The days of Global Capability Centers (GCCs) in India being mere back-office cost centers are officially over. A new report confirms what many of us in the industry have sensed for years: India’s GCCs are no longer focused on cost arbitrage but are now firmly engaged in innovation arbitrage, creating new, material value for global enterprises. This is a massive, structural shift that demands immediate attention from every global CEO.
The latest EY GCC Pulse Survey is less a status update and more a mandate for action. The key takeaway is not just that 83% of GCCs are investing in GenAI, but that a substantial 58% are actively investing in Agentic AI. This move from General AI experimentation to Agentic AI adoption, where systems can independently plan and execute complex tasks, is the definitive signal that these centers are rapidly becoming autonomous decision and innovation hubs, not just delivery teams. This is the moment to stop consulting India’s GCCs and start truly empowering them.
The data strongly backs this claim:
Investment in Autonomy: The leap to Agentic AI, with another 29% planning to scale next year, shows a commitment to automating high-value processes across customer service (65%) and finance (53%). This isn’t just about reducing headcount; it’s about re-engineering value chains for autonomous intelligence.
The Innovation Engine: Two-thirds (67%) of GCCs are creating dedicated innovation teams. This demonstrates a systematic effort to move ideas from the drawing board in India directly into global operations. As EY’s Arindam Sen notes, this is the “new chapter” where R&D and core functions co-exist.
Global Influence: GCCs are no longer waiting for instructions. Over half (52%) hold shared accountability for global decisions, while critical responsibilities like global strategy leadership (45%) are being driven from India. This proves their maturation into key collaborators and strategic shapers.
Some might argue this is just hype, or that a 9% attrition rate still signals talent challenges. However, the drop in attrition from 13% to 9% shows a stabilization in the workforce, reinforced by a clear strategic focus on reskilling (71%) and hiring for niche skills (63%) like AI/ML. The risk isn’t in capability; it’s in the governance gap. The survey notes that only 7% of centers have a fully embedded cybersecurity Center of Excellence. As these centers take on greater autonomy and global decision-making, this moderate cybersecurity maturity level poses a serious risk to the entire enterprise.
The message is unambiguous: Global enterprises must adapt to this shift or fall behind.
- Stop treating GCCs as an offshore resource. They are now Strategic Decision Centers that require full-ownership mandates and budget autonomy for their core functions.
- Invest in Governance, Immediately. The rush to Agentic AI cannot outpace the need for robust cybersecurity and responsible AI governance. This is the single biggest threat to this new model’s long-term success.
- Redesign the Workforce. The focus must shift from simply hiring to AI-fluency. Investing in upskilling on GenAI (81%) and deep domain expertise must become a non-negotiable budget priority.
The future of global operations is here, and it is being built in India’s GCCs. Their ability to deliver “innovation arbitrage” is now the enterprise’s greatest competitive asset. It is time for global firms to fully embrace this evolution and give these centers the operational freedom they have earned.
