The traditional GCC model—built on cost arbitrage and offshoring—is no longer enough. Today’s enterprises demand AI-powered, human-led, globally optimized operations that don’t just reduce costs but drive innovation, agility, and risk reduction.
According to ISG Research, nearly 25% of enterprises plan to establish a new GCC in the next 18 months. Meanwhile, 40% of existing GCCs are expanding—seeking more control, AI-enabled workflows, and innovation-driven efficiencies.
Yet, 70% of GCCs fail to meet expectations, often due to legacy processes, limited AI adoption, and poor alignment with enterprise strategy. The message is clear: GCCs must evolve or become obsolete.
While wage arbitrage remains relevant, AI introduces a new multiplier: AI arbitrage—the ability to combine automation and human expertise to unlock exponential gains in speed, quality, and cost efficiency.
GCCs must move from being cost-saving engines to becoming Generative Capability Centers—AI-powered hubs delivering business impact.
- IT & Software Engineering: AI-driven development, testing, and self-healing infrastructure are transforming enterprise IT.
- HR Operations: AI is automating recruiting, onboarding, and compliance, accelerating time-to-productivity.
- Business Process Optimization: Claims processing, customer support, and finance functions are being overhauled with intelligent automation.
This isn’t about simple automation. It’s about harnessing AI + human intelligence to unlock new levels of velocity, transparency, and value.
Legacy GCCs risk falling behind as next-gen models powered by AI and co-innovation take the lead. The future belongs to GCCAI—centers of excellence built on AI-first workflows and human strategic oversight.
9 Characteristics of the Next-Gen GCCAI
- “Keep Humans in the Loop of Every Critical Workflow.” AI enhances, but humans ensure judgment, compliance, and innovation.
- Embed Foundational + Last-Mile AI. Use large models (e.g., ChatGPT, Gemini) plus domain-specific agents (like AVA+) for tailored impact.
- Monetize AI Arbitrage. Combine labor arbitrage with AI-driven efficiency to optimize cost, quality, and speed.
- Create an Agent Foundry. Build, deploy, and evolve AI agents that align with changing business needs.
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Enable Co-Innovation. AI doesn’t innovate—people using AI do. Global Capability Centers must become collaboration hubs.
- Adopt Outcome-Based Commercials. Shift from T&M to pricing based on processes and results.
- Leverage Ecosystems. Partner with platforms like AWS, Microsoft, Salesforce, and ServiceNow to extend AI reach.
- Adopt Hubs & Nodes. Combine remote teams with strategic centers for innovation and delivery.
- Lead on AI Governance. AI trust, security, and compliance must be owned and governed proactively.
Tomorrow’s GCCs aren’t just back offices—they’re AI-powered growth engines. Those who act now will redefine how enterprise work gets done, unlocking competitive advantage through smarter, faster, more adaptive operations.
Also read: Viksit Workforce for a Viksit Bharat
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