From Captives to Hybrids: GCCs enter a new phase of growth in the AI era

Global capability centres (GCCs) are shifting from captive, headcount-driven operations to AI-led hybrid ownership models, with Tata Consultancy Services (TCS) this week confirming a multi-year deal to take over and transform all Indian GCCs of US consumer electronics retailer Best Buy into AI-Native Capability Centers (AICCs) while retaining the existing headcount. Industry executives say the move — an acquisition-led ownership model paired with AI transformation — signals a broader reorientation of how multinationals source talent and capability.

"Large players in the services cohort, already pivoting towards GCC-focused verticals and capability-aligned service models, stand to benefit from the growing acceptance of this new model. The AI wave and the current phase of rapid mainstream evolution are a shot in the arm for those grappling with the limitations of the traditional man-hour-based services model," said Francis Padamadan, CEO of specialist staffing firm Xpheno.

Context and industry reaction

Executives and analysts highlight several drivers behind the shift: the rise of generative AI and automation, the need for centres that combine innovation with delivery, and a distributed talent market that favours flexibility. Rishi Das, Co-Founder and CEO of IndiQube, framed the change as strategic: "This AI-led push towards centres of intelligence, innovation and global capability gives India a strategic edge." His remarks point to GCCs evolving from cost and capacity hubs into nodes of competitive advantage for parent enterprises.

At the same time, skeptics warn that not all GCCs are suited to the new model. Ramkumar Ramamoorthy, Partner at Catalincs and former CMD of Cognizant India, cautioned that success will depend on leadership and capability, not just ownership. "These new-age GCCs, which focus on AI-driven innovation, need a different breed of practitioners, leaders and advisors, namely those who have navigated multiple technology shifts and built innovative businesses from the ground up, rather than those relying on a lift-and-shift approach centred on headcount-driven growth," he said.

• Transaction example: TCS will transform Best Buy’s Indian GCCs into AI-Native Capability Centers while retaining staff.
• Strategy trend: Enterprises are adopting a Core-plus-Flex approach to sit up managed workspaces across micro-markets and cities to access distributed talent pools.
• Capability test: Analysts emphasize assessing GCCs on purpose, authority and measurable operational value rather than size alone.

"An in-house GCC should be assessed based on its purpose and performance. A CIO should be confident in a centre that has meaningful responsibilities and demonstrates measurable operational value. Such an assessment must establish whether the centre possesses the authority and capability required to deliver on the enterprise’s expectations," said Sanchit Vir Gogia, Chief Analyst and Co-Founder of Greyhound Research.

Outlook

As services firms and enterprises experiment with acquisition-led conversions and hybrid ownership, the GCC landscape is likely to become more heterogeneous: some centres will be spun into service-provider ecosystems, others will be strengthened as strategic innovation hubs, and many will operate on blended models that mix captive control with external capability. The immediate challenge will be ensuring leadership teams with experience across multiple technology cycles, the right incentives to pursue innovation rather than scale, and workplace networks — the Core-plus-Flex footprint — that enable collaboration across dispersed talent pools. Industry participants say those elements will determine whether GCCs deliver value beyond headcount in the AI era.