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Our take
As global capability centres (GCCs) evolve into strategic partners for their headquarters, they are unlocking both cost efficiencies and innovation gains. Rajesh Ojha, Dheeraj Gangrade, Abhijit Majumdar and Sayantan Chatterjee unpack how harnessing the IT function can amplify value creation for GCCs.
As technology leads to business model reinvention, the IT arms of GCCs are leading the charge – transforming business processes, driving innovation, enabling growth and securing competitive advantage. Their portfolios now include higher-value services such as business process management (BPM), engineering research and development (ER&D) and information technology (IT). Our latest survey1 confirms that leaders from both GCCs and their HQs see IT as the linchpin for future value creation. But to maximise this potential, they must address three critical challenges: rising cost of digital transformation solutions, increased demand for artificial intelligence (AI) solutions and escalating cybersecurity threats.2 Seizing opportunities amidst these challenges demands robust IT capabilities – a key strength of today’s transformative GCCs.
Adopting a GCC model for IT operations can be particularly beneficial for organisations that operate on a large scale and in multiple regions. This is especially relevant in a world where new value pools are emerging and industry boundaries are shifting. Businesses are entering new domains of growth centred around human needs such as how we make, build, move, feed, care, connect and compute, fund and insure, govern and serve, and fuel and power with ecosystem partnerships and cross-sector collaboration acting as key enablers for this transition. Such industry reconfiguration amidst technological disruption, shifting customer needs and climate change are necessitating a relook at traditional operations and functions, including IT, to better align them to business objectives.
Traditionally, IT was treated as a non-differentiating factor focused mainly on minimising costs and providing internal support. There was little emphasis on innovation. IT systems were often fragmented and IT functions outsourced wherever possible. Over time, IT morphed into a shared service, enabling GCCs to provide centralised IT services across the organisation by consolidating IT resources and processes.
Today, GCCs serve as transformation hubs, delivering end-to-end services, and owning key decisions across technology, architecture and processes. They operate as autonomous IT entities – strategic engines for innovation and product ideation.
Figure 1: Evolution of the IT function from a cost centre to growth driver
Source: PwC analysis
Over the past few years, the number of GCCs providing IT services has grown significantly. According to a 2024 report, India has the largest base of 17% of global technology capability centres.3 Faced with stringent IT budgets and macroeconomic pressures, global companies are increasingly turning to their GCCs in India to carry out high-impact technology functions.4 The aim is to contain costs while driving technological innovation. Global leaders often consider the cost of operating a GCC to be lower than that of engaging the services of traditional technology firms.5
“Our IT services organisation has been a game-changer, leveraging specialised teams to drive value. Through streamlined application support, robust cybersecurity measures, data-driven insights, and infrastructure management, we’ve achieved enhanced operational efficiency, reduced risk, and informed decision-making. By harnessing the collective expertise of our specialised teams, we’ve optimised IT operations, accelerated innovation, and delivered scalable solutions that support Terumo’s global growth and commitment to delivering exceptional healthcare solutions.”
Figure 2: IT as a catalyst for value creation in GCCs
Source: PwC analysis
Rationalise and consolidate applications, data and infrastructure
Rationalise and consolidate applications, data and infrastructure
Rationalise and consolidate applications, data and infrastructure
Figure 3: Value maximisation opportunities enabled by IT in GCCs
Software and applications
Cybersecurity and risk management
IT services delivery enhancement
Analytics and data governance
Business continuity and disaster recovery
Architectural frameworks
Source: PwC analysis
Initially, the IT arms of GCCs were focused on business enablement, cost control, solution support and maintenance. The focus has gradually shifted to innovation, product-centric strategies, agile app development, and end-to-end value chain enhancement – transforming IT services from efficiency enablers to innovation accelerators. That explains why GCCs are a powerful North Star model for the chief information officers (CIOs) of large geographically diverse enterprises.
