India’s Global Capability Centre (GCC) ecosystem is facing a major transition as companies increasingly adopt AI and reassess the long-term value of their operations. According to data from Neovay, more than 25 GCCs shut down in 2025, and that number could double this year as enterprises move beyond cost-driven models and focus on strategic value.
Industry experts say many GCCs continue to perform routine, process-driven work, making them more vulnerable to AI-led automation. Praveen Bhadada, MD & CEO of Neovay Global, said, “Many of these GCCs have historically done only commoditised work, which involve very basic processes. They now need to prove their value to their parent organisations and customers and without reinvention, (they) risk losing relevance and getting exposed in the artificial intelligence (AI) world.”
GCCs that have shut down include Opendoor, Hy-Vee, and Wells Fargo’s Chennai centre. Large-scale layoffs have also been reported at Oracle, Walmart Global Tech India, Aumovio Ford, and Fidelity Investments. Meanwhile, HCLTech is acquiring Guardian Life’s India GCC for $10.5 million.
Experts attribute the challenges to changing corporate priorities, treating GCCs as cost centres, limited local leadership, and workforce expansion without specialised skills. India currently has around 2,100 GCCs generating nearly $100 billion in annual revenue.
Neovay estimates that over 50% of India’s GCCs remain sub-scale, while data from Embark and UnearthIQ suggests 30% of GCCs established since 2021 have plateaued. Around 1.1 million-1.3 million employees are engaged in repeatable tasks that are increasingly being handled by AI, with many vacant roles no longer being backfilled.
Industry experts recommend shifting from delivery-based operations to product ownership, outcome-driven execution, specialised talent, and stronger technology platforms. They also point to weak local leadership as a major concern. According to an EY survey, 80% of GCCs have less than 10% of leadership roles based in India, while only 7% have 25%-50% of senior leadership positions located in the country.
Also read: Viksit Workforce for a Viksit Bharat
Do Follow: The Mainstream LinkedIn | The Mainstream Facebook | The Mainstream Youtube | The Mainstream Twitter
About us:
The Mainstream is a premier platform delivering the latest updates and informed perspectives across the technology business and cyber landscape. Built on research-driven, thought leadership and original intellectual property, The Mainstream also curates summits & conferences that convene decision makers to explore how technology reshapes industries and leadership. With a growing presence in India and globally across the Middle East, Africa, ASEAN, the USA, the UK and Australia, The Mainstream carries a vision to bring the latest happenings and insights to 8.2 billion people and to place technology at the centre of conversation for leaders navigating the future.