IMS OneWorld

Japanese enterprises have long been known for their operational excellence, commitment to quality, and long-term strategic planning. As global business environments become increasingly interconnected, many organizations are evolving their operating models to strengthen cross-border collaboration while maintaining robust governance and operational control.

One approach that is seeing growing adoption is the establishment of a Global Capability Center (GCC) in India. While GCCs were initially designed to support technology and shared services, they have since evolved into enterprise-wide hubs that deliver capabilities across finance, engineering, research, digital transformation, customer experience, procurement, and business process management.

India has become a preferred destination for this strategic expansion due to its highly skilled talent pool, well-established business ecosystem, advanced digital capabilities, and growing culture of innovation.

According to Deloitte, India is home to one of the world’s largest and fastest-expanding GCC ecosystems, with more than 1,700 centers playing a critical role in supporting global operations and driving innovation. This sustained growth continues to attract multinational enterprises looking to build scalable operational capabilities and support long-term business expansion.

This article highlights seven key reasons why Japanese enterprises are increasingly selecting India as the destination for their next Global Capability Center.

1. Access to a Highly Skilled and Diverse Talent Pool

India offers one of the world’s largest talent pools across engineering, information technology, finance, analytics, artificial intelligence, legal services, human resources, customer operations, and business process management.

For Japanese enterprises, this provides the opportunity to build multidisciplinary teams that support a wide range of global business functions from a single location.

Every year, Indian universities produce millions of graduates, while an experienced workforce continues to expand expertise across critical business domains, including:

Software engineering

Product development

Finance and accounting

Data analytics

Supply chain management

Digital marketing

Cybersecurity

Business process management

This depth and diversity of talent enables a Global Capability Center to move beyond transactional support and become a strategic hub for innovation, operational excellence, and enterprise growth.

2. Strong Government Support for Global Business Expansion

India has consistently strengthened its business environment through policies and initiatives designed to encourage foreign investment and long-term enterprise growth.

Key government initiatives include:

Expansion of digital infrastructure

Simplified business regulations

Development of industrial corridors

Special Economic Zones (SEZs)

Partnerships with the startup ecosystem

State-level incentives for technology and innovation investments

These initiatives provide multinational enterprises with a supportive environment for establishing an India GCC while enabling scalable, long-term operations.

In addition, many state governments actively partner with global organizations through investment facilitation, infrastructure development, workforce enablement, and talent development programs, making India an increasingly attractive destination for strategic business expansion.

Building the Right GCC Strategy

Establishing a Global Capability Center involves far more than selecting the right location. Long-term success depends on designing an operating model that aligns people, processes, technology, governance, and enterprise objectives.

IMS OneWorld supports organizations through strategic outsourcing advisory, helping enterprises evaluate, design, build, operate, and scale Global Capability Centers. Its advisory-led approach combines strategic planning with integrated execution across talent, operations, compliance, and technology, enabling businesses to build scalable operating models with greater visibility, control, and long-term value.

The next phase of GCC growth in India is increasingly defined by functional alignment, workforce sustainability, and long-term operating models. With more than 2,000 Global Capability Centres employing over 1.9 million professionals and contributing 31.3 million sq. ft. of office leasing in 2025, India’s GCC ecosystem continues to evolve. As the market matures, enterprises are expanding beyond established metro hubs into emerging cities that provide competitive operating costs, access to skilled talent, and greater capacity for scalable growth.

This shift reflects a more strategic approach to location selection. Rather than prioritizing cost alone, enterprises are choosing cities based on their ability to support specific business functions, talent requirements, and future expansion plans. For organizations evaluating a GCC in India in 2026, emerging cities present a compelling combination of operational readiness, workforce availability, and long-term scalability.

Why Emerging Cities Are Becoming a Strategic Choice

Emerging cities are strengthening their position within India’s GCC landscape by offering a balanced mix of cost efficiency, talent availability, and operational resilience. Compared with major metropolitan locations, many Tier II cities provide lower operating expenses while supporting stronger employee retention and reduced attrition across several functions.

The business case is also reinforced by continued infrastructure development, supportive state government policies, and the growing adoption of multi-city operating models. Together, these factors enable enterprises to diversify operations, improve business continuity, and establish GCCs with greater flexibility and sustainable long-term growth.

How Enterprises Should Evaluate an Emerging GCC City

A strong GCC in India location decision should be built around a practical evaluation framework rather than a broad Tier I versus Tier II comparison.

