GCCs in India embrace AI to drive innovation: Study

Global Capability Centres (GCCs) in India are now in a steady state of transformation. Over 70% of them are actively investing in artificial intelligence (AI) & GenAI to keep their innovation engine in top gear, according to a study conducted by NTT Data and The Mainstream.

“Our survey reveals that over 70% of India’s GCCs are actively investing in GenAI, with 35% ranking it as their top technological priority. Cloud and Cybersecurity follow closely second with 15% of GCCs focusing on these foundational technologies,” the study titled - A Renaissance in Innovation Driving Growth and Sustainability, noted.

India is already home to around 1900 GCCs employing two million professionals, accounting for 17% of the total global market. The study estimates that this number could reach 2,500 by 2030 and the employee strength expanding to 4.5 million. The market size is expected to rise from the current level of $65 billion to $110 billion by 2030.

The report highlighted that nearly 40% of GCCs position innovation as their main value proposition. This is also reinforced by the fact that nearly 45% of all GCCs are using AI either in core functional processes, across the enterprise or by designing AI-native processes. Around a third of GCCs that have reached the innovation stage have implemented AI on an enterprise scale, while 12% of innovation-driven GCCs cite that they are designed with AI at their core. “This is very strong evidence that embracing AI is one of the key steps in creating scope for innovation.”

For GCCs in India, the next clear strategic direction is towards GenAI integration, with 35% marking it a top priority and actively investing in its deployment. GCCs are transforming into sophisticated AI strategy execution engines, translating theoretical AI into measurable business outcomes, the report said.

However, there are challenges associated with this AI journey, as the study noted that simply investing in AI tools is insufficient if the data foundation remains flawed. Furthermore, the necessity of maintaining and integrating extensive legacy IT systems diverts valuable resources, both budgetary and human, away from strategic modernisation and cloud native initiatives.

The transformation of the GCCs in India has a changed narrative, which has shifted from costs towards strategic value creation responsible for mission-critical functions, including core product engineering, advanced analytics, and end-to-end digital transformation initiatives.

Though maturity levels vary, as the study indicated that nearly 40% of India’s GCCs have evolved to innovation hubs in FY25, which is an increase from just 18% in FY13. This is a process moving from a cost efficiency-led setup phase to a process efficiency-led steady state and eventually becoming an innovation hub.

According to the study, 60% of companies have shifted focus to Innovation as they complete a decade in India. Over 50% achieve steady state within two years of inception. This is also a sign of the strengthening of the ecosystem where there is sharing of best practices and a sizeable leadership pool.

Also, there is a direct correlation between investment and innovation. The study highlighted that 64% GCCs that have annual tech budgets over $50 million are innovation hubs, while those on a lower budget remain in the setup phase.

The path towards AI-driven innovation is not without its challenges, as the study highlighted the stumbling blocks - technology budgets and autonomy, talent availability and skill-depth, and Indian leadership’s global influence. “The ecosystem needs more product visionaries, technology strategists, and innovation leaders who can translate ambition into global-scale impact,” it said.

Overall, the story continues to remain positive as the study said, “This rapid inflow of new centres and talent solidifies India’s role not just as a centre for capability, but as an engine for resilient enterprise growth.”