Sourcing & Procurement

Unlocking innovation – how global capability centers are revolutionizing sourcing and procurement

We are exploring how global capability centers (GCCs) are evolving from cost-saving units into strategic hubs driving innovation, efficiency, and sustainability in sourcing and procurement. Riya Nehra, S&P Solution Design Head & Khalid Kureshi, Sr. Practice Engagement Manager at Infosys BPM, shares insights on how GCCs are leveraging AI, digital tools, and global talent to unlock transformation and long-term growth.

Podcast Audio Transcript

Mimi: Hello listeners, this is Mimi; thank you for tuning in to yet another exciting and informative podcast from us at Infosys BPM.

Today, we’re exploring a transformation that’s shaking up sourcing and procurement, other than AI. Here’s a headline to get us started: Forecasts suggest that procurement functions within GCCs could quadruple in value by 2032. What’s driving this explosive growth, and what does it mean for global sourcing strategies?

To talk about this, we have here with us Riya Nehra, Solution Design Head and with her is Khalid Kureshi, Sr. Practice Engagement Manager. Welcome both. How are you doing today?

Khalid: Thanks, Mimi. It’s a real pleasure to join you today.

Riya: I’m doing very well, Mimi. Thank you for having me. It’s certainly an exciting time for Procurement organizations.

I know that we are going to focus on GCCs today but when we talk about transformation in procurement, two shifts stand out as truly seismic.

One is AI – which is fundamentally changing how procurement works, how decisions are made and how value is unlocked.

Other is the rise of GCCs or Global capability centers, which are transforming where procurement happens and who does it.

What is interesting is that these shifts operate at different layers of the ecosystem- AI is the capability and intelligence layer, and GCCs are the talent and operating model layer. But they are also deeply connected, and this intersection is what makes this conversation really exciting!

Mimi: Such a great thought to begin with, Riya. Coming back to GCC, let’s start with the basics, what exactly are GCCs and how did they come about?

Khalid: Great question, Mimi. Global capability centers started emerging in India in the late 1990s and early 2000s, when global companies recognized the country’s skilled but cost-effective workforce. Back then, the focus was on cost-arbitrage in downstream or transactional work. Then somewhere in mid 2000s and later, companies started to realize that global talent pools can be leveraged for advanced skills, not just cost advantage. Focus shifted to upstream tasks, analytics, and digital operations. And now GCCs act as Innovation Hubs or CoEs, driving innovation, digital transformation, and bringing in real business value. They are leveraging Agentic AI to transform the way things are done.

Mimi: Interesting. So, GCCs are no longer just back-office centers, which they used to be back in the day. Can you tell us how big is the GCC market today and why procurement leaders should pay attention?

Riya: The market is huge, Mimi. And it’s growing tremendously fast. There are more than 3000 GCCs worldwide today. I am referring to an EY study which says that the overall GCC market is projected to reach about 413 billion US dollars by 2030. There is another study by SNS Insider, which states that in procurement and supply chain areas alone, we are looking at growth from 46 billion to 208 billion in 10 years, at an annual growth rate of around 17%.

The trajectory is clear, GCCs are evolving from cost arbitrage and transactional support centers to strategic and innovation knowledge hubs that pull in domain, engineering, AI, analytics, right talent and more. Procurement functions benefit directly from access to this ecosystem and GCCs based models will be central for growth in the upcoming years.

Mimi: Oh! Those growth projections are massive. So, what’s really driving this shift from cost-saving centers to strategic hubs? And how does that play out in sourcing & procurement specifically?

Riya: Mimi, the two key advantages given by GCCs are agility and innovation. Today, GCCs are hubs of skilled talent working with AI, machine learning, cloud, and data analytics. They are now experimenting with new digital tools and methods, helping companies scale solutions faster while staying competitive.

Khalid: Let me add to that from procurement standpoint.

