Industry Industry

13

March

From Campfire to Lighthouse: Mapping the Maturity Curve of India’s GCCs

India’s Global Capability Centers (GCCs) are no longer the quiet backrooms of global enterprises. Once created to reduce costs and manage IT support, today’s leading GCCs are designing products, shaping AI strategy, and driving innovation at scale.

But not all GCCs take the full journey.

Some flicker briefly — energized at launch but eventually starved of strategic direction. Others evolve into unshakable centers of value, trusted to lead product innovation, enterprise transformation, and business growth.

To help leaders visualize this transformation, we present the Campfire-to-Lighthouse Maturity Model — a narrative framework that captures the evolution of successful GCCs in four symbolic stages.

 

Stage 1: The Campfire

Warmth, Hope, and Vulnerability

What it looks like
 Early-stage GCCs support functions such as IT ticketing, BPO tasks, and basic automation. Common examples include L1 support, employee onboarding, and service desk operations.

Industry Insight
 According to a 2020 McKinsey study, 80 percent of newly established GCCs in India started with basic IT or finance operations.

Focus Areas

  • Cost arbitrage
  • Talent availability
  • Physical and digital infrastructure setup

Strength
 Lean and agile, with close ties to HQ needs

Risks

  • Over-dependence on HQ budgets
  • Lack of a compelling value narrative
  • Vulnerability to strategic reprioritization

Leadership Mandate

  • Build early trust with global leadership
  • Establish foundational governance
  • Begin measuring outcomes, not just outputs

AI Lens

  • Early RPA experimentation
  • Basic Python scripts
  • No formal AI roadmap

Key Thought
 Campfires draw attention, but without strategic fuel — leadership, investment, and long-term vision — they burn out quickly.

Stage 2: The Furnace

Structured Heat, Measurable Output

What it looks like
 GCCs at this stage evolve into operational engines. Processes are standardized, delivery is reliable, and shared service models are in place.

Example
 American Express’ GCC in India progressed from transaction support in the early 2000s to owning core finance operations by 2010, contributing over 500 million dollars in annual value.

Focus Areas

  • Shared services
  • Process excellence and automation
  • Compliance and quality frameworks

Strength
 Predictability, efficiency, and delivery discipline

Risks

  • Innovation stagnation
  • Being seen as a cost center, not a value driver

Leadership Mandate

  • Build Centers of Excellence (CoEs)
  • Implement governance dashboards
  • Foster cross-functional capabilities

AI Lens

  • Deployed chatbots for employee services
  • Document automation and process mining
  • AI pilots across finance and HR

Key Thought
 A furnace delivers consistent heat, but without forward motion, it becomes a utility — efficient, but replaceable.

 

Stage 3: The Forge

Innovation Under Pressure

What it looks like
 GCCs begin to co-own business outcomes. They play a role in product design, customer insights, platform development, and digital strategy.

Example
 PepsiCo’s Hyderabad GCC contributes to global product strategy, including transformation of supply chain systems and sustainability analytics.

Focus Areas

  • AI- and ML-driven solutions
  • DevOps and data engineering
  • Design thinking and customer experience

Strength
 Integrated with the core of enterprise innovation

Risks

  • Burnout from constant innovation pressure
  • Shadow IT and uncoordinated experiments
  • Budget constraints

Leadership Mandate

  • Drive GenAI strategy
  • Nurture internal innovators and future leaders
  • Formalize IP creation and innovation governance

AI Lens

  • GenAI Centers of Excellence
  • Models trained on proprietary data
  • Deployment of hyper-personalized customer and business solutions

Key Thought
 A forge shapes value through pressure. But without structure and intent, that pressure can fracture more than it builds.

 

The Storm Test

The Defining Inflection Point

At some point, every GCC faces its own storm — internal or external — that tests its resilience and strategic relevance.

Common Triggers

  • Market shocks and macroeconomic instability
  • Rising attrition and talent wars (India’s tech attrition peaked at 25 percent in 2022)
  • Cloud migration and AI compliance issues
  • Shifting global HQ strategies

Leadership Challenge
 This is the moment of truth. Either the GCC demonstrates strategic indispensability, or it gets pulled back into tactical execution.

Survival Kit

  • Robust architecture and tooling
  • Real-time visibility and reporting
  • Retention of critical talent
  • Governance that allows autonomy
  • Stakeholder education and engagement

Example
 During the 2023 tech sector layoffs, one global bank’s Pune GCC pivoted from cost containment to leading internal AI initiatives — securing its role while others were downsized.

Stage 4: The Lighthouse

Strategic, Trusted, and Unshakable

What it looks like
 Mature GCCs become innovation hubs and transformation engines. They lead global programs, develop AI-native platforms, and contribute to enterprise P&L.

Example
 Unilever’s Bangalore GCC drives global supply chain intelligence and enterprise AI solutions, playing a central role in key business decisions.

Focus Areas

  • AI-first mindset across functions
  • Ownership of global products and platforms
  • ESG, ethics, and regulatory maturity
  • Future-ready architecture including cloud-to-edge

Strength
 Strategic clarity, global trust, and consistent innovation

Risks

  • Loss of agility due to organizational scale
  • Process complexity and internal red tape

Leadership Mandate

  • Expand leadership capability across regions
  • Push the frontiers of cloud, edge, and AI ethics
  • Position the GCC as a strategic consultant, not just an executor

AI Lens

  • AI-native operating model
  • Influences enterprise tech stack and governance
  • Drives value through decision intelligence at scale

Key Thought
 Lighthouses do not just endure the storm — they guide others through it. Mature GCCs illuminate the enterprise path forward.

 

Where Are You on the Maturity Curve?

Every GCC finds itself on this journey. Many plateau between the Furnace and the Forge — effective, but not transformative. Others get stuck due to budget cycles, leadership churn, or unclear mandates. A few rise to become lighthouses, setting new standards for global excellence.

Reflective Questions for GCC Leaders

  • Are you still seen as a cost-saving engine — or a strategic growth partner?
  • Do you run isolated pilots — or is AI embedded in your DNA?
  • Are you waiting for playbooks — or authoring them?
  • Do your teams support execution — or lead transformation?

 

Final Word

The journey from a campfire to a lighthouse is not linear, and it is not easy. It demands vision, boldness, and relentless execution. It requires building autonomy, exporting leadership, and creating impact that resonates beyond geography.

If you are shaping the future of India’s GCC landscape, remember this:

Your decisions on culture, AI, and leadership today will define your GCC’s legacy tomorrow.

Because the enterprise no longer needs just support centers.
 It needs Lighthouses that lead.

 

Wherever you are on the journey, Collabera is here to help.

Whether you are setting up a new GCC or scaling an existing one, we bring the expertise, talent, and solutions to support your next phase of transformation.

 

#GCCLeadership #EnterpriseTransformation #AIatScale #IndiaGCC #GenAI #DigitalMaturity #InnovationHubs #LeadershipJourney #Collabera

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