India’s Global Capability Center (GCC) ecosystem has reached a new stage of enterprise maturity, according to a joint study released by HFS Research and ANSR. The inaugural HFS GCC Generative Enterprise Market Pulse introduces the HFS Generative GCC Index, a benchmarking framework designed to measure how prepared GCCs are for the emerging Generative Enterprise era. While the research finds that Indian GCCs have evolved well beyond traditional shared services, it also identifies a widening gap between their growing strategic responsibilities and the authority needed to drive enterprise-wide transformation.

India’s Global Capability Centers (GCCs) are rapidly evolving from cost-focused offshore delivery hubs into strategic innovation centers, but enterprises must rethink governance and decision-making if they expect these organizations to lead the next wave of AI-driven transformation.

That is the central finding of the inaugural HFS GCC Generative Enterprise Market Pulse, jointly unveiled by HFS Research and ANSR. The report introduces the HFS Generative GCC Index, a new maturity benchmark that evaluates GCC readiness across leadership, AI adoption, talent strategy, operating models, innovation, ownership, and ecosystem collaboration.

The inaugural index assigns India’s GCC ecosystem a score of 61.9, placing it at the entry point of the Transformation Partner stage in the HFS maturity framework. The score reflects significant progress beyond traditional shared services while highlighting that many organizations have yet to achieve the operational autonomy required to function as enterprise innovation hubs.

Mission-Critical, But Not Fully Empowered

One of the study’s most significant findings is the disconnect between responsibility and authority.

According to the research, 83% of surveyed GCCs are considered mission-critical to their parent enterprises, yet only 17% report having full ownership of strategic decisions and budget authority. That imbalance, researchers argue, could become a major constraint as enterprises increasingly rely on GCCs to lead digital transformation and artificial intelligence initiatives.

Rather than measuring success through workforce size or delivery efficiency, enterprises are beginning to evaluate GCCs based on ownership of products, platforms, intellectual property, and measurable business outcomes.

This shift reflects a broader trend across multinational organizations, where distributed engineering and technology centers are assuming greater responsibility for innovation, software development, cybersecurity, analytics, and AI.

AI Adoption Is Expanding Faster Than Organizational Change

Artificial intelligence has become a central priority for India’s GCC ecosystem.

The report shows that 95% of GCCs have active AI initiatives, while 55% expanded AI and machine learning capabilities during the past 18 months. Another 43% increased investments in data engineering and analytics, underscoring the growing importance of enterprise data infrastructure.

Despite this momentum, researchers caution that AI implementation remains concentrated in productivity improvements rather than enterprise redesign.

Most organizations continue to generate value through software engineering acceleration, business process automation, and decision intelligence. However, relatively few have restructured governance, workflows, or operating models around AI-first principles.

That distinction is becoming increasingly important as enterprises evaluate long-term returns from generative AI investments across platforms from companies such as Microsoft, Google, Amazon Web Services (AWS), and NVIDIA, whose enterprise AI ecosystems are reshaping technology strategies worldwide.

Ownership Emerges as the Defining Measure of GCC Maturity

Among all factors evaluated, end-to-end product ownership produced the strongest impact on organizational maturity.

The study found that GCCs responsible for complete product ownership achieved index scores 56% higher than execution-focused centers.

Researchers argue that future competitiveness will depend less on expanding headcount and more on empowering GCC leaders to make strategic decisions across product development, AI deployment, digital platforms, and enterprise innovation.

This aligns with broader workforce technology trends, where organizations increasingly favor decentralized innovation models supported by cloud infrastructure, AI platforms, and cross-functional engineering teams.

Shared Services Continue to Fade

The report also illustrates how the identity of India’s GCC sector is changing.

Only 17% of respondents now describe their organizations primarily as Shared Services Centers.

Instead:

• 38% identify as Digital Transformation and Engineering Hubs.
• 34% operate as AI, Data, and Automation Centers of Excellence.

The findings suggest enterprises are repositioning GCCs as strategic technology organizations rather than operational support functions.

For HR and workforce leaders, this evolution has implications for talent acquisition, leadership development, organizational design, and skills planning as demand rises for AI engineers, cloud architects, cybersecurity specialists, and product managers.

Ecosystem Collaboration Remains an Untapped Opportunity

While India continues attracting billions of dollars in digital infrastructure investment, the report indicates that collaboration across the broader innovation ecosystem remains relatively limited.

Approximately 34% of GCCs actively partner with consulting and services firms, while 26% collaborate with hyperscale cloud providers.

However, 32% report no significant ecosystem engagement, and participation with startups, universities, and research institutions remains comparatively low.

Industry analysts argue that stronger partnerships across academia, venture ecosystems, cloud providers, and enterprise software vendors could accelerate AI innovation while helping GCCs move beyond execution toward enterprise leadership.

Market Landscape

India has become one of the world’s largest Global Capability Center markets, with multinational enterprises continuing to expand technology, engineering, cybersecurity, finance, and AI operations across the country. According to NASSCOM, India hosts more than 1,700 GCCs employing over 1.9 million professionals, while new investments continue across engineering and digital transformation.

The latest findings also reflect broader enterprise AI trends. McKinsey & Company has reported that organizations are rapidly increasing investments in generative AI, yet many remain in early stages of scaling governance and operating model transformation. Likewise, Gartner projects that AI-enabled business transformation will increasingly depend on organizational redesign rather than technology deployment alone.

Against that backdrop, the HFS Generative GCC Index provides enterprises with a structured benchmark for evaluating how effectively their GCCs are transitioning from operational delivery centers into AI-enabled business transformation partners.

For enterprise HR, technology, and operations leaders, the message is clear: future GCC success will depend not only on AI adoption, but also on granting greater decision-making authority, fostering end-to-end ownership, and strengthening collaboration across the broader innovation ecosystem.

Top Insights

• India’s GCC ecosystem achieved a maturity score of 61.9, marking its transition from traditional delivery operations toward enterprise transformation and AI-driven innovation capabilities.
• Despite 83% of GCCs being considered mission-critical, only 17% control strategic decisions and budgets, highlighting a governance challenge for enterprise transformation.
• AI adoption has become mainstream, with 95% of GCCs running AI initiatives, although most organizations have yet to redesign operating models around AI-native workflows.
• End-to-end product ownership increases GCC maturity by 56%, reinforcing that enterprise value increasingly depends on business ownership rather than operational scale.
• Limited collaboration with startups, universities, and innovation ecosystems represents a significant opportunity as India expands AI infrastructure investments.

Join thousands of HR leaders who rely on HRTechEdge for the latest in workforce technology, AI-driven HR solutions, and strategic insights