Global Capability, Localised Excellence: The Evolving GCC Imperative

Shrivatsa Kajaria
Jul 14
12 min read

At a Glance

A fundamental shift: Global Capability Centres (GCCs) are rapidly evolving from transactional cost-savers into strategic hubs for innovation, talent, and enterprise-wide value creation. The old model of pure labour arbitrage is obsolete.
The AI catalyst: The rise of generative AI and hyper-automation is not just an efficiency play. It represents the engine that allows GCCs to build entirely new capabilities, redefine productivity benchmarks, and become indispensable partners to the C-suite.
A call for leadership: To win in this new era, leaders must re-charter their GCCs with a mandate for innovation, not just operation. This requires a bold reassessment of talent strategy, location footprint, and governance models to unlock the next horizon of growth.

Why GCCs Matter Now

The global business landscape exists in a state of permanent flux. Geopolitical tremors, a fierce global war for high-end skills, and relentless pressure to innovate have reshaped the strategic calculus for every enterprise leader. Within this volatile environment, the humble Global Capability Centre has quietly emerged as a powerful lever for resilience and growth. Once viewed primarily through the narrow lens of cost reduction, the GCC now serves as a critical asset for accessing world-class talent, accelerating digital transformation, and building a more agile, intelligent enterprise.

This transformation represents more than theoretical vision or future-state aspiration; it unfolds before us today. Everest Group's 2025 analysis reveals that over 70% of new GCCs are established with a primary mandate for digital innovation, marking a stark reversal from just five years ago. The conversation in boardrooms has evolved beyond asking "how can we lower costs?" to exploring "how can our global centres make us smarter, faster, and more competitive?"

This evolution springs from a convergence of powerful forces. The maturity of cloud platforms provides a ubiquitous foundation for global collaboration. The scarcity of specialist talent in traditional markets compels organisations to cast a wider net. Most profoundly, the explosion of AI and automation creates unprecedented opportunities to transform not just where work happens, but how value itself gets created. For CEOs, CFOs, and transformation leaders, the imperative rings clear: stop managing your GCC as an outpost and start leading it as a strategic engine for your next digital horizon.

The Strategic Evolution of GCCs

The journey of the GCC tells a story of accelerating ambition. What began as a simple tactical play has matured into a sophisticated strategic capability. Understanding this evolution proves essential for unlocking the potential of today's next-generation GCC.

GCC 1.0: The Cost Imperative

The first wave, beginning in the late 1990s, was driven by a single, powerful idea: labour arbitrage. Companies moved high-volume, repeatable, and non-core processes to lower-cost locations. The focus centred on transactional functions like finance and accounting, payroll, and basic IT support. Success was measured almost exclusively by cost-per-FTE and adherence to simple service level agreements (SLAs). The centre operated as an operational back office, culturally and strategically distant from headquarters.

GCC 2.0: The Process Excellence Engine

The 2010s witnessed the emergence of a more sophisticated model. With the initial cost savings banked, the focus shifted to process excellence and standardisation. These GCCs became centres of excellence (CoEs) for specific functions, leveraging Six Sigma, Lean principles, and the first wave of Robotic Process Automation (RPA) to drive efficiency and quality. They were no longer just cheaper; they often proved better and faster at executing their designated processes. The metrics evolved to include first-time-right rates, cycle-time reduction, and improved internal customer satisfaction.

GCC 3.0: The Value Creation Partner

Today, we stand firmly in the era of GCC 3.0. These centres transcend mere service delivery; they form integral parts of the global enterprise, often leading the charge in critical areas. They have ascended far up the value chain from transactional tasks to knowledge-intensive, strategic work.

Next-generation GCCs now house teams dedicated to:

Advanced Data Analytics and AI: Building the predictive models that drive commercial decisions.
Product Engineering and R&D: Developing and testing new software and digital products.
Cybersecurity Operations: Providing round-the-clock monitoring and threat intelligence for the entire organisation.
Digital Marketing Operations: Managing global campaigns and customer data platforms.

The mandate extends beyond cost or efficiency. Today's GCCs pursue innovation, agility, and access to skills that remain scarce everywhere. These centres function as talent magnets, attracting top-tier engineers, data scientists, and strategists who seek to work on cutting-edge projects with global impact. They operate as true partners, collaborating seamlessly with headquarters to solve the company's most complex challenges.

