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GCCs as Centers of Excellence: Driving Value Creation Beyond Shared Services 

Mandar Sathe,

GCC Leader & Advisor,

Global Capability Centres (GCCs) have evolved significantly from their early days as cost-saving offshore units focused on back-office support. Today, they serve as strategic hubs of innovation, talent, and business transformation. Organizations worldwide are increasingly leveraging GCCs as Centres of Excellence (CoEs), driving operational efficiencies, innovation and competitive advantage beyond traditional shared services. This transformation is reshaping the global business landscape, positioning GCCs as a critical component of enterprise success.

The Evolution of GCCs: From Cost Arbitrage to Strategic Hubs 

GCCs were initially established to handle routine business functions such as IT support, finance, HR, and customer service. Their primary objective was cost reduction through labour arbitrage. However, as global enterprises recognized the potential of highly skilled talent in these centres, GCCs began taking on more complex, high-value functions such as product development, digital transformation, cybersecurity, and data analytics. With the advent of AI/ML and other emerging technologies one can only imagine how much value the GCCs can generate. Today, they play a pivotal role in shaping corporate strategy, innovation, and market expansion.

Key Drivers of the GCC Transformation 

1. Access to Skilled Talent: Emerging economies, especially India, have become technology powerhouses, offering access to world-class talent in AI, cybersecurity, cloud computing, and digital engineering. GCCs now house some of the best global minds driving enterprise innovation. 

2. Technology and Innovation: Companies are leveraging GCCs to build cutting-edge solutions in areas such as automation, machine learning, and cybersecurity, ensuring they stay ahead of competition. 

3. Operational Excellence: GCCs have matured into process excellence hubs, setting global benchmarks for efficiency, standardization, and compliance across industries. 

4. Data and Analytics: Advanced analytics capabilities within GCCs enable data-driven decision-making, optimizing business performance and customer engagement. 

5. Enhanced Collaboration: Modern GCCs work seamlessly with headquarters and business units worldwide, ensuring a globally integrated, innovation-driven approach to service delivery.

GCCs as Centres of Excellence: The New Paradigm 

Transitioning from a shared services model to a Centre of Excellence involves a fundamental shift in mind-set and operational approach. As CoEs, GCCs focus on high-impact areas that directly contribute to business growth and differentiation.

How GCCs Are Driving Value Creation Beyond Shared Services 

1. Product and Technology Innovation

  • Many GCCs now lead core R&D and product innovation, developing new offerings that generate direct revenue. 
  • They serve as testbeds for emerging technologies, experimenting with AI, blockchain, and IoT to enhance enterprise solutions. 

2. Customer Experience Enhancement  

  • By leveraging advanced data analytics and AI-driven insights, GCCs optimize customer interactions, improving engagement and retention. 
  • They provide localized and personalized digital solutions that align with diverse global market needs. 

3. Cybersecurity and Risk Management 

  • GCCs play a crucial role in strengthening enterprise security frameworks, ensuring data protection and compliance with international regulations. 
  • They implement robust cybersecurity strategies, mitigating risks and safeguarding business continuity. 

4. Digital Transformation and Process Automation  

  • GCCs drive enterprise-wide digital initiatives, automating business processes to improve efficiency and scalability. 
  • Adoption of RPA (Robotic Process Automation) and AI-powered workflows helps streamline operations and reduce turnaround times. 

5. Agility and Scalability 

  • By acting as agile hubs, GCCs enable businesses to quickly adapt to market changes, regulatory shifts, and new customer demands.
  • Their ability to scale operations on demand ensures resilience in times of economic uncertainty. 

Building a Future-Ready GCC: Key Success Factors 

For organizations looking to transform their GCCs into high-impact Centres of Excellence, certain strategic enablers must be in place:

Leadership and Vision: Strong executive sponsorship and clear strategic goals help position GCCs as an integral part of enterprise success.  

Talent Development: Investing in upskilling and fostering an innovation-driven culture enhances workforce capabilities and engagement.  

Technology Adoption: Embracing cloud, AI, and automation accelerates GCC maturity and enhances its global contribution.  

Ecosystem Collaboration: Partnering with startups, academia, and industry consortia fosters coinnovation and knowledge exchange.  

Metrics and Governance: Defining clear KPIs and aligning GCC performance with enterprise objectives ensures sustained value creation.

The role of GCCs has transformed far beyond cost efficiency. As Centres of Excellence, they drive innovation, enhance customer experiences, and contribute directly to business growth. Organizations that embrace this evolution will not only stay ahead in the digital era but also establish their GCCs as indispensable strategic assets in the global business landscape. The future of GCCs is not just about supporting operations—it is about leading enterprise transformation.

The Journey Into Industry

Mandar Sathe is a dynamic and accomplished C-level executive with a distinguished career in global business and technology leadership. With extensive experience across the US, UK, Europe, India, and APAC, he has successfully driven large-scale transformation initiatives, built high-performance teams, and led organizations to operational excellence and sustainable growth.

Mandar has a proven track record in P&L oversight, digital transformation, and strategic execution, enabling enterprises to optimize operations, accelerate innovation, and create market-leading solutions. He has spearheaded the growth of global capability centers, delivering cutting-edge technology products while enhancing operational efficiency, security, and compliance.

A passionate advocate for emerging technologies, Mandar believes in leveraging innovation to drive business success. He is recognized for his ability to align technology with strategic objectives, foster a culture of excellence, and inspire organizations toward future-ready, scalable, and competitive growth.



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