did you know there are different types of GCCs each serving a different purpose?

Whether you’re a business leader, student, or professional, understanding the types of GCCs can help you stay aligned with the future of global work.

What Is a GCC?

A Global Capability Center (GCCs) is an offshore unit established by a global company (often in countries like India or the Philippines) to support various business functions—ranging from IT and finance to product development and data analytics.

Why Are GCCs Important?

Reason	Impact
Cost Efficiency	40–60% cost savings vs. onshore operations
Access to Talent	India produces 1.5M+ engineers annually—feeding innovation in GCCs
24×7 Operations	Time zone advantages ensure round-the-clock productivity
Digital Transformation	Over 75% of GCCs in India now focus on emerging tech like AI & Cloud
Business Continuity	Helps mitigate geopolitical and pandemic-related risks

 

Types of GCCs You Should Know

GCCs differ based on their maturity, function, and strategic contribution. Here’s a simple breakdown:

1. Transactional GCCs (Back Office Support)

These are the earliest forms of GCCs focused on executing repetitive and rules-based processes.

Key Functions	Examples
Payroll processing	HR & Finance teams
Data entry	Record management
Customer support (Level 1)	BPO operations

This is a great choice for the companies which are looking to reduce the operational costs.

2. Operational GCCs (Shared Services)

These GCCs handle end-to-end ownership of certain business functions, offering centralized services to multiple regions.

Functions Covered	Common Sectors
Finance & accounting	BFSI
Procurement & logistics	Manufacturing, Retail
Compliance & reporting	Healthcare, Pharma

These centers aim for process optimization and efficiency improvement.

3. Center of Excellence (CoE) GCCs

These are innovation-driven units with a focus on specialized capabilities such as AI, ML, Blockchain, or Cloud Computing.

Focus Area	Example Use Case
AI/ML	Predictive analytics in insurance
Cybersecurity	Threat detection platforms
IoT & Embedded	Smart devices in consumer electronics

CoEs contribute to core R&D and product innovation, often working closely with HQ.

4. Digital Transformation GCCs

This are the newest and fastest-growing type of GCC. These units play a strategic role in digital transformation for the global enterprise.

Functions	Tech Stack
Agile product development	DevOps, React, Python
Digital CX & marketing analytics	Salesforce, HubSpot, GA4
Cloud & automation	AWS, Azure, Ansible

According to a NASSCOM report, over 50% of GCCs are transforming into digital hubs.

5. Hybrid GCCs

A combination of multiple types, Hybrid GCCs blend operational support with innovation, offering flexibility and resilience.

Features	Advantages
Cross-functional teams	Agility and scalability
Both support + strategic work	Higher ROI & talent utilization

Most mature GCCs in India follow this model now.

Which Type Is Right for Your Business?

GCC Type	Best For
Transactional	Startups or SMEs focusing on cost-saving
Operational	Medium-sized firms optimizing core functions
CoE	Tech firms investing in innovation
Digital GCCs	Enterprises undergoing digital overhaul
Hybrid	Large MNCs with diverse global goals

 

Final Thoughts

GCCs are no longer just offshore cost centers—they are strategic growth engines. Choosing the right type of GCC depends on your business goals, industry, and innovation appetite.

With India becoming a digital epicenter for global talent, businesses investing in the right kind of GCC today will lead the world tomorrow.