Why Enterprises Are Rethinking GCC Design in 2025

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Why Enterprises Are Rethinking GCC Design in 2025

The GCC Design and Setup Landscape: It's Not Your Grandfather's Cost Center Anymore

Remember when Global Capability Centers (GCCs) were just a back-office operation, a way to cut costs on IT and finance? Well, that era is over. According to a March 2025 report from ISG Provider Lens™, sponsored by Namratha Dharshan and authored by Gaurang Pagdi, GCCs are undergoing a massive transformation. They’re no longer just about labor arbitrage; they’re becoming strategic powerhouses the digital nerve centers of an enterprise.

This shift is fundamentally changing the rules of the game. If you’re still treating your GCC as a simple cost-cutting tool, you’re at risk of being left behind. Today’s GCCs are where innovation happens. They’re hubs for AI-driven automation, real-time analytics, and cybersecurity, providing a competitive edge you simply can’t afford to lose. So, let me ask you: is your enterprise ready to make the leap from cost center to innovation hub?

GCC Strategic Design and Setup Models: Choosing the Right Path to Future

Building a GCC in 2025 is a complex undertaking, and the old “one-size-fits-all” approach is obsolete. The ISG report highlights a number of strategic models that enterprises can choose from, each with its own pros and cons:

Greenfield: This is the full-control, full-ownership model, but it comes with a hefty price tag and a significant initial investment.
Build-Operate-Transfer (BOT): A flexible option where a provider helps you get everything up and running, managing the operations for a period before transferring full ownership to you.
Joint Ventures (JVs): Partnering with local entities to reduce risk and tap into their expertise.
Assisted GCC: A model where a provider gives you a helping hand with initial operations while you maintain long-term control.

ISG Providers Lens - GCC Design and Setup

Download Report - ISG Provider Lens : GCC Design and Setup

The Competitive Landscape: Who's Leading the Way in GCC Services?

The race to provide the best GCC services is heating up. The ISG report has given us a clear picture of the market, categorizing providers into four groups.

Leaders: These are the heavyweights, the ones with a proven track record. The report names Accenture, Capgemini, Cognizant, Deloitte, EY, HCLTech, IBM, Infosys, KPMG, and TCS as the top contenders.
Rising Stars: Keep an eye on these players. They have strong potential and are on the verge of becoming Leaders. Persistent Systems and Tech Mahindra are highlighted in this category.
Product Challengers: These providers, including Coforge, PwC, Randstad Digital, and Wipro, are carving out their own niches with strong, targeted offerings.

What this tells us is that the market is diverse, and there are many different approaches to providing these services. This also means you have more choices than ever before, but it also makes the decision making process much more important. Are you working with a provider who’s ahead of the curve, or one that’s still catching up?

The Future of GCCs: A Glimpse into an AI-Powered World

The final, and perhaps most exciting, takeaway from the report is the future of GCCs. This isn’t about incremental changes; it’s about a fundamental shift towards a self-learning, AI-powered future. Think hyperautomation, cloud-first architectures, and a workforce augmented by AI.

Looking ahead, the report suggests that GCCs will become autonomous, AI-driven decision-making units. Imagine using Agentic AI for self-optimizing operations and Generative AI (GenAI) for everything from financial forecasting to strategic planning. This isn’t science fiction; it’s the future that’s already taking shape.

So, here’s the final question for you to consider: Is your GCC strategy preparing you for this AI-powered future, or are you at risk of being left behind? The time to act is now.