How Gen AI is Transforming Global Capability Centers and the Future of Outsourcing

By Ananth Rao Rudravaram

Everywhere I look, AI is no longer a futuristic concept—it’s real, present, and redefining how we work, think, and lead. What once felt like a buzzword is now deeply embedded in boardroom strategies, outsourcing decisions, and product innovation roadmaps. At the heart of this shift is how Global Capability Centers (GCCs) are reinventing themselves for the future, driven by Gen AI and shifting enterprise priorities.

A Shift From Adoption to Reinvention

Attending the NASSCOM GCC Summit was a timely reminder of how quickly the landscape is evolving. It wasn’t about chasing trends—it was about embracing a GenAI-led transformation. The dialogue had clearly shifted from technology adoption to full-scale organizational reinvention.

A few themes stood out strongly:

• Gen AI as the Core Engine of GCCs: GCCs are no longer traditional outsourcing back offices. They are becoming AI-powered innovation hubs that build intelligent systems, create connected experiences, and drive data-driven decision-making at scale. Gen AI in GCCs is enabling enterprises to automate workflows, unlock new insights, and accelerate time-to-value.

• Leadership Rewired for an AI-Powered World: With Generative AI automating routine and repetitive tasks, leadership within GCCs is shifting toward agility, creativity, and strategic foresight. The focus is now on leading teams that can adapt faster than change itself.

• Mature vs. New-Generation GCCs: Established capability centers are being pushed to reinvent their core value proposition, while new GCCs are born AI-native, with Gen AI and automation embedded into their operations from day one. The most successful ones treat AI not as a tool, but as a strategic partner.

• Branding and Strategic Positioning: An increasing number of leaders are emphasizing the need to build strong GCC brands—not just as delivery arms, but as trusted, innovation-driven enterprise partners. This becomes especially critical in a GenAI-enabled outsourcing ecosystem, where differentiation is key.

• India’s Ascent as a Gen AI Powerhouse: India’s GCCs are well-positioned to lead the next wave of global growth. With a surge in intellectual property, leadership talent, and GenAI applications, they are on track to go far beyond the $100B mark. The big question now is: What partnerships, platforms, and adjacencies should GCCs pursue in a GenAI-driven future?

Building the Next Generation of GCCs

At SMC Squared, we see these shifts playing out in real time. We believe the future belongs to organizations that establish GCCs not just for cost savings—but for intelligence, agility, and global influence.

Gen AI isn’t just transforming processes—it’s reshaping purpose. If your company is considering how to evolve its outsourcing strategy or launch a next-generation GCC, now is the time to act. Whether you're optimizing an established center or building from scratch, our team can help you architect a GenAI-enabled capability center that delivers enterprise impact at scale.

Let’s Talk: Is Your GCC Ready for Gen AI?

We’d welcome the opportunity to connect. Reach out to explore how your GCC can become a strategic driver of AI-powered innovation, enterprise transformation, and outsourcing excellence.