This journey from cost centre to innovation hub represents the single most important trend in global business operations.

Leaders who still view their GCCs through a 1.0 or 2.0 lens leave immense value on the table.

The AI-Powered Operating Model

The transition to value-creation partner accelerates dramatically through artificial intelligence. AI serves as the catalyst transforming the GCC from a centre of execution to a centre of intelligence. It redefines productivity benchmarks and enables the creation of services that were previously impossible. An AI-powered operating model no longer represents a "nice to have"; it forms the core of a competitive next-generation GCC.

Beyond RPA to Hyper-automation

For years, RPA stood as the poster child for GCC efficiency, automating simple, rules-based tasks. Hyper-automation represents a significant leap forward, combining AI technologies like machine learning, natural language processing (NLP), and computer vision with process mining tools to create intelligent, end-to-end workflows.

Rather than merely automating a single step in an invoice process, a hyper-automated system can ingest an invoice in any format, extract the relevant data, validate it against purchase orders, identify anomalies for human review, and schedule the payment, learning and improving over time. A recent Bain & Company study suggests AI-enabled global delivery models can boost the productivity of knowledge workers by up to 40%. This liberation allows human talent to focus on strategic analysis, exception handling, and value-added activities.

The question no longer revolves around 'Can AI make our GCC cheaper?' Instead, we must ask 'How can our GCC use AI to make the entire enterprise smarter, faster, and more competitive?'

Generative AI as a Capability Multiplier

Generative AI transforms the game for GCCs, moving them from process execution to content and code creation. Early adopters already witness profound impacts:

Software Development: GCC-based engineering teams employ AI co-pilots to write, test, and document code, dramatically increasing development velocity and enabling them to tackle more complex projects.
Customer Operations: Advanced, domain-trained chatbots handle a growing majority of customer queries with high degrees of personalisation and accuracy, operating around the clock. This elevation allows human agents to become specialists who manage complex relationships and drive customer loyalty.
Legal and Compliance: AI tools now perform initial reviews of contracts, identify non-standard clauses, and even draft routine legal documents, all within the secure environment of the GCC.
Marketing and Content: Global marketing hubs leverage generative AI to create and localise campaign content at previously unimaginable scale and speed.

The GCC as a Data and Analytics Powerhouse

Perhaps the most strategic role for the AI-powered GCC lies in its function as the enterprise's data and analytics engine. With their deep expertise in process and systems, GCCs occupy a unique position to become custodians of data quality and the home of advanced analytics. By centralising data science and machine learning talent in a GCC, organisations can:

Build and maintain a "single source of truth" for critical business data across the enterprise.
Develop predictive models for everything from customer churn to supply chain disruption, providing early warning systems and actionable insights.
Provide business units across the globe with on-demand insights and interactive dashboards that inform decision-making at every level.
Ensure that data governance and privacy standards receive consistent application across the organisation, meeting regulatory requirements and building customer trust.

By embedding AI at the core of their operating model, GCCs achieve more than simply doing the same work faster. They fundamentally transform the work they're capable of performing, creating new sources of value for the entire enterprise.

Talent Magnet and Culture Integration

The most sophisticated technology and the most brilliant strategy prove worthless without the right people to bring them to life. The single greatest determinant of a next-generation GCC's success lies in its ability to attract, retain, and inspire top-tier talent. This demands a fundamental shift in mindset: from viewing the GCC as a pool of low-cost labour to cultivating it as a vibrant, integrated hub of global expertise.

Designing a Compelling Value Proposition

In the global war for talent, the best engineers, data scientists, and digital strategists enjoy their pick of employers. They seek more than employment in a transactional back office. To attract them, a GCC must offer a compelling Employee Value Proposition (EVP) built on three essential pillars:

Meaningful Work: Top talent wants to solve complex problems and witness the impact of their efforts. The GCC must offer projects that sit central to the company's strategy, not peripheral support tasks that feel disconnected from core business outcomes.
Career Progression: Clear, well-defined career paths must exist that allow talent to grow within the GCC and, crucially, across the global organisation. The head of the GCC should not represent the ceiling of ambition but rather a stepping stone to broader leadership roles.
A 'One Company' Culture: Employees must feel they belong to a single, global team. This requires unified HR policies, shared digital collaboration tools, and, most importantly, a culture of mutual respect and partnership with headquarters.

