Nearly 500 Global Capability Centres (GCCs) in India are reportedly not reaching their full potential and are hitting a plateau, prompting a need for a strategic overhaul focusing on enterprise value, leadership, and AI capabilities rather than just cost savings. The GCC model in India has reached a turning point, with the report from UnearthIQ and Embark emphasizing the importance of foundational choices like governance, talent strategy, and technology for the next phase of these centers.
Around 30% of GCCs established post-2020 have already plateaued, totaling approximately 140–150 centers. When combined with the estimated 360–370 centers set up before 2020, the total count nears 500–520. The report highlights that India’s GCC sector is witnessing significant growth, with projections indicating the country could host over 2,500 GCCs by 2030.
The increase in GCC numbers is being driven by robust global demand, supportive policies, and the emergence of next-gen nano GCCs focusing on AI, digital, and innovation-centric functions. However, as businesses shift their expectations towards impact, ownership, and innovation, not all GCCs are progressing at the same pace in terms of evolution and maturity, according to the report.
The plateauing of GCCs is seen as a reflection of the model’s inflection point rather than a failure. Many GCCs are structured for scalability but lack the ability to maintain relevance. The key lies in the strength of design and execution discipline, as noted by Gaurav Vasu and Shail Maniar, Co-founders of UnearthIQ.
The stagnation often stems from structural issues rather than just operational performance. Factors like execution-focused mandates, limited leadership autonomy, misalignment with evolving enterprise priorities, insufficient investment in AI and platform capabilities, and fragmented technology and data foundations are hindering some GCCs from transitioning to more valuable roles within the enterprise. “The centers that define this next phase will be those that make the right foundational choices early on, including the governance model, talent strategy, and technology backbone,” said Aravind Maiya, Co-founder and CEO at Embark.