The model is especially beneficial for organisations, as this integrated approach to managing technology-led capabilities empowers CIOs to pivot from routine operations to high-impact transformation initiatives. It fuels growth, positions technology as a core driver of competitive advantage and enables faster response to market shifts through the following:
CIOs can therefore rely on the IT function in GCCs to provide the relevant tools and requisite resources needed to harness technology across business functions, driving a competitive advantage in a rapidly evolving business landscape.
“At Orange India GCC, our IT services arm drives digital transformation across global operations through mature technical capabilities and cutting-edge solutions. We’ve evolved into a strategic innovation hub that accelerates time-to-market for critical applications while delivering measurable impact to our group and customers worldwide.”
The paradigm shift from shared services centres (SSC) to GCCs enabled organisations to unlock the potential of IT services as a driver of business strategy. While SSCs often operate in silos and are transactional in terms of service delivery, GCCs focus on cross-functional integration and collaboration to optimise processes and leverage global expertise. Rather than being organised as a single function handling discrete transactions, IT serves as a common service interface aligned with business function outcomes, leading to growth.
Figure 4: Paradigm shift from SSCs to GCCs
Source: PwC analysis
“At Reckitt GCC, our commitment to cutting-edge IT solutions drives a culture of innovation and delivering exceptional services to business teams globally.”
The growth of IT service arms within GCCs has been primarily fuelled by the following key factors:7
The high availability of science, technology, engineering and mathematics (STEM) talent in India has enabled agile operationalisation of IT in GCCs.
Major global organisations have a laser focus on enhancing their technology landscape in India. This has increased the number of employees in GCCs significantly.
Global organisations are looking to centralise their technology ecosystems in India, moving a significant chunk of global engineering activities to the country.
The availability of skilled AI/machine learning (ML) professionals in India has helped power innovation through dedicated AI/ML CoEs.
Cost benefits and evolving talent pools across Tier-2 and Tier-3 cities in India have resulted in the setting up of new GCCs, alongside existing GCCs in Tier-1 cities.
Multiple state governments in India are providing various incentives 8,9 to drive investment through the establishment of GCCs. Some of these incentives include stamp duty exemption or reimbursement on purchase or lease of land, office space or buildings; capital subsidy and refund of state GST paid on purchase of capital goods; interest subsidy on loan taken for constructing and setting up infrastructure; grant-in-aid for setting up CoEs to foster R&D as well as innovation; operational expense subsidy on lease, bandwidth expenses and cloud service costs; electricity duty exemption for five years; and reimbursement of quality certification fee incurred for setting up GCC operations.
“Our GCC is at the forefront of global innovation – driving advanced AI, digital solutions and product development. We deliver strategic value beyond cost savings, accelerating transformation, fostering a culture of excellence and enabling the organisation to maintain a competitive edge in a rapidly changing digital landscape.”
As GCCs support global operations, it is imperative to adopt a standardised model to deliver services. These services are monitored and measured against various benchmarks for optimisation and efficiency.
The IT capabilities provided through GCCs span lifecycle management with a focus on transitioning from a traditional plan, build and run model to an end-to-end service-based approach that includes designing, developing, operationalising and improving value streams.
Figure 5: IT capabilities in GCCs
Figure 5: IT capabilities in GCCs
Source: PwC analysis
Originally set up to serve their parent conglomerates, GCCs are going beyond their initial mandate, widening their scope to provide outbound IT services to businesses in related industries. Some of the ways GCCs have achieved that include:
GCCs leverage technologies such as AI, cloud computing, data analytics and cybersecurity to provide product development and innovation services. A case in point is a global FinTech company that set up its CoE in India in 2021 to play a vital role in strategy, growth, innovation and customer experience enhancement for its clients worldwide.
Offering similar services to external organisations with minimal additional overhead costs has opened new revenue streams for the IT functions of GCCs.
As the IT divisions within GCCs have developed specialised skillsets, these centres are seeking opportunities beyond their parent organisations to effectively leverage their talented workforce and offer competitive services to external clients.
