Global capability centers (GCCs) are surging in popularity. Nasscom’s recently concluded GCC Summit 2025 showcased the evolution of the country’s rapidly evolving GCC ecosystem. Forrester attended the event and spoke to several GCC leaders as well as providers serving the GCCs.

It is becoming evident that enterprises have been increasingly valuing their GCC not just as a cost-saving mechanism but as equal partners and collaborators with other in-house groups. This mindset shift is supercharging their role. We have seen them emerge as an accelerant for digital transformation initiatives. Many have become the key centers for R&D and innovation for their organizations. The most advanced ones have become virtually indistinguishable from the offices in their parent geography. A few factors we have noticed in the evolution of GCCs include:

  • GCCs are trusted to handle more complicated projects. The maturity of technology talent in key GCC markets such as India has risen rapidly since the pandemic. It is easier and faster to get a GCC up to speed than ever before. They are not only capable but are increasingly demanding to take end-to-end ownership of tech initiatives. As you establish trust, consider bringing your GCCs onto more innovation-oriented initiatives.
  • Frequent turnover and attrition continues to be challenging. This is more true in cases where GCCs do not have a seat at the table. Treating GCC staff as valued employees serves a key role in your success. Regardless of employment structure, if workers don’t feel that they have a clear career path, they will move to other opportunities. You must raise the profile of the work that you source from your GCCs.
  • India is a focal point of GCC growth. Over the last four years, revenue generation has significantly increased from India-based GCCs. At the GCC Summit, Nasscom revealed that India is now home to close to 1,800 GCCs, a number that is poised to grow beyond 2000 in the next two years. Access to a pool of digital and engineering talent at a large scale is drawing global firms to India.
  • An evolving trade landscape further boosts the appeal of GCCs. While there is no direct impact of the recent imposition of tariffs on US importing of goods, the resulting uncertainty from the move makes GCCs more attractive. GCCs, combined with a local entity, can serve as that neutral third-party offering flexibility, to firms in both the US and other economies, in mitigating the tariff impact. This is in addition to them taking advantage of GCCs’ ongoing evolution into higher-skill work, which they need at scale.

Anticipate The Boom And Bust Cycle To Develop Resiliency

We have seen GCCs go through ups and downs in the past. Firms must prepare their GCCs to both supercharge their growth and provide cover during economic downturns. For these trends to work in your favor, you must ensure a longer-term commitment to your GCCs. Reverting to a traditional, purely transactional model midway through a contract would be the worst of both worlds, demoralizing GCC partners and compounding your costs. Ensure that your internal stakeholders agree on your GCC approach and stay the course throughout, and note that there is much more to do to get your GCC strategy and approach right.

By Your Side For GCC Expertise

This is an exciting time for GCCs, and Forrester is monitoring the space closely. Read our report, Global Capability Centers: A Rising Tide, for further insight into the growing enthusiasm for GCCs and how to avoid the boom-bust dynamic that persists, and keep an eye out for our upcoming report on maximizing value from your GCC, where we will share findings from our research on the practices that mature GCCs follow.

If you are a Forrester client, set up a guidance session with Bill Martorelli or Ashutosh Sharma to learn more about the current state of GCCs, best practices for working with them, and how you can best leverage their capabilities for your business.