Redefining the Boundaries: What is a GCC anyway?
19 Apr 2025 / 03 min read
That the Global Capability Centre (GCC) landscape in India has undergone a significant transformation over the years is a no-brainer. What was once a nascent industry, focused primarily on cost arbitrage and back-office operations, has matured into a sophisticated ecosystem that drives innovation, technology, and business excellence.
The traditional definition of GCCs in India has been centred around captive centres set up by multinational corporations (MNCs) to leverage the country’s cost and talent arbitrage. These centres typically focus on solving problems for the global operations of the parent company, taking advantage of India’s vast pool of skilled professionals and favourable business environment.
However, with the rapid expansion of the repertoire of services that captive centres are offering for their global operations, the distinction between GCCs and traditional IT services companies is becoming increasingly blurred.
The question that arises is: should IT services and consulting companies offering Software as a Service (SaaS), Platform as a Service (PaaS), Infrastructure as a Service (IaaS), and other cloud-based services to clients across the world be considered GCCs? Should centres in India of companies like Accenture, Capgemini, or Infosys be defined as GCCs in the broader sense?
The answer to this question is not straightforward. On one hand, GCCs have traditionally been associated with captive centres set up by MNCs to support their global operations. These centres are typically focused on delivering specific business outcomes for the parent company, leveraging India’s talent pool and cost advantages.
On the other hand, IT services companies like Accenture, Capgemini, and Infosys have set up centres in India that not only serve their global clients but also drive innovation, technology, and business excellence.
These centres are often indistinguishable from traditional GCCs in terms of their focus on technology, innovation, and business outcomes. They employ similar talent, use similar technologies, and deliver similar services to global clients. In many cases, these centres are also hubs for innovation, research, and development, driving growth and competitiveness for the parent company.
Given the evolving nature of the GCC landscape, it may be time for NASSCOM, the industry body, to revisit the definition of GCCs in India. A broader definition that encompasses not just captive centres but also IT services companies with a significant presence in India could be more reflective of the current reality. This would acknowledge the contributions of IT services companies to the GCC ecosystem and provide a more comprehensive understanding of the industry’s scope and impact.
Moreover, such a definition would also recognize the changing nature of work and the blurring of lines between different types of organizations. With the rise of cloud-based services, artificial intelligence, and automation, the distinction between GCCs and IT services companies is becoming increasingly irrelevant. What matters is the delivery of high-quality services, innovation, and business outcomes, regardless of the organizational structure or model.
