In an exclusive interview with CXOToday, Meenakshi Thakar, Partner at TRANSEARCH India—specializing in Professional Services, BPO, and Analytics—shared insights into the evolving landscape of Global Capability Centres (GCCs) in India.

GCCs’ Strategic Shift Over the past few years, India’s GCC sector has undergone a remarkable transformation. Once established primarily as cost-saving hubs for multinational corporations, these centers have evolved into strategic assets that drive innovation and digital transformation. Initially focused on cost efficiency, GCCs now play a critical role in product development, research and development (R&D), and high-level decision-making processes. This shift from cost centers to strategic partners has elevated their status within global enterprises, making them vital contributors to business success.

Embracing Advanced Technologies The adoption of cutting-edge technologies such as artificial intelligence (AI), machine learning, cloud computing, and robotic process automation has been instrumental in this evolution. These tools not only boost operational efficiency but also position GCCs as leaders in offering innovative solutions to global challenges. Today, GCCs are recognized as centers of excellence in digital transformation, further reinforcing their strategic importance.

Talent Development and Hybrid Work Models The rapid technological advancements in GCCs have also transformed the talent landscape. As the need for specialized skills in areas like AI, cybersecurity, and data science increases, GCCs are prioritizing continuous learning and upskilling initiatives. The rise of hybrid and remote work models has added flexibility to the workplace, helping GCCs attract and retain top talent, ensuring they remain at the forefront of innovation.

Expanding Beyond IT Roles Beyond traditional IT and back-office functions, GCCs are now venturing into high-value services, including product development and customer experience management. This expansion into industry-specific expertise—particularly in sectors such as healthcare, finance, and retail—has made GCCs indispensable to global business strategies. Their focus on research and development, often in collaboration with startups, universities, and research institutions, has fostered a culture of innovation and contributed to the creation of intellectual property, enhancing the competitive edge of their parent companies.

Automation and Cybersecurity Automation and cybersecurity have become increasingly crucial within GCCs. The integration of AI and automation tools has streamlined operations, while a growing emphasis on cybersecurity ensures that GCCs can securely manage sensitive data, adhering to global data protection standards.

Geographical Diversification As part of their growth strategy, many GCCs are expanding into tier-2 and tier-3 cities in India, such as Coimbatore, Visakhapatnam, and Jaipur. This geographic diversification allows them to tap into a broader talent pool while reducing operational costs. These developments underscore the role of GCCs as strategic enablers of business growth, innovation, and global competitiveness.

Talent Recruitment and Management India has become a global hub for technology, finance, and business services, attracting numerous international companies to establish GCCs. As the demand for talent rises, companies are implementing a Workforce Strategy Model, focusing on four key areas: building talent from reputed institutes, upskilling employees, recruiting senior-level professionals for niche roles, and leveraging external partnerships for short-term projects. In response to the talent shortage, many GCCs are investing in in-house training programs and collaborating with finishing schools to develop specialists for critical roles.

Leadership and Talent Management To stay competitive, GCCs mirror the culture of their parent companies, which fosters productivity and engagement. Proactive leadership hiring involves seeking adaptable leaders skilled in emerging technologies, building diverse teams, and implementing succession planning. Strategic talent management, focusing on continuous learning, employee experience, and data-driven decision-making, is crucial. Building a strong employer brand by crafting a compelling Employer Value Proposition (EVP) and highlighting corporate social responsibility (CSR) and sustainability efforts are essential. Additionally, promoting cross-cultural competence within global teams can help integrate global talent effectively.

Technological Advancements and Industry Impact Technological advancements have reshaped the industry, particularly post-2020. The digital revolution has accelerated remote work capabilities and transformed GCCs into strategic transformation hubs. This shift goes beyond technology; it’s about leveraging progress to empower organizations and drive global innovation. By embracing technologies like AI, edge computing, and synthetic biology, GCCs are streamlining service delivery and positioning themselves as leaders in research and development. However, the rapid pace of change presents challenges, including a talent shortage in specialized areas like AI and cybersecurity, and navigating complex global data protection regulations.

Future Trends in Leadership and Talent Management As the business environment evolves, leadership hiring and talent management are experiencing significant shifts. The demand for leaders who can navigate complexity and drive growth is intensifying, particularly in digital transformation, data-driven decision-making, and diversity. Companies are increasingly focused on creating agile, inclusive, and innovative leadership teams that can thrive in a rapidly changing landscape. As Indian GCCs continue to evolve, they are likely to further enhance their capabilities, embrace new technologies, and expand their roles in the global marketplace.