Enterprises should assess six factors in sequence:

1. Talent depth by function

Evaluate whether the city is stronger in BFSI operations, IT/ITES, engineering, analytics, BPM, or support services.

2. Functional adjacency

The strongest locations usually have nearby sectors, institutions, or operating ecosystems that reinforce the work being built.

3. Connectivity and leadership access

Air links, regional access, and ease of executive travel affect governance rhythm and scaling speed.

4. Workplace and campus readiness

Look for SEZs, IT parks, plug-and-play facilities, and space for phased expansion.

5. Governance and regulatory fit

Some cities are stronger for regulated finance, compliance-intensive work, or technology operations that need structured control environments.

6. Scalability over three to five years

A city should support the first build and the next operating phase, not only launch-year hiring.

Private equity-backed enterprises operate under continuous pressure to generate value at speed. Growth expectations are ambitious, operational efficiency is essential, and leadership teams are expected to scale capabilities without introducing unnecessary complexity.

For many portfolio companies, setting up a Global Capability Centre (GCC) in India has become a well-established strategy for accessing skilled talent, enhancing operating leverage, and enabling global expansion. However, as India’s GCC ecosystem continues to evolve, an increasing number of PE-backed enterprises are recognising that traditional metro cities may no longer represent the most effective route to sustainable long-term growth.

For many years, cities such as Bengaluru, Hyderabad, Pune, Chennai, and NCR led GCC expansion across India. These locations developed mature ecosystems, attracted significant multinational investment, and became synonymous with offshore delivery excellence. However, the very factors that drove their success have also introduced a new set of challenges.

As a result, forward-thinking enterprises are broadening their GCC location strategy by looking beyond metro India to unlock greater advantages in cost efficiency, talent availability, scalability, and operational resilience.

The Evolving Economics of PE-Backed GCCs in India

Private equity firms assess every investment through the lens of value creation. When portfolio companies establish delivery centres in India, the objective extends well beyond cost savings. The emphasis is on building sustainable operating leverage, developing scalable capabilities, and accelerating business performance.

This shift fundamentally changes how location decisions should be evaluated.

A decade ago, metro cities offered distinct advantages. They concentrated large talent pools, provided stronger infrastructure, and supported well-developed business ecosystems. Even today, India’s major metropolitan cities continue to dominate the GCC landscape. In 2025, GCCs accounted for more than 32.5 million sq. ft. of the approximately 80.5 million sq. ft. of gross leased office space across the country’s top seven cities, representing over 40% of total office leasing activity.

However, for PE-backed growth strategies focused on efficiency and scalability, rising operating costs, increasing competition for talent, and higher attrition rates can gradually diminish long-term returns.

In comparison, Tier-2 cities present an attractive alternative. They offer multinational organisations 10–35% savings in real estate and operational costs, while also providing access to underutilised talent pools and favourable state government incentives.

The question is no longer whether India remains a preferred destination for GCC investment. Instead, the real consideration is whether metro India continues to be the most strategic choice for the next phase of GCC expansion.

Talent Availability Is Expanding Beyond Metro Cities

One of the most notable shifts in India’s workforce landscape is the growing geographic diversification of skilled talent.

Universities, engineering colleges, business schools, and professional training institutes have expanded considerably across Tier-2 cities. This has enabled enterprises to access highly qualified professionals without relying solely on traditional metropolitan hubs for recruitment.

Cities such as Ahmedabad, Coimbatore, Indore, Jaipur, Kochi, Chandigarh, Bhubaneswar, and Vadodara are producing skilled professionals across a wide range of functions, including finance and accounting, data analytics, technology and software development, business process management, customer operations, digital marketing, and shared services.

For PE-backed enterprises establishing GCCs, this shift opens access to larger, less saturated talent markets. Instead of competing with hundreds of multinational organisations for the same workforce in metro cities, businesses can build operations in emerging locations where talent remains readily available and hiring competition is comparatively lower.

Setting up a Global Capability Centre (GCC) in India is one of the most significant strategic decisions a global enterprise can make. Yet before any office is leased or talent strategy is put into motion, one question almost always arises: Which GCC setup model is the right fit?

The answer is rarely straightforward. Each operating model comes with its own cost structure, risk profile, implementation timeline, and long-term impact on governance and control. Selecting the wrong model — or simply following the most common approach — can result in years of operational adjustments.

This blog explores the five primary GCC setup models in India: Captive, Build-Operate-Transfer (BOT), Build-Operate-Assist (BOA), Assisted Build, and Hybrid. It also provides a practical framework to help enterprises determine which model best aligns with their strategic priorities, organisational maturity, and risk tolerance.

