Smaller GCCs struggle as AI upends business processes

Many smaller and mid-tier global capability centres (GCC) are struggling to deliver strategic value that their headquarters had expected after years of operation.

- AVIK DAS

This has left them being just cost and delivery centres at a time when artificial intelligence (AI) is upending business processes.While still in the early stages, many such companies — which started GCCs with much fanfare amid announcements of headcount addition and establishing centres of excellence — are approaching consulting companies for help. It is to reset their operations after years of remaining stagnant or even mulling outright sale.

Sunil Padmanabh, an industry influencer and digital strategist, estimates that 18-20 per cent of GCCs will be AI-mature, with AI embedded into core workflows and real decision autonomy.

About 52 per cent will remain Al-active but constrained, with tools everywhere and limited structural impact. Around 30 per cent will stall or regress, remaining pilot-heavy, fragmented, and increasingly questioned.

“Momentum was mistaken for maturity. GCCs become strategic when ownership, authority and accountability actually move,” said Padmanabh.