Your GCC represents more than an outpost; it functions as a vital organ of your global enterprise, and everyone who works there must experience this reality daily.

Building the Cultural Bridge

Creating a seamless global culture requires more than one-way communication where headquarters dictates and the GCC follows. It demands a two-way exchange that enriches the entire organisation. Leading companies actively construct this cultural bridge through several key initiatives:

Distributed Agile Teams: Rather than handing off projects, they create blended squads with members from both headquarters and the GCC. These teams collaborate in real-time, sharing ownership and co-creating solutions. This approach breaks down "us and them" barriers faster than any other method.
Reverse Mentoring: Pairing senior leaders at headquarters with junior, tech-savvy talent in the GCC proves a powerful tool. The leaders gain first-hand insight into new technologies and working methods, while the junior talent gains visibility and develops a deeper understanding of business strategy.
Mobility Programmes: Short and long-term assignments that move talent between the GCC and other global offices prove essential for building personal networks and fostering a shared corporate identity. These exchanges create ambassadors who understand multiple facets of the business.
Leadership with Global Clout: The leader of the GCC can no longer function as a simple operations manager. They must serve as a strategic business partner with a seat at the leadership table, able to advocate for their team and align their centre's capabilities with the company's biggest priorities.

By investing in talent and culture, organisations transform their GCCs from delivery centres into destinations where the world's best talent comes to build careers that matter.

Location Strategy and Risk Balancing

As the mission of the GCC evolves, so too must the strategy for where to locate it. The decision transcends simple calculations of labour cost. It becomes a complex equation that must balance talent availability, geopolitical risk, operational resilience, and time-zone alignment. The monolithic, single-location mega-centre gives way to a more sophisticated, diversified portfolio approach.

Beyond the Tier 1 Giants

For decades, cities like Bangalore, Manila, and Dublin dominated the GCC landscape. Today, these Tier 1 hubs often face saturation, experiencing high staff attrition rates and intense wage inflation. Forward-thinking organisations now explore emerging Tier 2 and Tier 3 cities to build their next-generation capabilities. Locations like Kolkata in India, Gdansk and Krakow in Poland, and Guadalajara in Mexico offer several compelling advantages:

Access to Untapped Talent Pools: These cities boast strong universities and deep wells of skilled graduates eager for opportunities with global companies.
Lower Attrition: With fewer large competitors, organisations find it easier to become employers of choice and retain talent for longer periods.
Favourable Cost Structures: While not the only factor, both salary and real estate costs typically prove lower, allowing for greater investment in people and technology.

The key lies in rigorous due diligence, assessing not just current skills but also the long-term talent pipeline, infrastructure quality, and local government support for business development.

Gartner's 2025 risk report highlights geopolitical instability as the top threat to single-location global delivery models, urging leaders to prioritise portfolio diversification.

The Rise of the Hybrid Portfolio Model

Geopolitical uncertainty has become the new reality. Relying on a single country for critical business functions represents a high-risk strategy that few boards will tolerate. In response, a hybrid portfolio or "hub-and-spoke" model gains increasing traction. This approach involves:

Establishing multiple, smaller centres across different geopolitical regions to hedge against disruption and ensure business continuity.
Leveraging near-shore hubs in locations like Eastern Europe or Latin America. These provide better time-zone overlap for real-time collaboration with teams in Europe and North America.
Defining specific capabilities for each location based on local strengths. One centre might excel as the powerhouse for data science, another for cybersecurity, and a third for finance operations, creating a network of specialised excellence.

This distributed model enhances resilience significantly. A disruption in one location can be mitigated by shifting work to another centre. It also provides access to a more diverse range of skills and perspectives, fuelling innovation across the enterprise.

ESG and the Location Calculus

Sustainability now forms a critical factor in location decisions. Stakeholders, from investors to customers, expect companies to operate responsibly. When evaluating potential GCC locations, leaders must consider:

The availability of renewable energy to power facilities and reduce carbon footprint.
The quality of public transport and infrastructure that enables sustainable commuting for employees.
The political stability and ethical governance of the region, ensuring alignment with corporate values.

