Global Capability Centers (GCCs) are undergoing a seismic transformation, evolving from cost centres to strategic innovation hubs that drive business resilience, sustainability, and digital transformation. In this exclusive interview with All Things Talent, Ajay Anand, EY Global Vice Chair, Global Delivery Services, shares insights into how GCCs are navigating global disruptions, embracing emerging technologies like generative AI and cloud solutions, and addressing talent challenges in areas like AI, data science, and cybersecurity.
From their pivotal role in advancing ESG objectives to scaling capabilities for global strategy alignment, the leader highlights how GCCs are reshaping the enterprise landscape, becoming indispensable partners in fostering innovation, creating value, and building a sustainable future.
Q/ How have GCCs evolved in recent years, particularly in response to global disruptions like the pandemic and geopolitical shifts?
Global Capability Centers (GCCs) have evolved into key drivers of transformation, central to enterprise strategy, resilience, and innovation. Once valued primarily for cost efficiency, they now shape global business ecosystems. Recent global disruptions have underscored their importance as they swiftly adopted flexible operational models, expanded remote work capabilities, and advanced digital transformation to enable uninterrupted business operations. The operational philosophies are evolving, leading to tighter integration between the enterprise and GCCs with a common definition of success. This adaptability has solidified their reputation as reliable partners across geographies and industries. Furthermore, mature GCCs are moving up the value chain, becoming transformers and integrators, which leads to an evolution from delivery hubs to end-to-end ownership that contributes to revenue and growth. For example, EY GDS is already ahead in this journey, as evidenced by the multiple global roles housed within the organisation.
Geopolitical developments have further highlighted India as a strategic hub for GCCs due to its skilled talent pool, robust digital infrastructure, and supportive policies. GCCs have progressed from operational support roles to innovation leadership, pioneering advancements in AI, automation, and advanced analytics, and contributing as strategic partners in the global value chain. Beyond operational efficiency, they are integral to building adaptive technology-driven ecosystems, spearheading R&D initiatives, and co-creating value-driven solutions. Additionally, GCCs are strategically diversifying their location portfolio across the globe to mitigate risks amid global uncertainty.
Q/ How are GCCs evolving from being cost centres to innovation hubs and leveraging emerging technologies like generative AI, automation, and cloud solutions to drive transformation?
As we navigate this transformative age, characterised by the need for rapid value creation, tech-enabled service delivery has become paramount. GCCs are at the forefront, merging technological advancements with strategic mandates and a focus on innovation. This evolution is fueled by the unique advantages GCCs offer, such as economies of scale, access to diverse scenarios, data, market needs and high-quality talent, along with the ability to tailor global offerings to diverse market needs.
GCCs are investing significantly in upskilling and transformation to maintain their competitive edge, creating value for clients and employees alike. By blending technology with human ingenuity, they are driving innovation and shaping a future where progress and value creation go hand in hand.
At EY, GDS is leading innovation in partnership with our Global EY Service Line teams. Our commitment to leveraging technological advancements is about setting the pace, not just keeping up.
AI is transforming business across EY's service lines, and by mastering AI, quantum computing, and automation capabilities, we're enhancing our service delivery and empowering our people to engage in more meaningful work.
Q/ How are GCCs addressing the growing competition for skilled talent, especially in areas like AI, data science, and cybersecurity? What innovative approaches are they adopting for talent retention and upskilling? With the growing need for specialised talent, how do you see GCCs addressing the challenges of skill shortages while staying competitive globally?
GCCs have transformed talent strategy into a competitive advantage. The rising demand for expertise in AI, data science and cybersecurity has driven a shift toward proactive talent management. To bridge skill gaps, GCCs are investing in partnerships with academic institutions and ed-tech platforms, building robust talent pipelines.
Future-proofing the workforce hinges on fostering an agile mindset, embedding continuous learning into the culture and building resilience to navigate uncertainty. Skills in AI integration, digital transformation, and cross-functional collaboration will complement creativity and critical thinking as key drivers of sustained success.
