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GCCs in India Shift from Back-Office to Strategic Partners with Generative AI

  //business-finance.news-articles.net/content/202 .. ce-to-strategic-partners-with-generative-ai.html
  Published in Business and Finance on Sunday, November 23rd 2025 at 7:19 GMT by Business Today

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GCCs in India are turning to Generative AI and niche talent as they take full ownership of their business processes – EY’s latest report shows

The Business Today story, published on 23 November 2025, delves into a fresh EY research brief that tracks how Global Capability Centers (GCCs) in India are redefining themselves. Rather than remaining the “back‑office” of multinational corporations, many GCCs are now being asked to own entire customer journeys, product lifecycles and even go‑to‑market strategies. The report, which can be downloaded from EY’s website (link embedded in the article), provides a granular look at the three key levers driving this shift: the rapid uptake of Generative AI (GenAI), the pivot to niche hiring and the move toward end‑to‑end ownership of operations.

1. From “Support” to “Strategic Partner”

The article opens with a historical overview: GCCs were first set up in India in the early 2000s to house routine back‑office functions – data entry, finance & accounting, customer support, and so on. Over the past decade, the focus has steadily migrated toward “digital core” services such as analytics, automation and product development. The EY brief quantifies this transition: 82 % of GCCs now report that they are “directly responsible for at least one major revenue‑generating process” (versus 28 % in 2019).

The Business Today piece notes that this change is not merely a by‑product of outsourcing trends but is the result of a deliberate strategy by GCCs to position themselves as “strategic partners” rather than “contracted workers.” The new ownership model requires higher levels of technical capability, data sovereignty, and a deep understanding of the client’s core business.

2. Generative AI – The Game Changer

The article spends a significant portion of its body on GenAI, the technology that has been dubbed “the next wave of digital transformation.” EY’s survey, which the Business Today writer cites, shows that:

• 68 % of GCCs are already experimenting with GenAI‑powered tools such as GPT‑4, Claude, and open‑source Llama models.
• 54 % have formalized an AI roadmap that spans product development, risk management, and customer engagement.
• 47 % of respondents claim that GenAI has cut their operational costs by an average of 17 % in the past year.

The Business Today article quotes Dr. Rohan Gupta, EY’s Head of AI Consulting for GCCs, who says, “What we’re seeing is a pivot from ‘automation’ to ‘augmentation.’ The role of the human is shifting from task execution to higher‑value design, oversight and ethics.” A short excerpt from the EY report linked in the article illustrates a case study of a GCC that leveraged GenAI to automate contract review, cutting turnaround time from 48 hours to under 5 minutes.

The article also touches on the “human‑in‑the‑loop” approach that many GCCs are adopting to mitigate bias and regulatory concerns, a topic that is linked to a separate Business Today piece on AI ethics in India.

3. Niche Hiring – The Talent Revolution

Alongside GenAI, the EY brief points to a “niche hiring” wave. Traditional roles such as “software developers” or “data analysts” are giving way to more specialized titles:

• AI ethics & policy specialists
• Cyber‑security risk managers
• Domain experts in life sciences, fintech and automotive
• Generative AI model trainers and data labelers

The Business Today article highlights that 73 % of GCCs say they are actively recruiting for at least one of these niche roles, and 63 % report a need for “new skill sets” that cannot be found in the current talent pool. The piece links to an EY infographic that outlines the top five niche categories and their projected growth.

Interview excerpts from CEOs of leading GCCs reinforce this trend. “We’re no longer just hiring for code; we’re hiring for cognition,” says Ananya Rao, COO of a leading GCC in Bangalore. “You need people who can interpret AI outputs and turn them into business decisions.”

4. End‑to‑End Ownership – The New KPI

One of the most compelling parts of the Business Today article is its discussion of “end‑to‑end ownership” as a KPI. EY defines it as the ability of a GCC to own the entire customer journey—from ideation and development to delivery and post‑sale support—within a single, vertically integrated ecosystem.

The article presents a table (sourced from the EY report) that shows how end‑to‑end ownership correlates with revenue growth and client retention:

According to the article, 59 % of GCCs with a full ownership score have seen a “substantial lift” in their profitability margins.

5. Challenges & Recommendations

The EY report—and the Business Today article—do not shy away from the challenges that accompany this transformation:

• Talent Shortage – The high demand for niche roles is outpacing supply, leading to a skills gap.
• Change Management – Shifting from a cost‑center to a profit‑center requires a cultural overhaul.
• Regulatory Risk – The increased use of GenAI raises data‑privacy and compliance issues, especially in regulated industries such as healthcare and finance.

The article links to a side‑bar on “Regulatory Landscape for AI in India,” citing guidelines from the Indian Ministry of Electronics and Information Technology. EY recommends that GCCs adopt a phased approach: start with low‑risk AI pilots, invest in up‑skilling, and set up robust governance frameworks.

6. Looking Ahead – The Roadmap

The Business Today piece concludes with a forward‑looking lens. EY’s 2025 forecast, accessible via the link in the article, predicts that:

• 70 % of GCCs will have fully integrated GenAI into at least one core service by 2027.
• Niche hiring will grow by 12 % annually, with a shift toward “AI‑centric” roles.
• End‑to‑end ownership will become a standard benchmark in GCC performance evaluations.

The article’s author stresses that the key to success will be a “continuous loop of experimentation, learning and scaling.” He also recommends that GCC leaders establish “AI centers of excellence” and collaborate with academic institutions to build a sustainable talent pipeline.

7. Key Take‑aways

The article provides a rich tapestry of data, real‑world anecdotes and strategic insights that paint a clear picture: Indian GCCs are not just keeping pace with global trends—they’re setting the pace in the integration of AI, niche hiring and end‑to‑end operational ownership. For anyone interested in the evolving dynamics of global capability centers, EY’s full report is a must‑read (the link is embedded in the Business Today article).