By offering services to external clients, GCCs enhance operational efficiency and reduce service costs through economies of scale, thereby boosting profitability.
Countries such as the UAE and India have formulated their digital economic strategies to foster the expansion of their digital economies. This development opens new avenues for GCCs to diversify their offerings and meet the growing demand for digital services, including AI, cloud computing and data centre operations.
India currently accounts for 5–7% of global innovation output, which is projected to surge to 15–20% by 2030. GCCs are expected to play a central role in this growth.10 As innovation hubs supported by a robust IT function, GCCs are playing an integral role in new product and service development.
Examples abound. An aerospace giant gets its digital tools and solutions for aircraft design developed in India.11 The Bengaluru-based GCC of a Japanese conglomerate built a payment platform for it and manages the entire value chain of the digital product, be it user experience, adding new features, deciding strategy or back-end operations.12
The focus on innovation has positively impacted the target operating model of IT service arms in GCCs in several ways:
From handling execution and monitoring, the target operating model now takes the lead in planning and design, which includes data-driven planning, IT service design, strategic alignment and governance. This enables service delivery based on the needs of business functions and in line with the financials defined for the services.
As GCCs work across geographies and lines of business, they often face data breaches and regulatory compliances. This necessitates the inclusion of a security and audit function in the target operating model for risk mitigation and cybersecurity preparedness at all stages of service delivery.
As the ownership of service delivery falls on IT in GCCs, mechanisms such as key performance indicator (KPI) tracking and customer feedback loops help in ensuring that IT service delivery is aligned with customer expectations across lines of business and conglomerate entities.
With the IT function in GCCs expanding its capabilities – from software development to cloud management – it is becoming a preferred partner for technology-led initiatives within the group. To strengthen this role, IT arms within GCCs are establishing governance boards that foster collaboration across business units and CoEs. These boards ensure CoEs remain agile in responding to market shifts while aligning with the business group’s global compliance standards. This enables the delivery of tailored, high-impact services across geographies.
The CoE model therefore focuses on building expertise in technologies such as robotic process automation (RPA), cloud computing, generative AI (GenAI) and robotics. A case in point is a global leader in enterprise resource planning (ERP) platforms which has built a GenAI co-pilot to augment user interaction with its suite of solutions through its GCC in India.13 Another Bengaluru-based GCC of a global retailer has applied AI to suggest real-time substitutes for unavailable products, perform inventory forecasting and personalise recommendations for its user base.14
“Qualcomm’s GCC in India has evolved into a powerhouse of innovation – seamlessly integrating cutting-edge R&D with global strategy. By harnessing India’s deep tech talent, AI-driven capabilities and a culture of collaboration, the centre consistently delivers transformative solutions that accelerate Qualcomm’s global vision and create measurable value for our headquarters.”
As GCCs have matured, they’ve evolved from traditional IT outsourcing to captive models, and now to strategic insourcing – ensuring greater quality, consistency and a sustained competitive edge across business lines. Other factors such as costs, technological advantage and productivity also come into play when deciding between insourcing and outsourcing.15
Organisations need to strike the right balance between insourcing and outsourcing, where control of operations with strategic alignment is driven by insourced teams, while vendors provide a technological advantage, mitigate supply chain risks and manage routine operations. The growing shift towards insourcing can be attributed to:
Insourced teams are better positioned to customise solutions for business lines according to business goals, thus providing a competitive edge.
In-house control over service quality, technology and system operations ensures that solutions are developed as per needs and can be replicated across business lines, reducing inefficiencies and system redundancies.
Insourcing creates a readily available talent pool which is accustomed to organisational culture and works with agility to respond to market conditions.
The IT services arm of a GCC can help pivot its IT cost centre to a profit centre. This transformation can bring higher accountability, transparency and process standardisation, while fostering innovation through CoEs and expanding access to critical skills.
Two considerations for setting up the IT arm within a GCC:
It is crucial to ensure that the IT vision of the GCC aligns with the broader strategic objectives of the organisation. Embracing design principles in sync with these objectives can enable the IT services arm in GCCs to become a pivotal player in the organisation.
