India’s GCCs adopt AI to move beyond cost-cutting roles

I ndia-based Global Capability Centres (GCCs) are rapidly evolving from traditional cost-saving units to strategic innovation hubs for multinational companies. According to the EY (Ernst & Young) India GCC Pulse Survey 2025, 58 per cent of GCCs are already investing in Agentic AI, a type of AI capable of making independent decisions and executing tasks, rather than merely providing recommendations. Another 29 per cent plan to scale such AI over the next year.

Agentic AI is enabling GCCs to automate complex processes across critical business functions. Customer service leads the way, with 65 per cent of centres leveraging AI to improve response times, personalize interactions, and enhance customer satisfaction. Finance (53%), operations (49%), and IT/cybersecurity (45%) are also adopting AI to optimize processes, reduce errors, and strengthen security. Meanwhile, the adoption of business intelligence tools has risen to 86 per cent, and focus on data strategy has jumped to 67 per cent, highlighting the growing importance of data-driven decision-making in India-based GCCs.

To drive innovation, 67 per cent of GCCs have established dedicated innovation teams and incubation programs. These teams test new ideas, scale successful pilots globally, and contribute directly to multinational strategies. This has allowed India-based centres to take on larger global responsibilities. Currently, 52 per cent share accountability for global decisions, 26 per cent are formally consulted, and 20 per cent are on track to take full ownership of certain global functions. Key responsibilities now handled from India include global strategy leadership (45%) and leadership pipeline development (35%).

Talent strategy is also shifting significantly. About 71 per cent of GCCs are reskilling staff, 81 per cent are upskilling employees in Generative AI, and 63 per cent are hiring for niche skills in AI, machine learning, data engineering, and business intelligence. This approach minimizes the risk of layoffs, as employees are being redeployed to higher-value roles rather than replaced. Attrition has dropped from 13 per cent in 2023 to 9 per cent in 2025, reflecting stronger retention measures.

Budget allocations further reflect this shift. GCCs are investing heavily in technology and transformation (25%) and talent development (23%), ensuring teams are equipped for AI-led innovation. In-house operations remain dominant at 84 per cent, while outsourcing has risen modestly to 12 per cent for non-core work. GCCs are also improving cybersecurity and regulatory compliance, with monitoring of third-party data access increasing from 44 per cent in 2024 to 60 per cent in 2025. Regulatory concerns like transfer pricing (63%) and data privacy are being actively managed.

Leaders at EY India note that this transformation allows GCCs to deliver value beyond cost savings, with 92 per cent aiming to manage end-to-end global processes and 87 per cent expanding their functional responsibilities. With AI integration, dedicated innovation teams, and strategic involvement in global decision-making, India’s GCCs are shaping business strategies, driving innovation, and becoming central to multinational operations.

In short, GCCs in India are no longer just support centres, they are evolving into global hubs of innovation, AI-powered decision-making, and leadership, positioning India as a key player in the strategic operations of multinational companies.