Global capability centers (GCCs) have shifted from being cost-saving mechanisms to becoming strategic assets for multinational enterprises. These centers now serve as hubs for IT support, shared services, research and development and process optimization. The rapid advancements in AI – particularly generative AI (GenAI) and agentic AI – present a new frontier that can transform a GCC into a powerhouse of innovation and productivity.
What operating model changes do you need to make to build, extend or monetize a GCC? And how can you optimize the use of AI?
GCCs have become indispensable. Why? There are a few reasons: globalization, the digitization of operations and the advancement of technologies that support centralized expertise in areas like finance, IT, HR and data analytics. A strategic GCC approach can enhance operational efficiency and allow enterprises to quickly adapt to changing market dynamics.
Our data show that enterprises look to GCCs for a variety of reasons. Top among them is:
Access to global talent: GCCs enable enterprises to leverage skilled workforces in strategic global locations, providing specialized expertise in various fields at a competitive cost.
Operational efficiency: Standardizing processes across geographies helps maintain high quality and provides an opportunity to reengineer processes for efficiency.
Strategic flexibility: GCCs can be scaled to align with business demands or monetized for financial reinvestment, providing organizational agility.
Figure 1 below shows how enterprises responded when we asked them to name their most important objectives for managing functions through a GCC.
Source: ISG Market Lens, 2023 GCC Study n=301
Figure 1: Enterprises Objectives for a GCC
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