Redefining GCCs: Innovation, AI, and Service Provider Partnerships

Abstract

Global capability centers (GCCs) are evolving beyond cost-saving hubs to become engines of enterprise innovation. Yet they face a dual mandate: reduce costs while accelerating data-led, AI-enabled delivery. To resolve this, leading GCCs are transforming their approach to IT service providers. ISG research shows that over 80% of GCC leaders plan to engage new providers, and 60% are increasing their use of IT services. This paper details how to build strategic partnerships through co-creation models and outcome-based contracts to unlock the speed, scale, and resilience your enterprise demands.

Advance Modal Components
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Key Insights

The Dual Mandate

GCCs must balance cost optimization with rapid innovation, requiring new operating models and strategic partnerships to succeed in today’s volatile business environment.

Smart Outsourcing

Outsourcing is now a capacity release valve, enabling GCCs to redeploy top talent toward AI engineering, digital products, and customer experience innovation.

Ecosystem-driven Services

Providers now offer modular portfolios—from setup to optimization—helping GCCs scale faster, reduce risk, and embed innovation from day one.

AI and Analytics Expansion

Half of enterprises plan to expand GCCs into AI and analytics, using providers to access advanced talent and build next-generation centers of excellence.

About the Author
Santosh Jha
Senior Vice President and Head of the GCC, Tech Mahindra
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Santosh is a seasoned leader with 24years of experience driving innovation and growth. As Head of Global Capability Centre , SBU at Tech Mahindra, he leads the Charge in Solutioning and delivering cutting- edge digital innovations and AI-powered solutions for Global enterprises and their Global capability centers leading to achieve transformative growth and measurable business outcome.

Gaurang Pagdi
Principal Analyst, ISG

Gaurang brings over 22 years of experience in the Finance & Accounting (F&A) domain, having led delivery operations for industry leaders in Banking, Telecom, and E-Commerce. He has also served as a Digital Transformation Consultant with an F&A fintech, working with clients across diverse industries.Read More

Gaurang brings over 22 years of experience in the Finance & Accounting (F&A) domain, having led delivery operations for industry leaders in Banking, Telecom, and E-Commerce. He has also served as a Digital Transformation Consultant with an F&A fintech, working with clients across diverse industries. His expertise spans delivery excellence and business transformation, extending beyond digital transformation to encompass process and people transformation—offering a holistic approach to building future-ready businesses. As a Principal Analyst at ISG, Gaurang leads multiple research studies, including those on F&A, Workday ecosystem, Human Resources Outsourcing, and Global Capability Centers (GCCs). His research focuses on the intersection of customer experience, digital transformation, analytics, AI, and automation.

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