Why Your GCC Operating Model Is a Strategic Decision, Not a Procurement Choice

The operating model you select influences much more than vendor engagement. It determines:

How rapidly your operations and talent can scale

The extent of operational risk your organisation assumes or transfers

Your ability to build proprietary IP, institutional knowledge, and company culture

Long-term governance, operational control, and cost optimisation

How your organisation develops internal capabilities over time

Many organisations approach operating model selection as a sourcing decision. The most successful GCCs, however, treat it as an architectural choice — one that must align with the enterprise’s global operating model, leadership capacity, and long-term strategic vision.

Understanding the Five Most Common GCC Setup Models in India

Model 1: Captive GCC — Full Ownership, Full Control

What Is a Captive GCC?

A Captive GCC is fully owned and managed by the parent enterprise. The organisation establishes its own legal entity in India and assumes responsibility for hiring, infrastructure, compliance, and day-to-day operations, while optionally engaging service providers for specific functions such as payroll or HR administration.

How It Works

The enterprise establishes its own legal entity in India.

Employees are hired directly under the company’s payroll and employment structure.

Governance, operational processes, and management remain fully in-house.

The organisation retains complete ownership of costs, risks, and outcomes.

Ideal For

Enterprises pursuing a long-term India strategy

Organisations that prioritise IP protection, data security, and cultural integration

Companies with the leadership capacity to manage setup and operations internally

Advantages

Complete control over talent, governance, and organisational culture

Strong protection of intellectual property and sensitive data

Greater cost efficiency as operations scale

Direct alignment with broader business objectives

Challenges

Significant upfront investment

Longer implementation and ramp-up timelines

High management involvement throughout the setup process

Greater exposure to execution and operational risks

When It Works Best

A Captive GCC is most effective for enterprises that view India as a long-term strategic location and are prepared to invest in ownership, governance, and capability building from the outset.

Model 2: Build-Operate-Transfer (BOT) — Managed Launch, Owned Outcome

What Is a BOT GCC?

Under the Build-Operate-Transfer (BOT) model, a specialised GCC advisory and enablement partner establishes and manages the India centre on behalf of the enterprise for a defined period — typically between two and four years — before transferring full ownership and operational responsibility to the parent organisation.

How It Works

The partner sets up the GCC, recruits talent, and manages day-to-day operations.

The enterprise maintains strategic oversight and business direction.

Operations are managed under the partner’s operating framework during the initial build phase.

Ownership of people, processes, governance, and operations is transferred to the enterprise at a predetermined milestone.

Ideal For

Organisations establishing their first GCC

Enterprises seeking to minimise setup complexity and execution risk

Companies that intend to own the GCC long term but lack local expertise or operational bandwidth

Advantages

Faster entry into the Indian market

Lower setup risk and operational complexity

Reduced upfront investment

Structured pathway to complete ownership

Challenges

Success depends significantly on selecting the right implementation partner

The transition phase requires careful governance and planning

Potential risks related to knowledge transfer and cultural integration

Additional operating costs during the managed phase

When It Works Best

The BOT model is best suited for enterprises seeking a faster, lower-risk market entry while establishing leadership, governance, and organisational culture from the beginning, ensuring a smooth transition to full ownership.

Still evaluating How to Choose the Right GCC Setup Model in India: Captive, BOT, BOA, Assisted Build, or Hybrid? IMS OneWorld helps global enterprises assess, establish, and scale GCCs with an operating model aligned to their business strategy, growth plans, and governance requirements.

India has firmly established itself as the preferred global destination for Global Capability Centres (GCCs). This is no longer a projection or emerging trend — it is a market reality supported by scale, talent depth, and a mature ecosystem that continues to attract enterprise investment across industries and regions.

Today, more than 2,100 GCCs operate across India, with over 506 Forbes Global 2000 companies maintaining a presence in the country. GCC leasing activity recently reached an all-time high of 31 million square feet, reflecting sustained expansion. Valued at approximately $98.4 billion in FY2025–26, the sector is growing at an annual rate exceeding 11%, with new GCC establishments continuing at a strong pace.

For most enterprises, the question of “Why India?” has already been answered. The more important consideration now is whether organisations are prepared to make the strategic decisions that determine whether a GCC evolves into a long-term business advantage or falls short of its potential.

