The increasing insourcing of core tech tasks-especially the top end, high-value work-may be leading to one of reasons for the current rot in the outsourcing industry, marked by a protracted slowdown and now mass layoffs.
Under the 'hub plus one' strategy, companies expand from their metro base to add a centre in tier-II cities to reduce the risk tied to over-concentration in one city.
As GCCs expand in India, the scope of finance roles is shifting beyond basic transaction management to include business partnering, procurement, financial planning and analysis (FP&A), and transformation initiatives.
Jayesh Ranjan, Special Chief Secretary to the Government of Telangana emphasized that from AI research to full-scale product development, Indian GCC teams are leading the global charge.
Experts say the shift can foster inclusive development, generate jobs beyond traditional hubs, and address the challenges of over-saturation and infrastructure pressures in metro cities.
Nearly 50 per cent of India's total GCCs belong to the IT-ITeS sector, followed by the banking, financial services and insurance (BFSI) sector, which accounts for a 17 per cent share.
This transition is fueled by factors such as geopolitical instability, rising operational costs, talent saturation in Eastern Europe, and India's cost-effectiveness and growing talent pool.
GCCs, which were once low-cost outsourcing hubs for global firms, have evolved over the last few years and are now used to support their parent organisations in multiple functions, including daily operations, finance, and research and development.
Around 95% of Global Capability Centres (GCCs) in India are currently concentrated in just six cities, posing a challenge to efforts aimed at inclusive regional growth, a senior government official said on Monday.
The announcement was made by Makoto Haketsu, Global Chief Information Officer of Eisai Pharma, during his visit to GITAM Deemed to be University on Wednesday.
Companies like Genpact, WNS, & Sutherland are ramping up partnerships with GCC, offering end-to-end services from set-up to AI-led transformation, as hybrid and BOT models gain traction.
Vaishnaw said under the IndiaAI Mission, 6,000 more GPUs (graphics processing units) are expected to be added to the common compute facility, taking the total to 40,000 from 34,000 empanelled currently.