How to Create a Future-Ready GCC in the Tech Sector

Building a Future-Proof GCC in the Technology Sector

Global Capability Centers (GCCs) have long moved past the minimum support function to become strategic innovation and growth centers. The leading technology firms are now leveraging GCCs not just for cost benefits but for high-value capabilities in areas of AI, cybersecurity, data analytics, and product development.

As the global GCC market is projected to reach $110 billion by 2025, firms must revamp the way they establish and construct their GCCs in order to stay current. Following is the manner in which a future-proofed GCC can be constructed that not only facilitates operations but also fosters transformation.

Create a Vision Beyond Cost Savings

Globally, GCCs were set up for cost adjustment but nowadays are value creation-driven. As per NASSCOM, more than 60% of GCCs in India today are core R&D and digital transformation-driven. Microsoft, Google, and Amazon are using their GCCs for AI development and next-generation cloud technology.

Choose a Location That Has Maximum Potential

The proper place is central to the creation of a world-class GCC. India leads the market with more than 1,700 GCCs, but Vietnam, Poland, and the Philippines are following due to improved business climates.

Key considerations to bear in mind when selecting a GCC location:

• Availability of talent: India alone graduates 1.5 million engineers annually.
• Regulatory environment: Favorable policies like PLI (Production Linked Incentive) schemes attract foreign investments
• Infrastructure and connectivity: Smart cities and technology parks lead to ease of doing business

Leadership and Talent Development Focus

GCCs perform best when they can hire and retain the best talent. The next generation of employees expects demanding work, competitive salaries, and opportunities for growth. Successful GCCs are:

• Collaboration with universities for technical courses
• Upskilling employees in AI, blockchain, and cybersecurity
• Building leadership leads to the promotion of local talent into global roles
• Reskilling businesses, according to McKinsey, have a 30-50% increase in productivity and lower rates of attrition.

Build for Digital and AI-Driven Operations

A new GCC is not just digital-first—it’s AI-first. Companies like TCS and Infosys are integrating AI-driven process automation, predictive analytics, and cybersecurity into their GCC designs.

Key digital enablers for a modern GCC:

• AI-led automation: Cutting human workloads by as much as 60%.
• Cloud infrastructure: Enabling open worldwide collaboration
• Cybersecurity frameworks: Protecting sensitive corporate data 

Foster an Innovation Culture

GCCs must move beyond implementation to become centers of innovation. The best GCCs are building:

• Innovation labs for piloting and executing new technology solutions
• Cross-functional teams for cooperation with other global R&D groups
• Internal startup accelerators to support staff ideas

For example, JPMorgan Chase’s GCC in India developed an artificial intelligence-driven fraud detection product, reducing fraud cases by 20%.

Implement Effective Governance and Compliance

As GCCs grow in their function, the governance becomes more complicated. CFOs and CTOs are primarily concerned with data security, regulatory compliance, and risk management.

To reduce risks, GCCs should:

• Implement zero-trust security models
• Adhere to GDPR, CCPA, and regional data laws
• Employ blockchain-based audit trails for enhanced transparency

The Future of GCCs:

The role of GCCs is shifting from execution to transformation. While the global GCC market is expanding at 10% CAGR, those businesses that are investing in digital capabilities, human capital development, and AI-driven processes will continue to stay ahead.

Executives should pose themselves this question: Is our GCC nothing more than a support function, or does it drive next-generation innovation and competitive differentiation? 

The future belongs to smart, agile, and digitally strong GCCs—and the moment to build one is now.