As you know, procurement has really transformed over the years. GCCs now manage advanced functions like procurement analytics, category management, strategic sourcing, vendor negotiations, and risk management. And all this is done leveraging AI and new technologies. So, by consolidating procurement into GCCs, companies not only achieve cost savings, they streamline processes, improve spend savings, and enhance user experience.

Mimi: It sounds like technology is at the heart of this transformation. Let’s get specific: How are AI and digital tools changing procurement in GCCs?

Riya: That’s a great question, Mimi. Today, AI-driven procurement systems can actually do a lot more than just automate tasks. They help with things like predicting sourcing needs, managing tail spend, running autonomous sourcing, and delivering much deeper spend insights.

And what’s interesting is that nearly 80% of new GCCs are now being set up with advanced AI capabilities from day one, which really puts them at the heart of digital transformation.

Mimi: Now that we have a clear picture of how GCCs operate, the next big question is: How can service providers like Infosys not only help set up these centers, but also take the lead in running them as strategic, high impact operations?

Khalid: Service providers typically support GCCs in two ways. The first is an assist to build model, where they act as consultants, helping design the operating model, governance, and specialized centers of excellence, while the client runs the GCC. This is lower risk, highly customized, and allows a quicker setup, usually within 18–20 months.

The second is the BOTT model - Build, Operate, Transform, and Transfer. Here the provider sets up and leads the GCC end to end, transforms the operations, and hands it back to the client when the desired maturity is achieved. The advantage of the BOTT model is that Providers can truly leverage their scale, domain knowledge, and AI capability to transform at speed.

Riya: To give you an example – Infosys is helping a Global industrial gases organization set up and scale its GBS in India, delivering a procurement transformation covering people transition, multilingual capability, automation, digital command center visibility, and joint governance, with successful multi country go lives across APAC, EMEA and a clear roadmap for scale and stabilization.

Mimi: Amazing, Riya, so you are saying it’s not just about efficiency, it’s also about innovation. What kind of measurable benefits are companies actually achieving?

Riya: The numbers are impressive. Organizations are reporting a 30–50% reduction in operational procurement costs, 40–60% faster sourcing cycle times, and about 80% savings in transactional processes through automation. These figures are according to studies by NASSCOM.

Khalid: In addition to that, Mimi, procurement staff are freeing up half of their time from transactional work so that they can focus on strategic initiatives. This combination of efficiency and value creation is why GCCs are seen as engines of transformation.

Mimi: Those benefits are very compelling, Riya and Khalid. As you know sustainability is the future. Operations that focus on sustainability are what modern businesses need. How are GCCs driving ESG outcomes in procurement?

Khalid: GCCs are helping companies incorporate environmental, social, and governance (ESG) factors into procurement strategies. They’re adopting green practices, improving transparency, and leveraging analytics to create eco-friendly supply chain. So, GCCs thereby are contributing to enable long-term, sustainable growth.

Riya: I agree, with GCCs, sustainable procurement becomes scalable. They enable continuous supplier monitoring on ESG parameters, standardized compliance and data driven decision rather than one-off sustainability initiatives.

Mimi: To wrap up, what’s the biggest takeaway about GCCs that you can give to our listeners?

Riya: GCCs have moved far beyond being cost-saving entities. They’re now strategic sourcing powerhouses, driving innovation, compliance, sustainability, and competitive advantage.

Khalid: For companies that embrace this model, GCCs will be the key engines of value creation and long-term success.

Mimi: Thank you both for joining us today. The discussion was so full of insights.

Riya: Thank you, Mimi. It was a pleasure to be part of this podcast.

Khalid: Yes, it was indeed a pleasure, Mimi. Thank you.

Mimi: Dear listeners, if you enjoyed our podcast today, please don’t forget to subscribe to it on the platform of your choice; our podcasts are available on Apple Podcasts, Spotify, and several others. Please don’t forget to share and like it on social media.

Also, if you have any queries, do reach out to us through the Infosys BPM website – www.infosysbpm.com. Once again, thank you for tuning in, stay safe and sharp. This is Mimi signing off. Have a great day!