Building a sustainable, resilient, and geographically diverse GCC footprint represents a complex undertaking, but it proves essential for safeguarding the enterprise and ensuring it can thrive in an unpredictable world.

Action Plan: Five Moves for GCC Excellence 2025-27

Transitioning a GCC from cost centre to strategic innovation hub requires more than good intentions. It demands deliberate, decisive action from senior leadership. Here are five essential moves to position your organisation on the path to GCC excellence.

1. Re-Charter Your Mission from Cost to Value

The first and most critical step involves formally redefining the purpose of your GCC. Work with your board and executive team to create a new charter that shifts the primary mandate from labour arbitrage to value creation. This new mission should prove ambitious, measurable, and clearly communicated across the entire organisation. It grants the GCC leadership permission to think bigger and invests the entire organisation in its success.

2. Appoint a Transformation Leader, Not an Operations Manager

The leader of your next-generation GCC must function as a strategic business partner, not merely a caretaker of operational metrics. Appoint a leader with strong business acumen, technological fluency, and the political savvy to build bridges with headquarters. Empower them with a seat at the leadership table and the budget to invest in talent and technology. Their primary KPI should measure the value and innovation delivered to the enterprise, not just cost savings achieved.

3. Fund a Dedicated 'Innovation Pod'

Ignite change by creating a dedicated, ring-fenced team within the GCC whose sole purpose centres on experimenting with emerging technologies. Fund this 'innovation pod' to explore applications for generative AI, build proof-of-concepts for hyper-automation, and discover new ways to leverage the company's data. This creates a low-risk environment to test new ideas and demonstrates a tangible commitment to innovation, making the GCC a more attractive destination for top tech talent.

4. Build a 'One-Company' Talent Architecture

Dismantle the cultural and systemic barriers between the GCC and the rest of the organisation. This means unifying your HR platforms, creating a single global job architecture, and designing career paths that allow for seamless movement between the GCC and other company locations. Invest in collaborative technologies and cultural integration programmes to ensure that every employee, regardless of their location, feels part of one team, working towards one mission.

5. Conduct a Rigorous Geo-Risk and Talent Audit

Safeguard your operations by taking a clear-eyed look at your current global footprint. Map your existing locations against both future talent requirements and the evolving geopolitical landscape. Are your centres positioned where the skills of tomorrow will emerge? Do you rely too heavily on a single region? Use this audit to build a three-to-five year roadmap for diversifying your footprint, mitigating risk, and positioning your GCCs in the talent hotspots of the future.

From Cost Centre to Innovation Hub

The role of the Global Capability Centre has changed irrevocably. The narrative of simple cost-cutting has given way to a far more compelling story of value creation, strategic partnership, and enterprise-wide transformation. Driven by the power of AI and the global quest for top-tier talent, the GCC no longer occupies the periphery of business; it sits at the very core. It has become the engine room for digital innovation, a crucible for developing future leaders, and a critical asset for building a resilient, intelligent, and truly global enterprise.

For leaders, the moment of opportunity stands before us now. Those who continue to manage their GCCs with an outdated, cost-focused mindset will find themselves left behind by more agile competitors. But those who embrace this evolution, who invest in technology and talent, who foster a culture of true collaboration, and who empower their global centres with a strategic mission, will unlock a formidable source of competitive advantage. They won't merely optimise a business function; they'll engineer the future of their company from a global stage.

The transformation journey demands courage, vision, and sustained commitment. Yet the rewards justify the effort: accelerated innovation, access to world-class talent, enhanced operational resilience, and the ability to compete effectively in an increasingly complex global marketplace. The GCC of tomorrow won't just support your business; it will help define and drive it forward.

About Wiz

Wiz Digital is an Irish digital firm that transforms data, AI, and cloud into secure, scalable products and services, delivered at speed and engineered for tomorrow. We empower organisations by engineering secure, scalable innovation that unlocks growth, sharpens efficiency, and delivers lasting impact. Our agile, human-centric teams partner with the world's leading enterprises, embedding as true partners to solve complex challenges and celebrate shared wins. We help you build your next digital horizon with confidence and zero technical debt.