How GCCs are Now Driving Innovation and Strategic Value in Global Organizations

India’s GCCs have undergone a remarkable evolution, shifting from traditional cost-centric roles to becoming critical hubs of innovation and digital transformation. This transformation, driven by access to a skilled talent pool, advancements in emerging technologies, and a maturing ecosystem, has positioned GCCs as strategic assets for global corporations. In this interview with Amit Singh, Namita Adavi, Partner & Head – GCCs (India) at Zinnov, shares insights into how GCCs are redefining value creation, fostering technology leadership, and enabling organizations to navigate regulatory and operational complexities. From AI-driven solutions to startup partnerships, she reveals how India’s GCCs are setting new benchmarks in global business operations and strategic growth

How has the role of GCCs evolved from being a traditional cost center to becoming a hub of innovation and digital transformation? What factors drove this shift?

GCCs have been around for over three decades – the drivers have evolved as a function of the ecosystem gaining maturity, a stronger pool of techno-business leaders, deep domain knowledge, and the presence of players across the value chain. Firms initially set up with cost as a primary driver – which were leveraged through outsourcing and offshoring levers – including back-office operations, transactional services, staff augmentation work, and IT support. However, over the years – especially in the last 5 years (in the post-COVID era) – there has been an accelerated shift towards innovation, creating strategic value, and digital transformation.

Several factors have driven this evolution –

Access to Talent: The abundance of skilled talent in global hubs like India has enabled GCCs to take on more complex, innovation-driven roles, allowing organizations to execute cutting-edge projects in AI, Intelligent Automation, Data Analytics, Product Development, and now in Product Management. Given the industry has been around for 20-plus years, we now have seasoned technologists with deep expertise built over the years.
Technology Adoption: With advancements in Cloud Computing, AI, and other emerging technologies, GCCs have been able to shift from providing support functions to driving core business strategies. Often, GCCs act as the testbeds of exploring newer use cases across these technologies, which are then deployed across the larger organization.
Global Strategic Influence: As GCCs demonstrated success in operational excellence, their strategic influence expanded. They now play an integral role in contributing to organization-wide digital transformation agendas, product innovations, and improving time-to-market for HQs.
Ecosystem Maturity: The GCC ecosystem in India started around the same time as the IT ecosystem and the maturity of players, property consultants, start-ups, education ecosystems, government intervention and policies are all aligning to create a unique ecosystem that has firmly established India as the ‘GCC Capital’ of the world.

Can you provide insights into the diverse functions that GCCs support today? How are these functions driving strategic innovation and adding value to organizations’ global operations?

Today, while GCCs have a deep anchoring in tech, over 90% of all GCCs have evolved into multi-functional centers, becoming a true microcosm of the global organization. Today, GCCs have transformed from Product Development and Engineering R&D to Data Analytics, Supply Chain Management, Sales & Marketing, Legal Shared Services, HR Shared Services, Finance & Accounting Shared Services, Customer Experience Management, etc. As custodians and owners of all the functions across the organization, GCCs are able to create fundamental value by driving efficiencies, process innovation, and product innovation.

These functions are driving innovation across –

Technology Leadership: GCCs are leading initiatives in AI, Automation, Cloud Services, and Cybersecurity, helping organizations innovate rapidly. By driving it as a shared services function, there is a standardization and consistency that is being achieved, which in turn is driving up efficiencies and a downstream effect is shaving off costs.

Global Product Development: They are now owning end-to-end product development – from conceptualization, design, and development to delivery and outlining roadmap of new products and solutions that meet global market demands.

Data-driven Insights: With strong capabilities in data analytics and business intelligence, GCCs help organizations make informed strategic decisions that improve business outcomes globally.

Cost Efficiency: By consolidating functions like HR, Finance, IT, Procurement, and other administrative tasks into a centralized shared services center, organizations reduce duplication of efforts across different business units. This leads to reduced operational costs and economies of scale.

How do GCCs help organizations expand into new markets globally? What strategies do they employ to address cultural, regulatory, and operational challenges across diverse regions?

Indian GCCs are being increasingly leveraged as the gateway to the East. They act as localized hubs that provide deep insights into regional dynamics while maintaining a global perspective. Establishing GCCs across geographies helps companies to seamlessly scale operations, tap into specialized talent pools, and enhance their market reach.

GCCs also help organizations navigate complex regulatory landscapes – often well-versed in the legal, compliance, and operational challenges specific to their base market. The structure ensures that businesses can localize while maintaining global governance standards. This approach not only mitigates risks but also accelerates market entry, saving time and resources.