At EY GDS, we have learning and skilling programs designed to help our people stay ahead of business and market trends. Gamified learning modules engage employees in skill acquisition aligned with business goals. Our retention strategies focus on holistic employee value propositions, prioritising career growth, well-being, engagement and flexibility. Initiatives like hackathons, innovation challenges and rotational global assignments not only nurture talent but also embed a culture of innovation and purpose.
Such an approach enables GCCs to remain magnets for top-tier talent, simultaneously addressing skill shortages and fortifying their competitive edge on a global stage.
For example, EY Badges is our signature digital recognition program, which allows professionals to acquire skills in diverse areas such as data visualization, data science, AI, leadership, and inclusivity.
A couple of numbers on AI-related badges in FY24:
- Number of employees who have completed the AI Now Training - 62,157
- Number of employees who have been awarded AI Badges - 25,163
- Number of Tech MBAs who completed the training - 55
Such commitment to upskilling not only empowers professionals but also positions GCCs as hubs of innovation and future-ready talent in an ever-evolving global landscape.
Q/ How are GCCs adapting to meet the rising focus on sustainability and ESG objectives, and what are the key trends you foresee in this space?
GCCs are increasingly providing strong support to parent companies to advance ESG initiatives and move from “narrative to numbers.” GCCs have primarily focused on reporting, disclosures, and regulatory compliance (a 2023 EY report found that 47% of GCCs were actively involved in supporting global sustainability and integrated reporting, a significant increase from 17% in 2021). However, the remit is expanding, and they are now integrated into almost every part of the business value chain from the level of plants/factories manufacturing products/services to the corporate performance KPIs. They are playing an important role as co-pilots to initiate the transformation agenda through a sustainability lens.
With a rising number of ESG regulations, reporting frameworks and standards globally, there is massive responsibility on global organisations to be compliant at the very least and go beyond regulations to transform their legacy business and accelerate their decarbonisation journey – in essence making them responsible corporate citizens. GCCs, by their global nature and spread, as well as the access they have, are indeed primed to be at the centre of driving this agenda for the organisation.
At EY, we are increasingly being approached by GCCs and parent companies seeking our expertise in ESG reporting, improving ESG performance, developing decarbonisation roadmaps, assessing climate risks, sustainable procurement and conducting product lifecycle assessments, to name a few. With the core of sustainability at this point being reporting and data collection, we see an increase in investment in technology that enables continuous improvement and acceleration of the decarbonisation journey and more importantly allows for trustability, traceability and assurance.
To sum up, this is a place of rapid evolution and tremendous opportunities for GCCs.
Q/ What does the future hold for GCCs in terms of scaling up capabilities, embracing emerging technologies, and contributing to the global strategies of clients?
The GCC operating model is transitioning from the traditional 'back-office' functions to a more unified 'one-office' approach. This shift is fuelled by an influx of digital talent, technological advancements, and the development of transformative leadership skills. The GCC industry is evolving beyond transactional processing, focusing on transformation, innovation, and knowledge-intensive capabilities. With a growing emphasis on ESG, AI, data science, and leadership, GCCs aim to become Global Value Organisations. Surveys show a ~36% increase in capability enhancement, with enterprise-level digital transformation as a top priority.
GCCs are advancing as Centres of Excellence (COEs) by leveraging emerging technologies for innovation, efficiency, and product development. Key focus areas include Data & Analytics, AI, cybersecurity, RPA and cloud adoption, all pivotal to digital transformation and delivering value across business functions while aligning with global enterprise policies.
Amid growing pressures to manage Selling, General, and Administrative (SG&A) expenses and secure niche talent, GCCs are driving enterprise-wide transformation. Once a strategy for high-revenue clients, GCCs are now central even for smaller organisations due to cost efficiency and talent availability. This trend will accelerate with rising mergers and acquisitions, and spin-offs across sectors. The next wave of Global Business Services (GBS) will unlock value by enhancing user experience, expanding services to include sales, marketing, and legal functions, and driving digital innovation. GCCs are also solidifying their reputation as prime sources of top talent, further advancing their role in global enterprise strategies.
Mamta Sharma is a freelance journalist committed to sharing stories on talent management, DEIB, workplace culture alongside narratives on leadership, entrepreneurship, tech innovation and employee wellbeing.