The following are select foundational design principles for the IT services arm in GCCs:
Design principles
Imperatives for IT in GCCs
Innovation led
Rationalisation and consolidation
Business partnerships
Focus on business growth and agility
Standardisation and innovation
Value-driven sustainable model
By adopting high-impact design principles, the organisation can achieve benefits such as:
Optimised resource utilisation
Synergy and cost benefits
Enhanced operational efficiency
Service-oriented structure
Access to expertise
Standardisation across IT verticals
Sustainable value creation
Smooth change implementation
Accelerated innovation
Scalable GCC operations
Growth and agility
Key elements for analysing location feasibility include:16
Availability and scalability of talent plays a significant role in deciding the location of the IT services department of a GCC. For sustainable operations, it is critical to ensure that the right skills are available to meet the organisation’s current and future needs while also mitigating personnel attrition risk. Collaboration with educational institutions, government support and organisational policies (including training and mentorship) are key components which drive talent availability at a location.
At present, India has close to 2,975 GCC units employing 1.9 million people.17 Karnataka accounts for the largest share of the workforce, with 35% spread across more than 875 GCCs. The state boasts over 37% of senior IT professionals and 44% of mid-level IT professionals in India.18
Managing talent is critical for any GCC that emphasises availability, capability and employability of resources. A case in point is a leading global professional services company with capabilities in cloud, digital and security. Its GCC setup in India offers continuous learning initiatives to ensure its workforce is tuned into the latest technology advancements. Another leading multinational investment bank and financial services company provides certification training in cybersecurity, data analytics and other cutting-edge financial technologies to its GCC employees in India.
The ability to innovate at scale is driven by opportunities presented by the maturity of the ecosystem in which an organisation operates. Based on business strategy, an organisation should look at availability of a robust vendor network, headquarters, major contractors and nearness to educational institutions when selecting a feasible location.
India already boasts an innovation ecosystem which includes startups, university accelerators, R&D centres and equipment suppliers that can complement GCCs in driving technological advancements. GCCs in India can unlock significant innovation opportunities by entering into strategic collaborations with India-based startups. They could harness its tech-ready talent pool and capitalise on government initiatives. The government has rolled out initiatives such as earmarking INR 500 crore for a CoE in AI for education as well as five national CoEs for skilling focused on areas such as robotics, cybersecurity and AI.19
Our research also highlighted that partnering with startups to integrate localised innovations into organisational frameworks and processes is a critical priority for HQ and GCC leaders across both product and service-based groups.20
Optimising and rationalising operational costs is a primary concern when selecting the location for setting up IT services in a GCC. A study indicates that global organisations can save approximately 65% on cost with a team based in India when compared with the United States.21
GCCs can thus consolidate their operations in a single location to achieve economies of scale, reduce overhead costs and centralise decision-making. PwC India enabled the GCC of a leading FMCG company to optimise costs by identifying opportunities for application rationalisation, license optimisation and vendor consolidation. The team also identified areas for the involvement of multiple vendors to streamline costs.
Moreover, favourable regulatory and government policies can streamline operations by enabling consolidation into a single location, strengthening data management capabilities. To sustain long-term success, businesses must also invest in a compelling employee value proposition to retain top talent. Without strategic planning and adaptability, companies risk unexpected overheads, leading to bottlenecks and operational inefficiencies.
Long-term growth and sustainability are a function of the market in which an organisation operates. Geopolitical stability and global economic relations are vital to ensure that the market remains conducive to growth.
