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The GCC That Does Not Build AI Will Not Survive the Decade

India hosts 1,800+ Global Capability Centres. The ones that thrive in 2026 and beyond are not the cheapest. They are the smartest. Here is what that means in practice.

AM
Arjun Mehta·CEO, Ivalio
February 18, 2025 9 min read

The Cost-Centre GCC Is Obsolete

When the first GCCs were established in India, the value proposition was simple: reduce operational cost by leveraging the wage differential. Run support, maintenance, and testing at a fraction of the cost.

That model still works. But it is no longer sufficient. AI is automating the work that cheap labour used to do. If a GCC's primary value is cost arbitrage for routine tasks, AI is directly competing with it.

What an AI-First GCC Looks Like

An AI-first GCC is not one that bought Copilot licenses. It is a fundamentally different org design. Instead of large pools of generalist engineers, AI-first GCCs organise around AI pods: small teams of senior engineers who own an AI capability end-to-end. These teams are expensive by traditional GCC standards, but they generate orders of magnitude more value.

They invest in shared AI infrastructure. They develop a proactive relationship with the parent organisation, identifying AI opportunities rather than waiting for requirements. They are product organisations, not delivery organisations.

The Transformation Path

The answer is not to blow up the existing model. It is to establish an AI pod alongside the existing delivery organisation, let that pod ship AI systems that demonstrate tangible value, and use that proof to expand progressively. Within a year, the AI pod typically generates more measurable business value than the rest of the GCC combined.

The window to make this shift is still open. But it is closing.


AM
Arjun Mehta
CEO, Ivalio

A thought leader in enterprise AI transformation with experience across fintech, healthtech, and enterprise software.

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