India’s GCC Advantage: What Comes Next for Enterprise Leaders

The early wave of GCCs in India was largely driven by labour cost advantages. While cost optimisation remains an important consideration, leading enterprises today increasingly view GCCs as strategic capability centres that support functions such as engineering, analytics, AI/ML, product development, finance, legal services, and research.

As GCCs become more deeply embedded in enterprise growth strategies, setup decisions take on greater significance. Operating models influence scalability, governance frameworks shape collaboration with global teams, and talent strategies ultimately determine the long-term value a GCC can deliver.

India provides access to a vast talent pool and a highly developed GCC ecosystem. The key challenge for enterprise leaders is determining how to convert that access into sustainable capabilities, innovation, and measurable business outcomes.

Understanding the GCC Setup Journey

While each GCC follows a unique trajectory, the most successful centres typically progress through a series of structured phases — from defining the business mandate and selecting the right operating model to building talent, establishing governance frameworks, and achieving operational maturity.

India offers the advantage. The right setup decisions determine the outcome.

Discover the critical factors enterprise leaders must evaluate before establishing a GCC in India — from operating models and governance to talent strategy and long-term scalability.

India’s position in the global GCC landscape has transformed significantly over the past decade. Once regarded primarily as a hub for operational support, the country has evolved into a strategic destination for capability development, innovation, and enterprise transformation.

Today, India is home to more than 2,100 GCCs operating across nearly 3,730 units, employing approximately 2.36 million professionals and contributing close to $100 billion in annual revenue. More than 500 Forbes Global 2000 companies have established GCC operations in India, reinforcing its status as one of the world’s most mature and dynamic GCC ecosystems.

This growth reflects a broader shift in enterprise priorities. While cost efficiency remains relevant, organisations increasingly value access to specialised talent, advanced digital capabilities, operational resilience, and scalable growth models.

For companies assessing global expansion opportunities, India continues to stand out as a preferred destination for GCC establishment and sustained capability development.

How GCC Mandates in India Have Transformed

The earliest GCC models were primarily focused on transactional functions and operational efficiency. Over time, organisations expanded the scope of these centres to include shared services, technology support, and broader business operations.

Today’s GCCs operate with far more strategic responsibilities. Many lead initiatives across product development, engineering, data analytics, artificial intelligence, cybersecurity, finance transformation, and enterprise-wide digital programmes.

As a result, GCCs have become integral to global operating models, playing a direct role in driving innovation, business growth, and competitive advantage.

India has emerged as a key beneficiary of this transition, supported by a strong combination of talent availability, ecosystem maturity, infrastructure advancement, and favourable policy initiatives.

Five Key Drivers Behind India’s GCC Growth

India’s emergence as a leading destination for GCC setup is underpinned by several structural strengths that continue to gain momentum. Collectively, these factors enable organisations to access high-quality talent, scale operations efficiently, accelerate innovation, and build sustainable global capabilities.

For decades, enterprises expanding globally faced a familiar choice: building local operations, outsourcing key functions, or establishing a Global Capability Centre (GCC). In 2026, that decision has become far more strategic. As talent shortages intensify, operating costs shift, and growth expectations continue to rise, the way organisations build and scale global capabilities can have a direct impact on their competitive advantage.

As a result, GCCs are no longer viewed as traditional offshore delivery centres. They have evolved into integral elements of a broader global expansion strategy, enabling enterprises to access specialised talent, strengthen business operations, accelerate digital transformation, and develop scalable capabilities across multiple regions.

However, establishing a successful GCC involves much more than choosing a location and recruiting talent. Critical decisions around operating models, governance frameworks, capability scope, leadership structures, and long-term scalability will ultimately determine whether the GCC becomes a strategic driver of growth or an additional layer of operational complexity.

5 Critical GCC Decisions Every CEO Must Make

This evolution in enterprise thinking highlights a critical reality: GCC success today is driven less by infrastructure and more by strategic decision-making. The first decision is arguably the most important.

1. Define the Strategic Purpose of the GCC

While many enterprises continue to invest in GCCs, only a limited number achieve meaningful improvements in business outcomes and operational performance. In many cases, the gap stems from a lack of strategic clarity and alignment from the outset.

A high-performing GCC must be built around a clearly defined purpose that is closely aligned with the organisation’s long-term business goals. It should not be viewed as an independent offshore operation, but as an extension of the enterprise’s strategic agenda. Before selecting a location or designing the operating model, leaders must answer several fundamental questions:

Is the primary objective to drive cost optimisation and operational efficiency?

Is the business looking to access specialised expertise or hard-to-find digital talent?

Will the GCC serve as a catalyst for innovation and digital transformation?

