Leadership Gaps, AI Adoption Redefine India’s GCC Model

India’s Global Capability Centers (GCCs) remain overwhelmingly foreign-led, with fewer than one in 10 senior roles held by locals, EY’s 2025 Pulse Survey found, as organizations accelerate hiring for specialized digital skills and move deeper into AI-driven operations.

The survey showed that GCCs are responding to this leadership gap by focusing heavily on talent upgrades. About 71% of organizations are reskilling existing staff, while 70% are hiring for niche digital and AI roles, reflecting a sector that now competes primarily on capability rather than cost or scale.

Digital investments mirror this shift. Beyond generative AI, GCCs are deploying digital twins, process-mining tools, decision-intelligence systems and advanced cybersecurity platforms. More than 83% reported adopting zero-trust frameworks and continuous monitoring, a sign that cybersecurity has become foundational as these centers handle increasingly sensitive global workloads.

Workplace expectations are changing just as fast. Hybrid work is now standard, with 95% of GCCs offering flexible arrangements. Attrition has dropped to 9% in 2025, aided by stronger career-growth pathways, internal mobility programs and greater emphasis on innovation roles. Employees increasingly see progression as tied directly to digital and AI proficiency.

EY conducted the survey between August and October across India, Mexico, Poland and Malaysia. Each respondent represented an average of about 800 employees, capturing perspectives across both mature and emerging GCCs.

A major finding this year is the rapid mainstreaming of AI. Roughly 83% of centers have already invested in generative AI, while adoption of agentic AI, or systems capable of autonomous multi-step decision-making, is rising quickly.

GCCs are moving beyond pilots and embedding AI more deeply into judgment-based, higher-value processes.

EY’s Salil Shekharan said the next stage will require “structured innovation pipelines” that can consistently scale ideas across global functions.

As digital capabilities grow, GCCs are taking on wider enterprise responsibilities. According to the survey, 52% share ownership of business decisions and 26% provide direct strategic consulting to parent companies.

This marks a clear shift from the model’s origins as a support function to a role that shapes planning and execution.

As Arindam Sen of EY noted, GCCs “are no longer just service providers but essential partners in driving enterprise growth.”

Their functional scope reflects that shift. GCCs continue to expand in IT, finance and HR, but are also building capabilities in AI engineering, data analytics, R&D and innovation. Even so, the pace of expansion has slowed from 86% in 2023 to 51% in 2025 as centers prioritize depth over breadth and invest in specialized, high-value work rather than adding more functions.

Regulatory and compliance demands remain challenging. Transfer-pricing scrutiny, data-privacy obligations and cross-border governance issues continue to create operational friction. Still, leaders remain optimistic about growth, citing improved infrastructure, simplified compliance processes and supportive tax policies as key enablers, the survey showed.