Why Are India GCCs Driving Global Innovation?

India has firmly established itself as the “GCC Capital” of the world, hosting nearly half of Global Capability Centers (GCCs) worldwide.

Once focused on cost-saving, these centers have transformed into dynamic hubs of innovation, digital transformation, and strategic value for multinational corporations. Today, over 70% of GCCs in India are actively driving digital transformation initiatives for their parent organizations, making India an essential partner in global innovation strategies.

With access to a vast talent pool, rapid advancements in technology, and a robust ecosystem that fosters agility and scale, Indian GCCs are taking on expanded roles beyond traditional support functions. They are leading end-to-end business processes, driving product development, and setting digital transformation agendas. High-impact areas such as Artificial Intelligence, Data Analytics, Cloud Computing, and Cybersecurity are now at the core of GCC operations in India, reshaping the global business landscape.

In a recent interview with ITPV Magazine, Namita Adavi, Partner at Zinnov, shared her insights on this transformative journey. Namita discussed the evolution of GCCs, the rise of specialized micro-GCCs, and the impact of partnerships with start-ups and mid-market organizations. Her perspective offers a deep dive into the trends and innovations driving India’s leadership as the GCC Capital.

Below is an excerpt from the interview –

Q: How has the role of GCCs evolved from being a traditional cost center to becoming a hub of innovation and digital transformation? What factors drove this shift?

Namita: GCCs have been around for over three decades – the drivers have evolved as a function of the ecosystem gaining maturity, a stronger pool of techno-business leaders, deep domain knowledge, and the presence of players across the value chain. Firms initially set up with cost as a primary driver – which were leveraged through outsourcing and offshoring levers – including back-office operations, transactional services, staff augmentation work, and IT support. However, over the years – especially in the last 5 years (in the post-COVID era) – there has been an accelerated shift towards innovation, creating strategic value, and digital transformation.

Several factors have driven this evolution:

• Access to Talent: The abundance of skilled talent in global hubs like India has enabled GCCs to take on more complex, innovation-driven roles, allowing organizations to execute cutting-edge projects in AI, Intelligent Automation, Data Analytics, Product Development, and now in Product Management. Given the industry has been around for 20-plus years, we now have seasoned technologists with deep expertise built over the years.
  
  
• Technology Adoption: With advancements in Cloud Computing, AI, and other emerging technologies, GCCs have been able to shift from providing support functions to driving core business strategies. Often, GCCs act as the testbeds of exploring newer use cases across these technologies, which are then deployed across the larger organization.
  
  
• Global Strategic Influence: As GCCs demonstrated success in operational excellence, their strategic influence expanded. They now play an integral role in contributing to organization-wide digital transformation agendas, product innovations, and improving time-to-market for HQs.
  
  
• Ecosystem Maturity: The GCC ecosystem in India started around the same time as the IT ecosystem and the maturity of players, property consultants, start-ups, education ecosystems, government intervention and policies are all aligning to create a unique ecosystem that has firmly established India as the ‘GCC Capital’ of the world.
  
  

Q: Can you provide insights into the diverse functions that GCCs support today? How are these functions driving strategic innovation and adding value to organizations’ global operations?

Namita: Today, while GCCs have a deep anchoring in tech, over 90% of all GCCs have evolved into multi-functional centers, becoming a true microcosm of the global organization. Today, GCCs have transformed from Product Development and Engineering R&D to Data Analytics, Supply Chain Management, Sales & Marketing, Legal Shared Services, HR Shared Services, Finance & Accounting Shared Services, Customer Experience Management, etc. As custodians and owners of all the functions across the organization, GCCs are able to create fundamental value by driving efficiencies, process innovation, and product innovation.

These functions are driving innovation across:

• Technology Leadership: GCCs are leading initiatives in AI, Automation, Cloud Services, and Cybersecurity, helping organizations innovate rapidly. By driving it as a shared services function, there is a standardization and consistency that is being achieved, which in turn is driving up efficiencies and a downstream effect is shaving off costs.
  
  
• Global Product Development: They are now owning end-to-end product development – from conceptualization, design, and development to delivery and outlining the roadmap of new products and solutions that meet global market demands.
  
  
• Data-driven Insights: With strong capabilities in data analytics and business intelligence, GCCs help organizations make informed strategic decisions that improve business outcomes globally.
  
  
• Cost Efficiency: By consolidating functions like HR, Finance, IT, Procurement, and other administrative tasks into a centralized shared services center, organizations reduce duplication of efforts across different business units. This leads to reduced operational costs and economies of scale.

Q: How are organizations leveraging micro GCCs—smaller, specialized centers focused on specific technologies or functions? What specific benefits have you seen in terms of agility and faster time-to-market?

Namita: A growing trend is the rise of smaller GCCs—not small in terms of headcount, but highly strategic in the value they bring to the table. In some cases, these centers are used as test beds for trust and experimentation, and in other cases, they are specialized centers that help the organization build new functional or technical muscle that enables accelerated outcomes. Often focused on specific technologies like AI, Advanced Analytics, or cutting-edge R&D, these centers enable rapid prototyping, testing, and launching of new solutions. This structure helps bypass traditional decision-making layers, giving companies a crucial edge in time-to-market.

Smaller GCCs – be it Nano / Micro GCCs – are intrinsically built for agility, with the option to scale. They often offer cost-efficiency, delivering impactful results without requiring extensive infrastructure. Larger GCCs are embracing this agility through Centers of Excellence (COEs), enhancing focus and innovation within their operations.

Q: In what ways are GCCs leveraging emerging technologies like data analytics, business intelligence, and AI to drive data-driven decision-making and improve your operational efficiency?

Namita: Technologies like AI, Data Analytics, and Business Intelligence are transforming decision-making and boosting operational efficiency. Currently, according to a survey we ran in Zinnov, 15% of GCCs have advanced AI capabilities, and that number is growing every day. Many AI use cases are being driven from India, and metrics across productivity, customer experience, employee experience, and even new product revenue influence, are emerging.

The Software & Internet sector leads the way, with over 29% of AI Centers of Excellence (COEs), focusing on areas like AI-based customer behavior analytics and AI/ML coding assistants to enhance R&D, sharpen customer insights, and speed up software development. Sectors like BFSI and Automotive, and even Healthcare, are also strong adopters of technology. In BFSI, AI/ML-based financial services and real-time fraud detection are improving security and streamlining processes. In Automotive, AI is enhancing safety and convenience with innovations like driver monitoring systems and automated valet parking.

What sets these AI-driven efforts apart is their ability to deliver measurable value—whether by boosting customer satisfaction, optimizing workflows, or driving broader business impact. AI and Advanced Analytics enable GCCs to anticipate trends, respond quickly to market changes, and scale operational efficiencies globally.

Redefining Global Innovation through India GCCs

India’s GCCs are no longer content with merely supporting global goals; they’re actively rewriting them. As Namita’s insights reveal, these centers are redefining what it means to be at the heart of global innovation, harnessing India’s unique talent ecosystem and technological prowess. But this transformation isn’t just about business impact; it’s about setting a new standard for what GCCs can achieve on a global scale.

Dive deeper into the full conversation by downloading the PDF of the interview with Namita Adavi, Partner at Zinnov.