Is the centre expected to function as a global delivery hub for enterprise operations?

Will it play a central role in the company’s broader global expansion strategy?

The answers to these questions influence every subsequent decision — from location selection and capability transition plans to governance structures, leadership models, and performance measurement frameworks. When a GCC’s mandate is clearly aligned with enterprise priorities, organisations typically gain stronger stakeholder support, attract greater investment, and create a stronger foundation for long-term strategic value.

2. Select the Right Operating Model

Once the purpose of the GCC has been clearly established, the next step is determining how it should be structured, operated, and scaled. In 2026, organisations have access to a wide range of operating models, moving well beyond the traditional captive-centre approach.

At one end of the spectrum is the captive GCC model, where the enterprise establishes and manages the centre as a wholly owned internal operation. This approach allows the organisation to integrate the GCC deeply into its business model, culture, and long-term capability strategy.

Alternative models such as Build-Operate-Transfer (BOT) and Build-Operate-Assist (BOA) offer greater flexibility. In these arrangements, a specialist partner helps establish and manage the GCC during its initial stages. BOT models are designed with a defined transition plan that eventually transfers ownership and operations to the enterprise, while BOA models provide ongoing strategic support through a collaborative, co-managed structure.

Enterprises seeking greater speed and flexibility are also exploring GCC-as-a-Service models, where strategic partners provide dedicated talent, infrastructure, and governance frameworks without the need for immediate entity creation. At the same time, nano GCCs and micro GCCs are gaining traction as smaller, purpose-built centres focused on specific products, business functions, or regional markets. These models enable organisations to test, refine, and expand their GCC footprint through a more modular approach.

Rather than relying on a single model throughout the lifecycle of the GCC, many enterprises adopt a combination of approaches over time. The optimal structure often depends on the organisation’s growth objectives, risk tolerance, investment strategy, and desired speed to market at each stage of its GCC journey.

Ready to build a GCC that delivers long-term strategic value?

Discover the five critical decisions every CEO must make to establish, scale, and optimize a Global Capability Centre in today’s rapidly evolving business landscape.

A Global Capability Centre (GCC) is a wholly owned offshore entity established to support the core and strategic functions of global enterprises. Unlike traditional outsourcing models, GCCs provide organisations with direct operational control, ensuring alignment with corporate objectives, governance standards, and long-term business strategies. India has established itself as the leading destination for GCCs, accounting for more than 53% of the global GCC presence in 2024, with nearly 1,700 centres operating across the country. This page highlights five key strategic benefits of setting up a GCC in India.

1. Access to a Skilled and Scalable Talent Pool

India offers a vast and diverse talent ecosystem, particularly across industries such as information technology, engineering, analytics, finance, and digital services. By 2025, more than 480 mid-market GCCs in India are expected to employ over 210,000 professionals. Additionally, nearly 50% of the total GCC workforce is concentrated within just 5% of Indian GCCs, comprising approximately 88 mega centres, demonstrating the scale of operations achievable in the country.

Indian professionals are widely recognised for their technical expertise, strong communication capabilities, and adaptability to global work environments, making India a reliable hub for high-quality offshore operations.

2. Strategic Cost Efficiency Combined with Scale and Quality

Establishing a GCC in India enables organisations to achieve significant operational cost efficiencies compared to Western markets. However, the advantage extends beyond cost savings alone. Indian GCCs increasingly enhance business outcomes through the adoption of automation, process optimisation, and advanced digital capabilities.

These efficiencies allow enterprises to reinvest resources into research and development, digital transformation initiatives, and broader strategic growth plans. In 2024, India’s GCC industry generated approximately USD 64.6 billion in revenue, with forecasts suggesting the sector could surpass USD 100 billion by 2030.

3. Greater Ownership, Control, and Strategic Governance

One of the primary differences between GCCs and third-party BPO providers is operational ownership. A GCC offers organisations complete control over their processes, enabling stronger governance, better alignment with internal standards, and enhanced intellectual property protection.

This level of oversight is especially important for businesses operating in highly regulated sectors such as BFSI, healthcare, and technology. Organisations gain direct visibility into operational processes, KPIs, and compliance frameworks, supporting improved risk management and continuous performance enhancement.

4. Innovation, Digital Transformation, and Higher-Value Functions

Today’s GCCs in India have evolved far beyond transactional support functions. Many now operate as strategic innovation hubs and Centres of Excellence (CoEs), leading enterprise-wide digital transformation initiatives. Approximately 83% of Indian GCCs are investing in generative AI and other emerging technologies, while 58% have already begun adopting agentic AI capabilities.

