India's Global Capability Centres (GCCs) are undergoing a fundamental transformation, moving beyond their traditional role as mass employers to become innovation powerhouses driving business outcomes for their parent companies. This strategic shift comes as artificial intelligence and other advanced technologies become integral to global operations.
The End of the Numbers Game
For years, the success of GCCs in India was measured primarily by the number of white-collar professionals they hired. While these centres have become the largest employers of skilled talent in India's corporate sector, there's growing recognition that sustainability requires more than just scale.
The changing mindset was evident at recent multi-city programmes organized in partnership with Nasscom, where industry leaders revealed a dramatic shift in strategy. Rather than focusing on expanding headcount, top GCC executives are now prioritizing innovation and high-quality work that delivers tangible business results.
Pharma Leaders Take Bold Stands
Two global pharmaceutical companies demonstrated remarkable alignment in their approach to this transformation. At a Mumbai event last month, Raja Jamalamadaka, Managing Director of Roche Digital Centre of Excellence India, emphasized the need to "leave the hand of focus on size and scale" to embrace innovation.
His perspective was echoed by Mohit Dhingra, Managing Director of Bristol Myers Squibb India, who revealed he frequently rejects commoditized work despite the ease of cost arbitrage. "You'll be surprised how many times I have to say no. The cost arbitrage or the labour arbitrage play is so comfortable and so easy; anybody who wants to put roles here for thousands of people can easily do it," Dhingra stated at a Hyderabad event.
Dhingra's India centre has implemented strict policies, including refusing work requiring second or night shifts. "These are bold leadership calls we have to make. And that's going to be our make or break going forward," he explained, noting that automation could eliminate up to 50% of roles focused on commoditized work.
AI Revolution in Drug Development
The pharmaceutical industry's embrace of advanced technologies is particularly significant given the massive investments and timelines involved. Drug development typically takes 10-15 years and costs over $2 billion, creating immense pressure to improve efficiency.
Bristol Myers Squibb is "obsessed" with using AI across its entire process—from molecule discovery and clinical trials to manufacturing and commercialization. The company's 3,000-person India centre has become central to this AI-driven transformation, working to dramatically reduce both timelines and costs.
Financial Services Embrace Blockchain
The innovation focus extends beyond pharmaceuticals to financial technology. Santhanam Govindraj, CTO of Broadridge Financial Solutions India, highlighted that "a lot of our parent company's innovations come out of India."
The India GCC has developed significant blockchain capabilities, including conceptualizing a digital ledger that processes $400 billion worth of US treasuries as repos daily. Govindraj described this as potentially "the largest enterprise grade blockchain out there."
Looking ahead, Broadridge is focusing on tokenisation solutions, with much of this groundbreaking work originating from their India operations. "The US is very intentional on tokenising securities in its markets," Govindraj noted, emphasizing India's role in developing these solutions.
Tech Partnerships Accelerate Innovation
Technology service providers are playing a crucial role in supporting GCCs' innovation journeys. Kiran Cherukuri, global GCC practice head at HCLTech, explained that established platforms for implementing AI can significantly accelerate development timelines for GCCs.
These platforms enable GCCs to bypass lengthy development cycles and quickly deploy AI solutions, further reinforcing the shift from scale to innovation-driven outcomes.
The collective message from industry leaders is clear: India's GCC ecosystem is maturing beyond cost advantages to become strategic innovation hubs that drive meaningful business outcomes for global parent companies through specialized expertise in AI, blockchain, and other transformative technologies.
