The Growth of Global Capability Centers (GCCs) in the Financial Sector

This is the Amrit Kaal for Global Capability Centers (GCCs) across the globe, with the sector projected to expand rapidly and India emerging as a natural hub for multinational corporations (MNCs). 

GCCs are offshore or nearshore unit established by MNCs to support their global operations through technology, talent, and innovation. These centres have evolved from being mere cost centres to strategic entities that contribute significantly to expansion and business agility. GCCs in India are also slowly shifting towards diversification of operations and moving from data processing to knowledge processing. 

India is home to 1,700 GCCs, employing 1.9 million professionals and generating $64.6 billion in revenue as of 2024. With a projected growth of $105 billion by 2030 and 2.8 million people employed, this sector will drive India’s role as a global hub for enterprise operations and innovation. 

The pandemic was a massive inflection point for the financial services industry as many organisations had to completely shift their services online to establish a digital front. This meant going offshore for tech talent at scale that could build mobile and web applications. A lot of foreign banks then entered the Indian market and established GCCs to help them carry out their financial operations. Currently, GCCs are transitioning into the 4th wave of evolution as they focus on revenue generation, customer-centric business, navigate the Generative and Agentic AI paradigm, policy formulation and chart the course in untapped frontiers. 

Industry Trends for GCCs in the Financial Sector

Digital transformation is not only the bedrock of modern financial services, but also the need of the hour. Cutting-edge technologies in AI and ML are being used to enhance operational efficiencies, redefine customer experience and fortify risk management strategies. 

Financial institutions are also increasingly relying on cloud based platforms and services for better service delivery and real-time data insights. The decentralised architecture of blockchains is a major enabler for critical banking operations, supply chain finance and identity verification. 

GCCs in India are also building and implementing advanced cybersecurity frameworks with AI-driven threat assessment and zero-trust architectures to safeguard data and mitigate cyber threats. Critical functions like AML/KYC, credit risk advisory and regulator reportings are also being performed by GCCs in India, making them key business centers for MNCs. 

Banking GCCs in India play an instrumental role in providing personalised financial products based on real-time data analysis to align with the needs of the customer. Digital touchpoints through seamless omnichannel platforms are also being used to deliver unified and consistent customer experience. 

Indian GCCs are actively engaged in building and testing regulatory sandboxes to help these companies experiment with fintech solutions, while maintaining systemic stability. It has also been observed that GCCs are increasingly driving the organisation’s ESG agenda by leveraging their capabilities, innovation, and modern business practices. 

The Next Generation of GCCs

India has a rich culture of innovation, enabling startup ecosystems and supportive government policies- all of which are driving its leadership in the GCC space. Increasingly, Tier 2 and Tier 3 cities, offering incentives and favourable policies, are drawing significant investments and encouraging companies to establish their GCC operations beyond traditional metropolitan hubs. 

In the coming years, GCCs will have to double down on innovation to meet enterprise objectives and drive organisational success. By building a collaborative ecosystem, partnerships with academic institutions, research organisations and startups, GCCs can innovate better and faster. Indian GCCs are also evolving into ‘digital twins’, mirroring services provided in parent companies. Their intelligent business solution models are expected to align with global objectives and contribute heavily to sustainable competitive advantage.