Integration of AI, Data Analytics, and Automation Enables GCCs to move from Reactive to Proactive to Predictive Hubs: Kyndryl

Global Capability Centres (GCCs) in India have evolved from their initial roles as cost-effective operational units to now become major drivers of digital transformation and innovation. GCCs were originally established to provide basic support functions, but have evolved into unique technology hubs, playing an important role in India’s expanding digital ecosystem.

According to NASSCOM, more than 70% of GCCs in India are now involved in driving digital transformation initiatives for their parent organizations, thanks to the vast pool of talented professionals in India. Stemming from globalization, India’s appeal lies in its abundance of STEM graduates, particularly skilled in data science, cloud development, and related fields—ideal for GCCs prioritizing digital talent retention.

This vibrant workforce, coupled with a supportive ecosystem of startups and research institutions, positions India as a global leader in technology development. India’s digital infrastructure has seen significant improvements in recent years, and it ensures seamless connectivity which is essential for the smooth operation of GCCs.

The Indian government has also played a crucial role in fostering this ecosystem. Their responsiveness to industry feedback and proactive development of favorable policies in key areas such as R&D, Intellectual Property creation, and overall ease of doing business have significantly bolstered the trust and confidence of companies looking to set up or expand their GCC operations. As a result, GCCs are increasingly contributing to strategic decision-making and spearheading projects that enhance operational efficiency and customer experience, solidifying their role as essential partners in their parent companies’ growth and competitiveness on a global scale.

GCCs are beginning to play a pivotal role in solving product, engineering, technical, and other digital challenges, accelerating the digital capabilities of global organizations. GCCs allow companies to refine their core competencies, while these centers across other locations generate new ideas and expand the company’s footprint.

Technology is at the heart of the GCC model, emerging as a driver of innovation and efficiency that adds value. With the increased adoption of emerging technologies, these centers are transitioning from transactional and cost-optimized to strategic transformation hubs prioritizing innovation and value creation. Notably, the large-scale creation of actual use cases for Al/ML (particularly GenAl), Blockchain, loT, Cloud, and AR/VR has accelerated technological adoption significantly.

GCCs typically serve as the operational and technological backbone for businesses, rather than directly tapping into new markets. Their strength lies in the ability to harness diverse perspectives and specialized talent, which drives innovation and helps companies achieve greater success. GCCs are known for their wide economic reach and are projected to employ 2.6 million people in India by 2030. Between 2018-19 and 2023-24, GCCs have created over 600,000 new jobs, bringing the total to more than 1.6 million, with a projected hiring of 2.6 million people in India within the next six years.

GCCs must also have a strong people strategy and focus on developing the necessary competence and skills to attract and retain talent.

Language barriers, cultural nuances, and differing work practices can be potential hurdles, impeding collaboration for these overseas teams. This is why, cultural training practices, empowering local leadership, and having rigid guidelines are all essential to unifying the working environment. Around 48 percent of the GCCs look for strong local leaders with cultural fluency, industry experience, and strategic acumen to drive operational success, which is crucial to their smooth functioning.

Micro GCCs are more agile, scaled-down versions of traditional GCCs. Although smaller in scope and size, these centers are designed to deliver specialized services or drive innovation in focused areas. They can quickly prototype, test, and scale solutions, resulting in shorter product development cycles. Moreover, these can also be deployed with much lower costs than full-scale centers, while still contributing fruitfully to the parent organization. While traditional GCCs serve as comprehensive hubs managing functions like IT, finance, or customer support, Micro GCCs focus on specific, high-impact activities such as product development, R&D, data analytics, or advanced technology implementation.

This enables firms to adapt more quickly to changing market needs and technology improvements. While GCCs are indeed expanding and morphing into larger, dynamic roles, micro GCCs are also crucial as they act like a specialized service with deep, domain-specific knowledge.

By collaborating with startups and mid-market firms, GCCs gain access to niche expertise and cutting-edge technologies that may not be available to them in-house. New startups always bring fresh perspectives and contemporary solutions that can help expand the horizons of large, global firms. They also significantly accelerate digital transformation efforts.

Startups have a relatively leaner way of operations, which brings a more agile workflow, allowing GCCs to test and scale new initiatives more effectively, reducing the time to market for new products and services.

Enterprises and GCCs are looking at harnessing the enormous power of the start-up ecosystem through a host of engagement programs including accelerators. On the other hand, startups and IT firms associated with GCCs gain the ability to scale their operations and solutions globally, leveraging the networks and resources of multinational corporations.

Kyndryl is working with the largest OEM and partner ecosystem acting as a catalyst for the growth of GCCs and leverages our deep, decades-old expertise to bring value to these collaborations. By leveraging Kyndryl’s capabilities, GCCs can integrate innovative solutions more seamlessly, ensuring that technology aligns with their business goals. This synergy fosters co-innovation, driving growth and agility in the digital landscape.

GCCs have developed themselves as Centers of Excellence (CoE) for MNCs and narrowed their focus to key areas such as AI, engineering R&D, product development, and ownership. While GCCs have taken on an important role as data guardians, they are further equipped with Automation CoEs, which could play a key role in implementing system rules for data governance.

GCCs have kept pace with the rapid developments in AI and are now at the vanguard of investigating, testing, and building AI-centric solutions to optimize processes, boost efficiency, improve customer experience, and bring innovation. AI plays a huge role in threat detection systems. Analytics and AI-powered solutions assist in managing operational risks such as anomalies and fraud in financial transactions.

With this, GCCs have moved from a reactive to proactive to predictive mode now by utilizing the depth of data analytics and AI currently available to drive the user engagement experience and increase business value.

In summary, the synergy between data analytics, business analytics, and AI creates a robust framework for GCCs to enhance efficiency and foster growth, ensuring they remain agile and competitive in a rapidly changing business environment.