Because let’s be honest—too many GCC strategies still think it’s 2010 and the only KPI is “cheaper.” This series is your no-nonsense companion to building AI-ready, strategically aligned GCCs that don’t implode mid-transfer.
They used to chase cost savings. Now they’re chasing patents. Welcome to the AI-powered GCC era.
🧠 This post is part of our “Future-Proof Playbook” blog series based on the white paper: [Establishing and Managing AI Enabled GCCs – A Sourcing & Procurement Professional’s Guide, 2025]. If you think all India-based teams do is low-cost ticketing, you’re in for a strategic slap of reality.
📰 Update from the Real World: First Citizens Joins the Party
ICYMI, First Citizens BancShare, the $200B US bank just announced their new Global Capability Center (GCC) in India. They’re not hiding behind vague “operational scale” language either. They’re hiring 600+ roles across risk, data, analytics, and yes—innovation. Full story here: Entrepreneur India.
Let’s pause and reflect: A major U.S. bank, fresh off a massive acquisition, chooses India not for cost—but to build muscle in AI, analytics, and business-critical ops.
Translation: The world’s moved on. Has your sourcing team?
🚀 From Cost Arbitrage to Innovation Arbitrage
There was a time when “offshoring” meant slapping a VPN on a Dell laptop and hoping the team in Pune could handle password resets. Your CFO was thrilled. You, however, were secretly praying no one asked for anything complex.
Fast forward to 2025. India’s GCC ecosystem has turned into a $105B behemoth, with over 1,700 centers and 1.9 million professionals. These aren’t back-office drones. These are data scientists, cloud architects, and engineers building AI models that drive your quarterly earnings (but don’t worry, they’ll still reset your VPN if you ask nicely).
📍 Tier II Cities: Where the Real Brains Are
Everyone knows about Bangalore, Hyderabad, and Chennai. But here’s what your Real Estate team hasn’t briefed you on: places like Jaipur, Coimbatore, and Visakhapatnam are the new hotspots. Lower rent, hungrier talent, and less traffic. What’s not to love?
Mid-market firms are eating this up. They’re launching “nano GCCs”—tiny teams of 10–50 people doing highly strategic work. Think of it like a boutique AI lab, but with more chai breaks and fewer legacy systems.
🤖 AI + GCCs = Your Secret Innovation Weapon
Modern GCCs aren’t just automating processes. They’re building models that predict customer churn, optimize cloud spend, and personalize patient treatments.
AI isn’t just infused—it’s foundational. In fact:
40% of digital transformation initiatives at multinationals are now driven out of Indian GCCs.
Companies are embedding AI into everything from underwriting to surgical imaging.
Co-development of proprietary AI IP is happening… and not in your home country.
Still treating your GCC like an offshore support function? That’s like having a Formula 1 car in your garage and only using it to pick up groceries.
💡 TL;DR for Execs with Calendar Fatigue
India’s GCCs are leading global innovation—not just executing ops.
First Citizens BancShares is the latest proof that AI + India = strategic edge.
Tier II cities are bringing Tier I output—with lower attrition and rent.
GCCs are co-owning product lines, driving transformation, and building patent-worthy tech.
If your offshore strategy still reads like it was written in 2012, it’s time to re-evaluate.
📥 Craving structure? Confused about COPO vs BOT? Curious about contract clauses, AI maturity scoring, or ethical AI in vendor proposals? We’ve got a 30+ page answer for you. Drop us a note and we will send the complete white paper to you, no cost. 👉info@two93.com