Operationally, GCCs focus on building agile, cross-functional teams that can quickly adapt to changing market dynamics. By integrating local talent with global best practices, they create a powerful blend of localized expertise with global scalability. This hybrid approach not only fosters innovation but also allows companies to swiftly respond to market shifts and emerging opportunities.

How are organizations leveraging micro GCCs—smaller, specialized centers focused on specific technologies or functions? What specific benefits have you seen in terms of agility and faster time-to-market?

A growing trend is the rise of smaller GCCs—not small in terms of headcount, but highly strategic in the value they bring to the table. In some cases, these centers are used as test beds for trust and experimentation, and in other cases, they are specialized centers that help the organization build new functional or technical muscle that enables accelerated outcomes. Often focused on specific technologies like AI, Advanced Analytics, or cutting-edge R&D, these centers enable rapid prototyping, testing, and launching of new solutions. This structure helps bypass traditional decision-making layers, giving companies a crucial edge in time-to-market.

Smaller GCCs – be it Nano / Micro GCCs – are intrinsically built for agility, with the option to scale. They often offer cost-efficiency, delivering impactful results without requiring extensive infrastructure. Larger GCCs are embracing this agility through Centers of Excellence (COEs), enhancing focus and innovation within their operations.

How are GCCs increasingly partnering with startups and mid-market organizations to drive innovation and agility? What benefits do these collaborations offer in terms of co-innovation, access to niche expertise, and scaling digital transformation efforts?

GCCs leverage different approaches to drive collaboration with start-ups –

Ecosystem outreach through hackathons, ideathons – often in the form of a competition
Accelerator, where the GCC provides business and technical mentorship – either with or without equity
Partner program, which is any commercial agreement focused on creating joint value
Corporate VC, where the GCC makes direct investments in the start-up, in exchange for equity
M&A, where the GCC acquires the start-up – this could be a strategic investment or even an acqui-hire where they absorb the full team.

Such collaborations are unlocking new opportunities for co-innovation, where GCCs are not just solving problems faster but are also unlocking newer solutions, which would not have been possible in isolation. Start-ups bring fresh thinking and niche expertise, especially in areas like AI, Intelligent Automation, or Blockchain, where agility is key. By partnering with them, GCCs are not only tapping into the technology prowess but also injecting agility and entrepreneurial thinking within its existing teams.

In what ways are GCCs leveraging emerging technologies like data analytics, business intelligence, and AI to drive data-driven decision-making and improve your operational efficiency?

Technologies like AI, Data Analytics, and Business Intelligence are transforming decision-making and boosting operational efficiency. Currently, according to a survey we ran in Zinnov, 15% of GCCs have advanced AI capabilities, and that number is growing every day. Many AI use cases are being driven from India, and metrics across productivity, customer experience, employee experience, and now even product revenue influence, are emerging. The Software & Internet sector leads the way, with over 29% of AI Centers of Excellence (COEs), focusing on areas like AI-based customer behavior analytics and AI/ML coding assistants to enhance R&D, sharpen customer insights, and speed up software development.

Sectors like BFSI and Automotive, and even Healthcare, are also strong adopters of technology. In BFSI, AI/ML-based financial services and real-time fraud detection are improving security and streamlining processes. In Automotive, AI is enhancing safety and convenience with innovations like driver monitoring systems and automated valet parking.

What sets these AI-driven efforts apart is their ability to deliver measurable value—whether by boosting customer satisfaction, optimizing workflows, or driving broader business impact. AI and Advanced Analytics enable GCCs to anticipate trends, respond quickly to market changes, and scale operational efficiencies globally.

Additionally, GCCs are co-innovating with start-ups and universities, leveraging specialized expertise to refine these technologies and keep ahead in digital transformation efforts.

What economic concerns, such as job displacement or wage pressures, are organizations encountering with the expansion of GCCs, and how are they addressing them?

No organization is immune to macro-economic challenges. GCCs, however, are strategic levers to access talent, build technology muscle, and even manage margins and cost for global organizations.

The expansion of GCCs unlocks significant economic value driven by cost efficiencies. And these are between 40-60% more in talent-rich locations like India, than other geographies. A rich talent pool with technology and domain experience, allows firms to be technologically competitive from early setup, and even when they are embarking on transformation scale. By focusing on innovation and specialized talent, GCCs are setting a high bar when it comes to compensation, becoming highly sought-after employers within the India ecosystem.

GCCs are also playing a pivotal role in the skill development of the Indian ecosystem. Not only are they investing heavily in upskilling and reskilling their workforce, but they are also giving them an opportunity to work on cutting-edge technologies. More importantly, the systemic influence on education is also happening, where global organizations are working with universities to co-define curricula, and undertaking sponsored research, and are even working to provide internships to help give students better real-world experience.