According to global rating agency Moody’s Ratings,22 India’s internal growth drivers, low dependence on goods trade and a sizeable domestic economy place it in a relatively better position than other emerging markets to deal with the US tariffs and global trade disruptions. In June 2025, in its latest Global Economic Prospects report, the World Bank upheld its forecast for India’s GDP growth at 6.3% for FY26, underlining that the country will maintain the ‘fastest growth rate among the world’s largest economies’.23
To mitigate concentration risks, companies are increasingly setting up their second and even third GCC in Tier-2 cities. In response, India is rapidly ramping up infrastructure in these locations to support seamless operations and cost efficiency. While Bengaluru remains a primary GCC and startup hub, cities like Ahmedabad, Pune, Vadodara, Mangaluru, Coimbatore and Chandigarh are seeing a growing GCC footprint.24
We offer a multitude of services – from design and its operationalisation to strategy development for digital transformation and expansion – to help organisations set up a strong and well-equipped IT services wing within their GCCs.
We conducted the strategy and IT operating model review for a GCC of a global medical device manufacturer to identify the areas for expansion of its capabilities. Our team also recommended design principles for the future state of its IT operating model. The following are PwC India's technology advisory services for GCCs:
Figure 7: PwC India’s technology advisory services for GCCs
Source: PwC analysis
Assess digital maturity for IT in GCCs based on five verticals – digital, strategy, process and performance, governance, and people.
Evaluate vendor performance.
Drive vendor management agenda through a robust governance structure.
A new chapter for IT services in GCCs
India has emerged as the hub for IT delivery enabling value-led innovation in GCCs. The next frontier of growth for IT services in GCCs will come from delivering value-based outcomes, owning product and strategic roadmaps and building at scale.
Strategic imperatives for IT services in GCCs:
IT services in GCCs today have gone beyond being just a part of the software development lifecycle to becoming platform leaders and product owners driving an agile mindset across the organisation.
IT services in GCCs are deploying data science models and intelligent automation to enable smarter decision making for business leaders and functions.
IT services in GCCs are transitioning into innovation hubs, bringing in new technologies in AI/ML and cloud which enable cost and resource optimisation through automation across business functions such as HR, finance, and procurement.
As GCCs advance along the maturity curve, partial alignment between them and their headquarters can hinder value creation – a trend highlighted in PwC India’s recent research.25 To unlock their full potential, businesses must adopt a GCC-first mindset, recognising these centres as hubs of innovation and value-driven talent, not just offshore support units.
Investing in strong local leadership and embedding governance by establishing clear roles, responsibilities and escalation matrices can drive long-term strategic impact. With strong government support, a rich talent pool and growing capabilities in emerging technologies, Indian GCCs are well-positioned to thrive amid global uncertainties and drive long-term enterprise transformation.
GCCs are becoming valuable centres for innovation and value creation. They are leading in areas such as AI, ML and other emerging technologies. This shift from focusing on operational excellence to generating quantifiable value helps them to manage global uncertainties effectively.
GCCs have been set up not only in metropolises but also in Tier-2 and Tier-3 cities in India. This minimises the risk of a single event impacting all the centres simultaneously. The Indian government has been promoting the development of these cities, improving their infrastructure and offering financial incentives. This dispersion is a strategic move that aims to mitigate the risks associated with concentration in a single location.
The GCC model in India is built on the fundamental principles of resilience and adaptability. GCCs have showcased their ability to navigate disruptive events such as the COVID-19 pandemic by transitioning quickly to remote work models and ensuring operational excellence.
The Indian government and industry bodies are actively supporting the country’s GCC ecosystem through initiatives such as India AI Stack and Skill India Digital. This helps in upskilling of workforce in emerging technologies such as AI, ML, IoT and blockchain.
The Indian Government has clearly defined regulatory guidelines of transfer pricing, Special Economic Zones (SEZs) and Software Technology Parks of India (STPI), labour laws and data protection that organisations must comply with before setting up their GCCs in India.
Managing the workforce is critical for GCCs. The presence of a diverse and talented workforce and the government’s investment in upskilling are ensuring a steady pipeline of talent for GCCs within the country.
Chandra Shekhar Rawat, Vishnupriya Sengupta, Rupam Kundu, Ruchika Uniyal, Ashish Sachdeva, Divyanshu Sinha