This transformation reflects a broader shift from traditional cost-focused outsourcing to capability-driven global delivery models, positioning Indian GCCs as critical contributors to enterprise innovation strategies.

5. Global Scalability and Time-Zone Advantage

India’s time zone (GMT +5:30) enables efficient 24×7 operations and supports seamless collaboration across APAC, European, and North American markets. Organisations leveraging “follow-the-sun” delivery models benefit from faster development cycles, improved operational continuity, and enhanced customer support.

India’s mature infrastructure, supportive government policies, and well-established IT ecosystem further strengthen its position as a preferred offshore development destination. By 2030, the number of GCCs in India is projected to exceed 2,400, reflecting the country’s sustained growth and strategic importance in the global business landscape.

Discover why India continues to lead the global GCC landscape and how enterprises are leveraging scalability, innovation, and operational control to accelerate growth.

Read the full blog here and explore how IMS OneWorld enables businesses to build future-ready Global Capability Centres with tailored offshore solutions, strategic workforce support, and operational excellence.

India has long secured its role as a leading destination for Global Capability Centres (GCCs). What is now evolving is the structure of these centres — and the profile of the enterprises establishing them.

For years, the GCC landscape was dominated by large-scale delivery hubs employing thousands of professionals. Today, a new operating model is gaining momentum: smaller, highly specialised, strategically designed capability centres that are reshaping how enterprises approach innovation through outsourcing.

India’s GCC Evolution Is No Longer Driven by Scale Alone

The GCC ecosystem in India has reached a new level of maturity. The country is home to more than 1,700 Global Capability Centres, with continued expansion projected through 2030. Historically, growth discussions focused heavily on workforce scale, cost efficiencies, and concentration in major hubs such as Bengaluru, Hyderabad, and Pune.

That focus is shifting. Organisations entering the India GCC ecosystem today are prioritising different outcomes: speed of capability development, specialised expertise, and stronger operational governance. Strategic value creation has become the primary driver.

Understanding Nano GCCs

Nano GCCs are lean, purpose-built capability centres, generally operating with teams of 50 to 300 professionals. Rather than supporting large-scale, process-heavy operations, these centres are designed to deliver focused, high-impact capabilities.

In contrast to traditional GCC models, nano GCCs in India are built around clearly defined functions — such as finance transformation Centres of Excellence, dedicated automation and technology teams, or specialised compliance and risk operations. Their structure emphasises agility, governance, and measurable business impact.

Discover how Nano GCCs are reshaping enterprise outsourcing in India — from agility and governance to specialised innovation capabilities.

The global capability centre model has evolved beyond its original focus on cost arbitrage. For enterprises managing complex, multi-functional operations, it now serves as a core structure for building and governing specialised capabilities at scale.

Organisations operating across multiple markets face an inherent structural strain that growth alone does not resolve. Demand for expertise in areas such as finance, technology, human resources, procurement, data analytics, and customer experience continues to exceed the capacity to develop and sustain these capabilities within each local market.

Establishing deep specialist talent across every function and geography introduces high cost, inconsistency, and governance challenges. This often results in fragmented execution, reduced visibility, and an operating model that struggles to match increasing organisational complexity.

In response, enterprises have redefined their functional architecture. Global capability centres are no longer positioned as cost-saving mechanisms but as strategic enablers of specialised scale. Understanding this shift requires examining both the transformation of the model and the expectations it places on enterprise leadership.

From Cost Centres to Strategic Architecture

The earliest iteration of the GCC operating model was primarily about labour arbitrage. Enterprises relocated transactional and back-office work to lower-cost geographies to reduce operating costs. That logic still holds in part — but it no longer defines the model.

What has changed is the depth and scope of what enterprise capability centres are now expected to deliver. A technology capability centre is no longer a ticket-resolution hub. A finance capability centre is not simply a transaction-processing unit. A data and analytics capability centre is not a reporting function. These structures are now expected to deliver domain expertise, process maturity, and functional leadership that genuinely support enterprise decision-making.

The shift reflects a broader strategic reality. Enterprises need functional specialists — not generalists spread thin across too many tasks. They need delivery structures that are governed, measurable, and aligned to business outcomes. And they need the ability to scale that specialist capacity without rebuilding the infrastructure each time business needs evolve.

Outsourcing is often approached as a delivery decision. A function needs support, costs must be controlled, service levels need improvement, or capacity must scale. The process typically moves quickly: identify a provider, plan the transition, and focus on execution.

