Global Capability Centres (GCCs) have quickly transformed from cost-focused support units into strategic hubs that promote innovation, digital transformation, and operational excellence. These centres, established by global companies, unify various functions such as IT, finance, HR, analytics, and customer support. GCCs are no longer solely about reducing costs; they now play a vital role in enabling change and developing resilient, future-ready operating models. Let’s look at what is a global capability centre, its purpose and the models that empower businesses.
what is a global capability centre?
A GCC is often an offshore or nearshore entity, owned and controlled by a multinational enterprise, set up to deliver technology, operations, and business services across global markets. Unlike outsourcing, where third-party vendors take responsibility, GCCs ensure greater control, compliance, and alignment with the business strategy.
According to a Datam Intelligence report, the global GCC services market was valued at USD 172 billion in 2024 and is projected to surpass USD 400 billion by 2032. As a rapidly growing business strategy, GCCs have become centres of excellence for enterprises. Today, GCCs lead high-value capabilities such as AI/ML, cloud migration, data analytics, cybersecurity, and customer experience. Increasingly, they are recognised as strategic hubs that help enterprises innovate faster, manage risks effectively, and respond to global market demands.
purpose of global capability centres
GCCs are primarily designed and established to support businesses in expanding globally by creating scalable, resilient and future-ready functions. Their key objectives include:
Cost efficiency: Streamlining operations and optimising resources to reduce overheads.
Innovation: Driving digital transformation through AI, automation, and advanced analytics.
Control and compliance: Ensuring data protection, regulatory adherence, and governance within a captive model.
Talent advantage: Building diverse, skilled teams in offshore or nearshore locations.
Agility: Creating agility to adapt quickly to disruptions, risks, and evolving customer needs.
In short, the purpose of a Global Capability Centre is to act as a strategic growth engine that strengthens operations while unlocking innovation and value creation for the business.
GCC operating models explained
The success of Global Capability Centres (GCCs) relies on effective technology-driven talent strategies. These can be executed using different GCC operating models explained below, each customised to meet the specific needs and goals of the parent enterprise.
captive (Greenfield) model
The enterprise establishes and owns the GCC entirely, overseeing all operations, infrastructure, and governance. This model provides maximum control and alignment with global strategy but requires significant upfront investment, longer implementation timelines, and increased management involvement. It is often chosen by large, stable organisations aiming for long-term growth.
build-Operate-Transfer (BOT) model
A partner establishes and runs the GCC for an initial period before transferring ownership to the business. This lowers the risks of setup and early operations while allowing the parent organisation to focus on core business during the ramp-up. The model is especially attractive for companies new to offshore/nearshore centres.
build-Operate-Acquire (BOA) model
It is similar to BOT, but the business acquires the established centre outright after it matures. This provides flexibility for organisations that want ownership but prefer to avoid the challenges of setting up from scratch.
joint Venture (JV) model
The GCC is jointly owned by the business and a partner. This arrangement spreads out investment and risk while benefiting from the expertise of the partner. However, it can also introduce complexities in governance and decision-making. JVs are most effective for businesses expanding into new regions or markets.
assisted build model
The business owns the GCC from day one, but brings in external expertise for infrastructure, hiring, and setup. It is a middle ground between captive and BOT models, striking a balance between control and guided execution.
hybrid model
This model combines a captive GCC with third-party or offshore development centres, providing flexibility and scalability; for example, a GCC supported by an offshore development centre. It offers flexibility in scaling and cost optimisation while keeping critical functions in-house.
multi-location model
Instead of a single large centre, businesses distribute GCCs across multiple offshore and nearshore regions. This mitigates geopolitical and operational risks, enhances resilience, and taps into diverse talent pools. Hundreds of new GCCs were set up worldwide in distributed formats, reflecting the growing preference for hybrid and multi-location strategies.
future outlook of GCCs
The future of GCCs shows a clear shift from operational hubs to strategic drivers of innovation and resilience.
- AI and automation first: GCCs will integrate AI/ML, generative AI, and hyper automation to develop intelligent, responsive workflows.
- Distributed GCC strategy: Multi-location and hybrid setups will become the norm to reduce risk and improve resilience.
- Innovation ecosystems: GCCs will increasingly function as incubators for new ideas, collaborating with startups, academia, and cross-industry partnerships.
- ESG and sustainability: Future GCCs will prioritise environmental, social, and governance goals to comply with global sustainability standards.
how Infosys BPM can help
Infosys BPM has been named a Leader in the ISG Provider Lens™ 2025 Global Capability Centre Services report, supporting enterprises across the lifecycle of design, build, transformation, and optimisation. By partnering with Infosys BPM, businesses can design, build, scale, and transform GCCs into future-ready, innovation-led hubs that drive long-term growth and competitiveness.
