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Cloud & Automation: Changing CSPs’ OpEx outlook
In an era where businesses are driven by efficiency, innovation, and global expansion, Global Capability Centers (GCCs) have emerged as a critical enabler of enterprise transformation. Organizations worldwide are leveraging GCC services to enhance operational agility, optimize costs, and tap into specialized skill sets. Among the preferred destinations for establishing a GCC, India stands out due to its vast talent pool, cost advantages, and mature digital infrastructure.
These centers, often established in strategic offshore locations, serve as hubs for GCC services, delivering value through specialized expertise, advanced technology, and scalable models such as Build-Operate-Transfer (BOT) and Offshore Development Center (ODC) frameworks. With India emerging as a prime destination for GCCs, businesses are unlocking significant opportunities to address operational pain points and achieve sustainable growth.
Organizations seeking to optimize technology operations, accelerate digital initiatives, and build future-ready enterprises face significant hurdles, including:
Finding and retaining skilled professionals at scale remains a persistent challenge. GCCs in India provide a sustainable solution by offering access to highly skilled talent at competitive costs.
Traditional operational models often struggle to balance cost optimization with innovation. The offshore development center model enables enterprises to drive efficiencies without compromising service quality.
Rapid technological advancements demand a structured approach to integration, governance, and security. A well-structured GCC serves as a digital hub, ensuring streamlined operations and digital resilience.
According to a Deloitte-Nasscom report (2021), GCCs deliver 15%-20% additional savings over traditional outsourcing by centralizing operations and leveraging skilled offshore talent. The ODC model, in particular, enhances productivity by 20%-25% compared to conventional setups (ANSR, 2022). Additionally, GCCs help mitigate risks related to regulatory compliance and data security, offering a structured approach to managing complexity while providing scalability to meet evolving business needs.
Beyond cost optimization and operational efficiency, Global Capability Centers (GCCs) are becoming the foundation for digital ecosystem enablement. Enterprises are leveraging GCCs to build API-first architectures, enable platform-based business models, and accelerate partner-driven innovations across industries.
GCCs are facilitating enterprises in developing API marketplaces that enable monetization opportunities through open banking, telecom network APIs, and digital commerce integrations.
By centralizing fintech capabilities, GCCs support enterprises in launching banking-as-a-service (BaaS) offerings, embedded payment solutions, and digital lending models.
GCCs are powering retail commerce platforms, smart city initiatives, healthcare interoperability, and IoT-driven supply chains, transforming business landscapes globally.
With data regulations tightening across regions, GCCs ensure seamless compliance with global regulatory standards (e.g., GDPR, DPDP Act 2023) while enabling cross-industry collaboration.
Enterprises are increasingly embedding AI, automation, and cognitive technologies into their GCC operating models, driving efficiencies, intelligence-led decision-making, and hyper-personalized experiences.
GCC centers are deploying AI-powered chatbots, automated IT service desks, and predictive analytics models to enhance customer service, IT operations, and business workflows.
Leveraging RPA and AI, GCCs help enterprises automate high-volume tasks in finance, HR, and supply chain operations, reducing cycle times and human intervention.
By integrating AI-driven observability tools, GCCs improve IT service management (ITSM), proactive incident resolution, and network performance optimization for global enterprises.
GCCs are transforming into AI-CoEs (Centers of Excellence), enabling businesses to harness big data, automate analytics pipelines, and drive AI-led decision-making.
As AI-first enterprise strategies gain traction, GCCs are playing a crucial role in embedding intelligence across business functions, reducing costs, and improving operational agility-ensuring enterprises stay ahead in the digital-first era.
India stands out as a leading destination for establishing global capability centres - the country offers a robust ecosystem underpinned by a skilled talent pool, cost arbitrage, and a mature technology infrastructure. India has solidified its position as the leading destination for GCCs attributing to a unique combination of factors:
With over 1.5 million engineering graduates annually and a mature technology ecosystem, India offers one of the world’s largest and most skilled talent pools.
Operating costs in India are significantly lower compared to developed markets due to favorable real estate costs, competitive salaries, and advantageous exchange rates.
Policies such as the Digital Personal Data Protection Act 2023 have created a conducive environment for GCC operations by ensuring compliance and fostering innovation.
India hosts over 1,600 GCCs, employing more than 1.66 million professionals. This number is projected to grow to 1,900 centers by 2027, generating $60–80 billion in revenue.
To maximize the benefits of GCCs, enterprises often adopt structured models such as Build-Operate-Transfer (BOT) and Offshore Development Centers (ODC), each offering unique advantages.
The Build-Operate-Transfer (BOT) model delivers a low-risk entry strategy for organizations establishing GCCs. With zero capital expenditure and reduced short-term investments, BOT enables businesses to test and refine their digital priorities before committing long-term. Research from Everest Group (2024) notes that BOT adoption has surged, with 40% of new GCC setups in India utilizing this model, up from less than 10% two years ago. This approach ensures operational stability during the build and operate phases, with a seamless transfer once strategic objectives are met.
The BOT model enables enterprises to establish GCCs with minimal upfront investment while ensuring a structured transition to full control. This approach follows a phased lifecycle:
Establishing the GCC infrastructure, recruiting talent, and setting up processes aligned with business goals.
Managing operations to optimize efficiency, drive innovation, and ensure seamless integration with the parent organization.
Transitioning full control to the enterprise once the center reaches operational maturity.
According to Everest Group (2024), 40% of new GCC setups in India now leverage the BOT model, a significant rise from less than 10% two years ago. This model allows businesses to test and refine digital priorities before committing to long-term investments.
The Offshore Development Center (ODC) model drives efficiency by harnessing global talent and advanced technology. ODCs excel in optimizing supply chains, enhancing end-user experiences, and fostering innovation - all while delivering cost savings. Korn Ferry (2023) projects a global tech talent shortage of 85.2 million workers by 2030, yet India is expected to have a surplus of 245.3 million skilled workers, making ODCs in India a critical asset. These centers offer scalability and adaptability, with 90% of Indian GCC service providers hiring for niche skills and retraining talent (Milestone Technologies, 2022), positioning them as a cornerstone of the global capability centre strategy.
The ODC model provides long-term scalability and cost optimization by leveraging India’s deep technology expertise.
Key benefits include:
With a projected global tech talent shortage of 85.2 million workers by 2030 (Korn Ferry, 2023), India is expected to have a surplus of 245.3 million skilled professionals, reinforcing the significance of ODCs. Research by Milestone Technologies (2022) further indicates that 90% of Indian GCCs actively invest in hiring and reskilling niche talent, ensuring adaptability in an evolving market.
Torry Harris Integration Solutions specializes in helping organizations conceptualize, build, and operate high-performing GCCs tailored to their strategic goals. With deep expertise in operationalizing Build-Operate-Transfer (BOT) and Offshore Development Center (ODC) models, we enable enterprises to leverage global talent, streamline operations, and achieve cost-efficiency without upfront capital investment.
Aligning GCC initiatives with business goals while ensuring regulatory compliance and scalable growth.
Optimizing cost structures, enhancing service delivery, and strengthening digital capabilities.
Leveraging AI and advanced technologies to accelerate large-scale transformation and drive sustained innovation.
Establishing CoEs to drive continuous improvement, knowledge sharing, and competitive differentiation.
As businesses seek to enhance agility, scalability, and efficiency, Global Capability Centers continue to play a transformative role in enterprise strategy. By adopting structured GCC models and leveraging India's dynamic ecosystem, organizations can unlock significant value, accelerate digital initiatives, and establish a strong foundation for long-term growth.
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