This approach is common — and where many outsourcing models begin to fail.

In reality, outsourcing outcomes are largely determined before execution starts. Issues such as unclear scope, weak accountability, poor reporting, slow escalation, and inconsistent SLA performance usually originate earlier. The problem is rarely execution alone. More often, it is the absence of a structured diagnosis before implementation. This is where outsourcing services need to be evaluated beyond execution and aligned with a clearly defined operating model.

This is where outsourcing advisory becomes critical. A formal advisory phase defines what should be outsourced, what should remain internal, how the delivery model should be structured, where dependencies exist, and what governance is required to sustain performance. Without this foundation, even a capable delivery team inherits a model that lacks clarity and control. Well-structured outsourcing services are built on this advisory layer, not just delivery capability.

For enterprise decision-makers, the key question is not only which provider to select, but whether the operating model has been properly diagnosed before execution begins.

Why Execution-First Outsourcing Underperforms

Outsourcing initiatives frequently underperform because the decision to outsource precedes a clear understanding of the operating environment.

This often results from urgency. Processes are inefficient, turnaround times are slipping, and internal pressure builds. Outsourcing appears to be the fastest solution. However, when executed without diagnosis, the external model simply inherits internal inefficiencies. In such cases, outsourcing services replicate existing gaps instead of resolving them.

Fragmented workflows remain fragmented. Unclear approval structures remain unresolved. Reporting gaps persist despite contractual agreements.

Execution-first models create the illusion of progress while leaving core issues unresolved. Scope expands unpredictably, ownership becomes unclear, and performance expectations are set without baseline understanding. Governance is introduced reactively rather than designed upfront. This weakens the long-term effectiveness of outsourcing services, even when delivery teams perform well.

Effective outsourcing consulting begins with operational clarity, not vendor selection. The starting point must be the business problem, not the delivery mechanism.

What Diagnosis Means in Outsourcing

Diagnosis is not a theoretical exercise. It is a practical step to enable better operational decisions.

In outsourcing, diagnosis involves analyzing how work flows through the business, identifying friction points, understanding dependencies, and defining conditions required for a successful external model. This stage determines how outsourcing services should be structured to support actual business needs rather than assumed requirements.

A structured diagnostic phase should address five areas:

Workflow design: task movement, bottlenecks, and hand-off inefficiencies

Process maturity: stability, repeatability, and readiness for scale

Roles and ownership: clarity of accountability across functions

Governance readiness: reporting structure, escalation paths, SLA discipline, and performance metrics

Compliance and continuity: regulatory and operational control requirements

A thorough diagnosis provides an accurate foundation for model design before execution begins and ensures outsourcing services are aligned with operational realities.

The Cost of Skipping Advisory

Bypassing the advisory stage may accelerate initial timelines but weakens long-term outcomes.

Scope confusion: prolonged effort to define responsibilities and boundaries

Governance gaps: lack of visibility due to undefined KPIs and reporting structures

Stakeholder resistance: reduced internal alignment when models feel imposed

Delayed value realization: slower improvements in efficiency, accuracy, and control

Commercial inefficiency: higher costs to stabilize poorly designed models

These issues directly affect how outsourcing services perform over time, often requiring rework that could have been avoided with early-stage diagnosis.

Enterprise operations are entering a more demanding phase. Leaders are no longer balancing cost alone — they are prioritizing efficiency alongside resilience, governance, execution speed, and access to specialized expertise. This shift is redefining how organizations assess outsourcing services delivery models, and select long-term partners.

The Evolution of Enterprise Outsourcing in 2026

Outsourcing is no longer a tactical cost decision. It has become a core part of how enterprises operate. Businesses now function across layered ecosystems that include internal teams, shared services, global capability centers, external providers, and automation. In this environment, business outsourcing services are expected to do more than deliver tasks — they must enhance control, enable transformation, improve service quality, and establish clear accountability.

As a result, leadership teams are rethinking how they approach outsourcing decisions. The emphasis is shifting toward performance, adaptability, governance, and long-term operational value across business outsourcing services.

1. Shift from Cost to Outcomes

Organizations are moving toward outcome-driven outsourcing. The focus is on measurable impact — service quality, operational improvement, and transparency. Cost still matters, but it is no longer the primary driver.

This requires tighter governance and clearly defined KPIs linked to business results. Providers are evaluated based on how effectively they improve operations, not just how much work they deliver.

