The Global Capability Center (GCC) ecosystem is transforming, moving beyond its traditional role as a cost-effective ‘insourcing’ model to become a hub for innovation, strategic decision-making, and digital acceleration.
For large and mid-sized Indian IT companies, this shift presents a critical inflection point—one that requires a mindset change from being service providers to becoming value-driven strategic partners. Indian IT companies that successfully embrace this evolution will not only future-proof their business models but also play a pivotal role in shaping the global enterprises of tomorrow.
The New Reality: GCCs as Innovation Hubs
Historically, GCCs operated as cost centers, focusing on back-office processes and IT support. Today, however, global enterprises are investing heavily in their captive centers, leveraging them for cutting-edge E&RD, automation, and AI-driven business solutions.
This evolution demands a corresponding shift in approach from Indian IT firms. The expectation is no longer just outsourcing and managed services—but rather collaborative partnerships, domain expertise, and an innovation-first mindset.
For Indian IT giants, this represents a unique opportunity to step up, helping GCCs drive digital transformation while co-creating next-gen solutions for global markets.
Strategic Partnerships: A Blueprint for Success
Forward-thinking IT firms have already started adapting to this shift—positioning themselves not as competitors to GCCs, but as integral enablers of their success.
A prime example of this strategic evolution is Infosys, which has secured a $300 million contract to set up a GCC for Lufthansa. Rather than treating the GCC model as a disruptive force, Infosys has aligned itself as a trusted partner, leveraging its deep digital expertise to enhance Lufthansa’s IT ecosystem.
This approach not only cements Infosys’ role as a long-term innovation partner but also sets a precedent for how Indian IT companies can work alongside GCCs rather than against them.
Happiest Minds: Mid-Sized IT Firms Making Their Mark
It’s not just the IT giants making strategic moves—mid-sized players like Happiest Minds Technologies are also recognizing the potential of the GCC ecosystem. The company is developing a GCC playbook, enabling it to offer specialized capabilities that align with the needs of global captives.
This shift highlights how mid-sized IT firms can differentiate themselves by focusing on niche expertise, agility, and tailored digital solutions—making them highly attractive partners for GCC-driven transformation initiatives.
The Road Ahead: Challenges & Opportunities
For Indian IT companies, the evolving GCC landscape is both a challenge and a massive opportunity. To remain competitive, firms must:
- Invest in Continuous Innovation – Building AI-driven, automation-first solutions tailored for GCCs
- Upskill & Reskill Talent – Bridging the capability gap in emerging technologies like cloud, cybersecurity, and data analytics
- Develop Industry-Specific Playbooks – Creating sector-focused solutions that cater to the unique needs of retail, BFSI, healthcare, and other industries
- Adopt a Partnership-First Mindset – Engaging with GCCs as long-term collaborators rather than transactional service providers
GCCs & Indian IT: A Future of Co-Creation
The rapid evolution of GCCs presents a defining moment for Indian IT companies. Those who embrace change, adapt to new business models, and forge strategic partnerships will emerge as leaders in the next phase of global digital transformation.
Rather than viewing the GCC boom as a competitive challenge, it’s time for Indian IT firms to see it for what it truly is—a chance to co-create, innovate, and lead on a global scale. The future is not about competition, but collaboration—and the companies that recognize this shift will be the ones driving the next wave of enterprise transformation.
Note: This article was originally published on GCC Pulse’s LinkedIn page and has been repurposed for the GCC Pulse website with significant updates and refinements.
