India’s GCCs shift gears to become AI powerhouses

India’s Global Capability Centres (GCCs) are undergoing a profound transformation—shifting from cost-efficient back offices into strategic engines of artificial intelligence (AI) and digital innovation for global enterprises. India now hosts over 1,800 GCCs - captive units set up by a multinational to manage its technology and business operations- employing close to 2 million people, and is poised to contribute 3.5% to the country’s GDP by 2030.

According to EY India’s GCC Pulse Survey, nearly 70% of GCCs are actively investing in generative AI (GenAI), while 78% are upskilling employees to align with this transformation. From predictive maintenance to autonomous decision-making systems, AI is steadily redefining how these centres deliver value.

“GenAI will have an impact across nearly every domain,” said Sunil Gopinath, CEO of Rakuten India, which manages 30–40% of the Japanese conglomerate’s global technology operations. The Bengaluru-based GCC has developed SixthSense, an AI-driven platform that analyses infrastructure, applications, and user experience data to predict and resolve issues proactively—reducing downtime and improving efficiency.

From pilots to production-scale AI

Across sectors—from retail and pharma to financial services—GCCs are moving up the AI value chain. Japanese pharma major Takeda Pharmaceutical Company recently launched an innovation capability centre in Bengaluru to drive AI-led digital transformation across its global network. Similarly, Walmart’s Indian GCCs are developing everything from Agentic AI to core infrastructure solutions. “Our India teams are building everything from Agentic AI to core infrastructure,” said Suresh Kumar, Chief Technology Officer and Chief Development Officer at Walmart Global Tech.

The demand for AI talent has surged in tandem. The latest GCC Tech Talent Landscape report shows a 5–7% rise in hiring between July and September 2025, driven by the need for GenAI, data science, cloud engineering, and site reliability expertise. AI and data science roles alone saw an 8% jump in recruitment, alongside rising demand for FinOps specialists, cybersecurity experts, and platform engineers.

Many GCCs are also taking full ownership of products and business outcomes, moving beyond traditional support functions. However, nearly 95% of GCCs remain concentrated in six major Indian cities, prompting government efforts to encourage expansion into Tier-II locations.

Despite the growing momentum, AI maturity remains uneven. Industry benchmarks indicate that only 8% of GCCs have achieved full innovation maturity, while most are still experimenting with pilots rather than deploying at scale.

“Even as GenAI offers huge potential, navigating India’s complex tax, labour, and data protection regulations remains a critical challenge,” said Subir Mehra, Partner and GCC Sector Leader – Financial Services at EY India. The survey also highlighted rising cybersecurity risks, with growing vigilance around data breaches and a push for advanced security intelligence frameworks.

Employee readiness is another bottleneck in this AI-led transition. “Many employees still aren’t fully comfortable using AI tools. Training is essential to help them integrate AI effectively into daily work,” said Gopinath.

“The next big test for GCCs is operationalising AI responsibly—balancing speed with control,” added Nilesh Thakker, President of Globalisation Excellence at Zinnov.

The Road Ahead

Despite these challenges, experts remain optimistic about India’s expanding AI footprint. “For global enterprises, India’s GCCs are hubs for strategic innovation, AI platform development, and access to world-class engineering talent,” said Mehra.

As GCCs transition from experimentation to scaled AI adoption, success will hinge on embedding AI deeply into core business functions and delivering measurable global impact from India. For the country, this evolution marks a decisive shift up the technology value chain—from service delivery to intellectual property creation and leadership in global tech transformation.

Industry estimates suggest that India’s GCC market could reach $99–105 billion by 2030, employing over 2.4 million professionals. Experts believe the next two years will be pivotal as GCCs move from AI pilots to production-grade deployments—determining whether India cements its position as the world’s strategic innovation hub.