A version of this article was originally published in ET CIO.
India’s global capability centres (GCCs) — offshore hubs set up by multinational firms to run critical business functions — are entering a new phase of maturity. What began as a cost and talent arbitrage play has evolved into a multi-billion-dollar ecosystem driving innovation, digital engineering and enterprise transformation for global organizations. As GCCs take on higher-value mandates, the traditional service-provider model is no longer enough — a new form of partnership is emerging, in which providers help build, run and scale strategic capabilities rather than simply deliver projects.
Why India's GCCs are now expected to own innovation and value
The evolution is already visible in how leading GCCs are evolving and in how they engage with service providers. Our recent research with Nasscom on GCC-service provider partnerships revealed that India’s GCC model is entering its most consequential phase. Today, they are stepping into what many leaders describe as global hubs acting as true transformation engines, running engineering, digital customer journeys, marketing operations and even product and P&L ownership from India.
The expectations from global headquarters (HQs) have shifted. Three demands now dominate: deeper strategic integration with the business; autonomous value creation — owning innovation pipelines and P&Ls, not just tasks; and continuous rapid innovation using technologies such as AI and generative AI. In short, GCCs are now expected to build strategic capability quickly, at scale, and at the right cost. Incremental fixes will not be enough. As one leader told us, standing still is no longer a neutral choice — it is a competitive risk.
Some mature GCCs have built those capabilities entirely in-house over time. For many others, the faster route is to rethink how the GCC and HQ work with India’s technology service providers. That is where the idea of the “next-gen GCC” comes in: an integrated setup where HQs, GCCs and providers jointly design, run and scale the capabilities that matter most to the enterprise, rather than operating as separate silos or as simple buyer–vendor relationships.
In a next-gen GCC, providers act as extensions of the centre, not substitutes for it. They bring specialized talent, tools, and accelerators, while the GCC anchors the vision, strategy, and ownership. When done well, this model improves alignment with HQ priorities, broadens access to future-ready skills, strengthens governance, and accelerates modernization without sacrificing control over culture or compliance. The guardrails are real: dependency, rigid processes and tech lock-in, but they can be managed through thoughtful design and clear accountability.
Partner deep or fall behind — the new GCC growth playbook
So, what does this model look like in practice? There is no single template, but four approaches are emerging. First, a provider helps build and run a centre and, once it is stable, either hands it over or keeps operating it. This is a useful option when companies need speed and low risk.
Second, a joint venture in which the company and provider actually co-own the centre and share investment, governance and accountability.
Third, a talent-led model, where providers place small specialist teams in areas such as AI, data, or cybersecurity directly inside GCC squads to fill capability gaps.
Fourth, providers and GCCs jointly drive major transformations, with providers’ fees linked to whether the business sees real results, not task completion.
Across all these approaches, the GCCs that perform best tend to work in similar ways. They begin by agreeing on a clear goal and a small set of shared success measures. They make sure everyone knows who is responsible for what, and they organize teams so each group can take ownership of a complete piece of work rather than just fragments. Their governance is simple and predictable: day-to-day teams that keep work moving, regular check-ins to solve issues early, and periodic senior-level reviews to ensure the work continues to deliver real business value. They also focus heavily on people and technology, building a reputation that attracts hard-to-find talent, integrating new staff to create a single team culture, and using automation, cloud, and data tools as foundations for faster innovation rather than afterthoughts.
The path to this future looks different depending on where you start. Greenfield GCCs can design boldly from day one: set clear mandates, build unified teams, make early build–buy–partner choices and pick partners based as much on culture as on capability. Brownfield centres need a reset rather than a tweak to revisit the vision with HQ, decide what to retain and rebuild, or partner to simplify fragmented vendor landscapes and move towards “fewer, deeper, broader” partnerships.
India’s GCC story has already reshaped the global services industry, but the next three to five years will decide who leads the next chapter. Scale and talent are now table stakes. The edge will lie with enterprises that embed service providers as true partners, co-own outcomes, and use next-gen GCCs as engines of innovation and resilience. For India, this is a once-in-a-generation chance to move from back office to global design studio for the modern enterprise.
The message for business leaders is simple: partner deep, move fast, and shape the next era of global enterprise from India.
Read the original piece here.