The Future of Global Capability Centers (GCCs) in 2025 – Key Trends & Innovations

Introduction

Global Capability Centers (GCCs) have emerged as a key driver of India's growth in services exports. As of today, India hosts 1,700 out of the 3,200 GCCs worldwide, and this number is expected to rise significantly in the coming years. A recent report by Tholons highlights major emerging trends that will shape the future of GCCs, including AI adoption, workforce transformation, hybrid work models, and cost optimization.

Let’s explore the key trends driving the evolution of GCCs in India and globally in 2025 and beyond.

1. The Rise of New Skillsets in GCCs

GCCs are no longer limited to IT services; they are rapidly expanding into AI, data science, and high-value digital operations.

✅ AI, Data Science, and Cloud Computing – Currently, 20-25% of GCC work involves these fields, and this is expected to increase to 40-50% by 2030. ✅ Expansion Beyond IT – Non-IT roles such as UX design, HR, and marketing are growing, rising from 10-15% to 25-30%. ✅ AI Banking & Retail – Major corporations like HSBC, JPMorgan, Target, and Walmart are moving their core AI and digital operations to India.

2. Shift to Agile Workspaces & Hybrid Models

Traditional large-campus GCCs are evolving into hybrid and flexible workspaces, improving both cost efficiency and productivity.

📌 GCCs are expanding into Tier-2 cities like Jaipur, Coimbatore, and Bhubaneswar with a hub-and-spoke model. 📌 Hybrid work culture is becoming the norm, with flexible setups replacing traditional office spaces. 📌 Companies like Microsoft are offering 200 sqft per employee, significantly more than past norms, ensuring a better work environment.

3. Cost Optimization – The Driving Force

Cost savings remain a primary reason for offshoring GCC operations to India.

✅ Fortune 500 Shift – Over 35% of Fortune 500 companies are offshoring their SG&A functions (HR, finance, procurement, sales) to India. ✅ $210 Billion Market Opportunity – India is expected to capture 40% of this offshore market. ✅ 50-70% Cost Savings – Salaries in India and the Philippines remain significantly lower than in Western countries, driving major offshoring investments.

4. Government Incentives & GCC Investments

Governments worldwide are offering incentives to attract GCCs. India is actively rolling out policies to retain its stronghold in the sector.

📌 Countries like Malaysia, Costa Rica, and Colombia are offering tax breaks and subsidies to attract GCC investments. 📌 Indian states (Karnataka, Telangana, Gujarat, Maharashtra) are introducing GCC-friendly policies, including streamlined regulatory approvals and infrastructure support. 📌 The ease of doing business and world-class infrastructure in India continue to make it a preferred GCC destination.

5. GCCs as Innovation Hubs

GCCs are moving beyond cost savings to become global innovation powerhouses.

✅ India’s share in global innovation output is set to rise from 5-7% to 15-20% by 2030. ✅ Major companies like Nvidia, Philips, GE Healthcare, and Airbus are designing core products and digital tools in India. ✅ Semiconductor firms are developing chip modules within India, enhancing its tech innovation ecosystem.

6. The Rise of Nearshoring – India’s Competition

As companies diversify their operations, nearshoring is emerging as a global trend.

📌 85% of GCC RFPs (Request for Proposals) now include a second location, such as the Philippines. 📌 Latin America and Eastern Europe are witnessing 20% and 15% growth in GCC investments, respectively. 📌 Geopolitical stability and time zone advantages are making companies explore multiple GCC locations beyond India.

Conclusion – The Future of GCCs

GCCs are transforming from cost-saving centers into AI-driven innovation hubs. The next decade will see growth driven by:

✅ Hybrid work models enabling workforce flexibility.
✅ AI and automation reshaping GCC operations.
✅ Government incentives and regulatory ease boosting investments.

India will continue to lead the GCC space, but rising competition from Latin America and Eastern Europe means Indian GCCs must focus on AI, innovation, and value creation beyond just cost savings.

🚀 The future of GCCs is AI-powered, innovation-driven, and globally interconnected