GCCs as Centers of Excellence: Driving Innovation Across Borders 

In today’s hyper-connected and technology-first business landscape, Global Capability Centers (GCCs) are no longer support units; they are becoming the Centers of Excellence (CoE) that fuel global innovation, digital transformation, and enterprise-wide value creation. Companies across industries and geographies, are looking at GCCs as Centers of Excellence to move from operational efficiency toward strategic value creation. 

India has become the epicentre of this change. With over 1,700 GCCs, employing 1.9 million professionals, and contributing USD 64.6 billion in annual revenue (FY2024), the GCC in India has evolved into a hub of strategic enablement, innovation, and leadership. 

A Maturity Framework for CoE Evolution within GCCs 

Organizations that succeed in embedding CoE within GCCs typically follow a three-stage evolution framework: 

1. Foundational Capability – Focused on operational excellence and service delivery. 

2. Integrated Ownership – Assumes end-to-end ownership of platforms, products, or functions. 

3. Strategic Orchestration – Leads enterprise-wide innovation initiatives, aligned with global KPIs. 

This evolution isn’t linear—it’s iterative and influenced by talent readiness, digital maturity, and leadership vision. 

Reframing India’s Advantage: Beyond Scale 

India is frequently credited for its STEM talent and cost advantages, but true differentiation lies in its evolving value proposition: 

• Leadership Density: India now houses 6,500+ global leadership roles, with CXO-level decision-makers managing global charters. 

• Innovation Intensity: Over 500 Global Capability Centers (GCCs) in India are now dedicated to AI and Machine Learning, reflecting the country’s commitment to advancing future-forward technologies. 

• Execution Agility: India-based teams can rapidly scale operations particularly in emerging domains like GenAI, quantum computing, and ESG compliance. 

• Instead of simply scaling teams, GCC setup in India now involves building innovation clusters that cut across product development, data science, and customer experience. 

Navigating Risks: GCC Evolution to CoE   

While the rise of CoE is undeniable, enterprise leaders must also weigh these constraints: 

• Talent Fatigue in Tier-I Cities: Wage inflation and attrition in Bengaluru and Hyderabad are pressuring margins. 

• IP and Compliance Exposure: As GCCs take on R&D and data-sensitive work, governance frameworks must evolve accordingly. 

• Innovation Saturation: A “Centers of Excellence in everything” approach dilutes value. Enterprises must prioritize CoE measurable business impact. 

What Success Looks Like: Real-World Centers of Excellence Outcomes 

• A European industrial GCC in India developed an AI platform that delivered $6–7 million in initial savings, with a projected $40–45 million in impact over five years.  

• A US-based semiconductor major transitioned from a cost center to a full-stack innovation hub, owning chip design and IP development from India. 

• In the automotive sector, a German OEM’s India GCC now leads autonomous driving systems and digital cockpit solutions globally. 

These cases are no longer isolated success stories—they represent the new operating model of global enterprises. 

Building with Intent: Making CoE More Than a Buzzword 

To ensure Center of Excellence delivers tangible value and not just symbolic intent, enterprises must design them with clear purpose, accountability, and strategic alignment. 

• Strategic Mandates tied to business metrics 

• Autonomy and Integration within enterprise structure 

• Real-Time KPIs such as customer NPS, cycle time reduction, and IP generated 

This ensures that Centers of Excellence within GCCs are not symbolic but truly transformative and accountable. 

Lead the Future with GCCs as CoE  

With the digitisation, decentralisation, and data-driven nature of global value chains, GCCs as CoE provide businesses with a robust and highly effective growth lever.  

When establishing a GCC in India, the focus should be on developing a next-generation GCC CoE rather than merely creating another offshore division.