The question is no longer whether AI will transform global business, but rather how prepared we are to harness it, especially in the context of Global Capability Centers (GCCs).
The world is no stranger to technological evolution, but few shifts have been as rapid and far-reaching as the one triggered by Artificial Intelligence. From boardrooms in New York to delivery centers in Bengaluru, conversations revolve around the same pressing question: Will AI disrupt the GCC model as we know it?
It’s a fair question, and one rooted in the growing capability of AI to automate, optimize, and accelerate processes that once required hundreds of people and hours. Yet, this question, while urgent, may also be incomplete.
Is AI replacing the need for people and processes traditionally housed in GCCs? Or is it simply inviting a reimagination, one that shifts the GCC paradigm from a support function to a strategic AI-powered innovation hub?
Let’s examine the core shifts.
1. The Core Assumption: AI Replaces Scale
Historically, Global Capability Centers were built on the promise of scale and cost efficiency. According to NASSCOM, India currently hosts over 1,800 GCCs, which contribute nearly US$64.6 billion in revenue annually and employ 1.66 million professionals. These centers enable enterprises to access global talent, standardize processes, and reduce costs.
However, Generative AI and Machine Learning now challenge this foundational assumption. Why scale a team of 500 when an LLM can do the job of 50 analysts within minutes?
This fear isn’t baseless, but it’s not the whole story either.
While AI can automate repetitive tasks, it doesn’t eliminate the need for judgment, strategy, contextual thinking, or innovation. And this is precisely where the GCC model finds a new life.
2. AI as a Catalyst for GCC Reimagination
AI doesn’t signal the end of GCCs; it invites their reinvention.
Imagine a GCC not as a back-office hub, but as a Center of Excellence for AI-led transformation, embedded in the core of business strategy. Already, we are seeing GCCs evolve into AI Operations (AIOps) hubs, integrating intelligent automation into cybersecurity, customer experience, financial modeling, and supply chain optimization.
According to Deloitte’s 2024 GCC Outlook, over 62% of GCCs are already investing in AI and automation-driven use cases, and 48% have initiated AI Centers of Excellence to explore advanced analytics and GenAI capabilities.
We’re actively witnessing this shift. Our engagements no longer begin with “How many resources do you need?” but “What can we transform together?” The shift is tangible.
We have partnered with pilot AI-based quality assurance frameworks, real-time process optimization engines, and conversational intelligence bots, all of which were designed, deployed, and scaled within GCC ecosystems.
3. Strategic Shifts, Not Shutdowns
Rather than trimming the workforce, the arrival of AI is prompting smart reallocation.
Think about this: What if 30% of roles in a GCC are automated? That doesn’t spell redundancy; it creates space. Space to re-skill, up-skill, and focus on higher-order problem solving. The role of talent moves from execution to orchestration.
We are witnessing the rise of hybrid talent models, where AI agents handle the routine tasks and humans handle complex areas, such as strategy, ethical decision-making, relationship management, and innovation.
Moreover, AI enables micro-specializations within GCCs. With the help of data lakes and AI engines, employees can now focus on niche, high-value verticals—like responsible AI governance, bias detection, or multilingual AI training. These weren’t even on the job map five years ago.
4. GCCs in the Driver's Seat of Digital Transformation
AI is also deepening the GCCs’ role in the broader digital narrative. Gone are the days when GCCs merely supported transformation journeys; today, they lead them.
Companies are leaning on their capability centers for real-time AI experimentation, sandboxing of digital twins, generative content engines, and predictive modeling solutions. In fact, as per EY’s 2024 report, 72% of GCCs in India are now involved in enterprise-level digital initiatives, often reporting directly to the C-suite.
Teams within our GCC ecosystem are engaged in research and development efforts around AI in cybersecurity, particularly in early anomaly detection—and in AI-supported delivery practices intended to improve overall customer experience.
This is not just a digital transformation. It’s a digital elevation.
5. Implications and Future Outlook
The implications of this shift are profound.
First, the talent landscape is undergoing significant changes. Skills like prompt engineering, AI ethics, cloud-AI orchestration, and neuro-symbolic computing are now in demand. GCCs must become talent incubators, fostering this next-gen capability stack.
Second, operating models need overhauling. AI-integrated DevSecOps, agile governance frameworks, and explainable AI principles must be built into the very DNA of capability centers.
Third, leadership needs a mindset shift, from managing headcount to managing outcomes, from measuring throughput to measuring innovation.
And finally, this is a moment for India to solidify further its position as the AI capital for GCCs worldwide. With our combination of digital fluency, youthful demographics, and innovation ecosystems, India is uniquely positioned to drive this global evolution.
Conclusion: The Next Evolution Begins Here
So, will AI disrupt or redefine the GCC model?
The answer is clear; it will redefine it. Profoundly, positively, and permanently.
AI is not the enemy of capability centers. It is their evolution partner. What we are witnessing isn’t the automation of the past, but the awakening of a more intelligent, value-driven, innovation-first model of global capability.
The future GCC will be more innovative, leaner, faster, and far more strategic than ever imagined.
So, as you step into your next GCC transformation project, ask yourself, not what AI will take away, but what it will empower you to build.
The future is not automated. It is augmented, and the GCCs of today are leading the way into that smarter tomorrow.
About the Author
Kumar Rajagopalan exemplifies transformative leadership as Vice President of Strategic Initiatives and Country Head at Dexian. With over 30 years of industry experience, Kumar has propelled Dexian into a global growth powerhouse, redefining the role of Global Capability Centers (GCCs) across international markets. His visionary strategy and pragmatic execution have driven exceptional innovation and operational excellence, positioning Dexian as a leader in its field.??
Kumar’s remarkable journey from finance to technology leadership underscores his adaptability and strategic insight. Initially a Chartered Accountant, he seamlessly transitioned into technology, leveraging his expertise to streamline enterprise solutions and system consolidations. His work has enhanced Dexian’s financial modeling and ERP systems, supported successful mergers, and solidified the company's market dominance.???
Beyond his corporate achievements, Kumar is deeply committed to Corporate Social Responsibility (CSR). His initiatives, such as the partnership with the Head Held High Foundation, address critical societal issues and empower marginalized communities. Kumar's human-centric approach fosters an inclusive and supportive work culture, balancing professional success with personal well-being. His leadership drives business excellence and creates meaningful societal impact, making him a transformative force within and beyond the corporate world.?