India’s 2,117 Global Capability Centers (GCCs) are evolving into AI-driven execution hubs, shifting from simple cost-saving units to strategic assets. However, recent data from Zinnov and ProHance reveals that over 70% of these centers lack structured frameworks to measure the return on investment for their AI projects. This shift impacts the broader tech ecosystem and how multinational corporations allocate their global technology budgets.
What Happened
India’s Global Capability Centers (GCCs), which are offshore units established by multinational corporations, are undergoing a major strategic change. As of 2026, there are 2,117 GCCs in India. These centers, once primarily viewed as cost-efficient back-offices, are now positioning themselves as "control towers" for enterprise-wide Artificial Intelligence (AI) adoption. While this move aims to integrate AI directly into business workflows, a joint study by Zinnov and ProHance highlights a critical weakness: over 70% of these centers do not have structured frameworks to measure the financial returns (ROI) of their AI initiatives.
From Back-Office to AI Control Tower
Global enterprises are moving AI work from experimental pilot projects into daily production. To do this, companies need their GCCs to connect AI models with real-world data, systems, and processes. Unlike a third-party vendor model where work is outsourced, GCCs are company-owned. This allows them to have deeper access to the parent company’s core intellectual property and operational data.
For example, firms like Walmart and Lowe’s have integrated their Indian GCCs into their global tech engines. These centers now develop AI tools that help manage frontline store operations and supply chains, rather than just performing routine IT maintenance or administrative tasks. This shift requires GCCs to take ownership of end-to-end AI deployment, from initial data readiness to final execution.
The ROI Measurement Gap
The transition has created a clear conflict between ambition and accountability. While 92% of Indian GCCs are actively piloting or scaling AI projects, the lack of an ROI framework means many leaders cannot clearly prove how these initiatives impact the company's bottom line. Without clear measurement, AI programs risk remaining expensive experiments rather than becoming sustainable business drivers.
Experts note that the challenge is no longer about whether a GCC can build AI, but whether it can connect AI to measurable business outcomes such as efficiency, customer experience, or profit growth. This is creating pressure on GCC leadership to move beyond technical success and justify their investments to global headquarters.
Competition and Collaboration with IT Services
This evolution is also changing the relationship between GCCs and the listed Indian IT services sector (companies like TCS, Infosys, and HCLTech). For years, the Indian IT model relied on multinational clients outsourcing their tech work to these service providers.
With GCCs now internalizing more complex work like AI model development, product engineering, and R&D, some of this high-value work is staying in-house. While industry leaders describe the relationship as symbiotic—where GCCs and IT service providers often work together—there is an undeniable reconfiguration of roles. IT service firms are increasingly positioning themselves as partners who can scale and provide specialized support that even large GCCs may struggle to maintain at speed, such as handling spikes in demand or managing massive workforce transformations.
What Investors Should Track
Investors monitoring the Indian technology space should pay attention to how this shift impacts the competitive landscape. The ability of a GCC to deliver measurable ROI is likely to dictate its future budget and headcount. The key things to monitor include:
- Whether GCCs can prove financial value, which may influence their growth and hiring demand in India.
- How Indian IT services firms evolve their service offerings to remain valuable to companies that are also growing their in-house GCCs.
- The pace at which GCCs move from pilot phases to production-ready AI systems.
- Any trends in talent demand, as GCCs compete for the same high-end AI specialists as listed IT companies.