2. Expansion of Managed Services

Managed services are extending across multiple functions, including finance, HR, IT, compliance, and customer operations. Enterprises are looking for structured, end-to-end support across interconnected functions.

This increases demand for providers who can operate across domains with consistency and unified oversight, rather than managing isolated services.

3. Reduction in Vendor Complexity

Managing multiple vendors creates fragmented reporting, duplicated oversight, and unclear accountability. Enterprises are responding by consolidating their provider base.

Fewer partners with broader capabilities allow for clearer governance, streamlined communication, and stronger operational control.

4. Rise of Hybrid Delivery Models

Hybrid models — combining internal teams, external providers, shared services, and automation — are becoming standard.

The challenge is no longer deciding what to outsource, but how to integrate all delivery layers effectively. This makes operating model design and governance critical to success.

5. Governance as a Core Requirement

Governance has become a decisive factor in provider selection. Enterprises expect strong reporting frameworks, auditability, structured review cycles, and risk oversight.

Trust is now built on transparency and control as much as on delivery capability.

6. Integration of AI into Service Delivery

AI is being embedded directly into outsourcing workflows, from automation and analytics to reporting and repetitive task execution.

This improves speed, consistency, and scalability, but also raises expectations around data governance and operational discipline.

7. AI-Driven Customer Support

Customer support is a key area of AI adoption. Automation helps manage volume and standardize responses, while human teams handle complex or sensitive interactions.

The most effective models combine efficiency with human judgment, creating balanced and scalable service environments.

IMS OneWorld’s Alignment with Market Direction

IMS OneWorld reflects this shift by positioning itself as a single, accountable partner. Its approach focuses on designing, optimizing, and managing business operations with clarity, governance, and measurable outcomes.

Its service scope spans finance, HR, IT, compliance, marketing, customer experience, research, and automation. By integrating advisory and execution within a unified framework, it reduces fragmentation and improves visibility and control.

Conclusion

Outsourcing in 2026 is defined by discipline and strategic intent. Enterprises are demanding more — stronger governance, measurable performance, integrated capabilities, and AI readiness. Outsourcing is no longer peripheral; it is central to how modern organizations operate and scale.

Healthcare enterprises are under ongoing pressure to improve service delivery while managing operational costs. This has intensified the evaluation of outsourcing versus in-house operations. The choice now influences staffing, back-office efficiency, patient support, and long-term scalability, extending beyond cost considerations to include expertise, efficiency, and flexibility.

Outsourcing presents a structured approach to enhancing operational performance through healthcare business process outsourcing by delegating non-core functions to external specialists. In-house models remain essential for areas requiring direct oversight, clinical direction, and internal coordination. Effective strategies depend on aligning each function with the model best suited to its requirements.

Healthcare outsourcing involves transferring selected operational and administrative functions to third-party providers. These typically include revenue cycle management, customer support, staffing, facilities management, and back-office administration.

Common outsourced functions:

Medical billing and coding

Claims processing

Appointment scheduling

Customer support

Administrative operations

Staffing support

Facilities management

This approach is often embedded within a broader business process outsourcing framework, enabling organisations to optimise costs, improve service delivery, and scale operations efficiently.

In contrast, in-house operations retain full control over processes, personnel, and systems, while increasing fixed costs and internal management complexity.

February 16, 2026 marks a major shift in how the Health Insurance Portability and Accountability Act (HIPAA) will be enforced. What was once open to interpretation is now becoming technically mandatory. Authentication, encryption, patient access timelines, breach reporting, and vendor accountability will all be strictly enforced.

Healthcare providers, payers, insurers, healthtech companies, and Global Capability Centers (GCCs) that support healthcare operations must treat HIPAA 2026 as a business-wide transformation initiative — not a policy update.

This guide outlines what needs to be in place before February 2026 to ensure audit readiness and operational continuity.

Why HIPAA 2026 Requires Immediate Action

The updated requirements introduce:

Mandatory multi-factor authentication (MFA) for all PHI access

Encryption of all electronic PHI (ePHI), both at rest and in transit

A 15-day maximum timeline for fulfilling patient record requests

A 24-hour breach notification rule for Business Associates

Expanded accountability across global and GCC-supported delivery models

Delaying action increases the risk of regulatory penalties, workflow breakdowns, and reputational harm.

HIPAA 2026 Readiness Checklist

The checklist below is structured across administration, technology, vendor governance, and GCC alignment.

1. Strengthen Administrative Foundations

Update the Notice of Privacy Practices (NPP)

Revise language to reflect the 15-day access requirement

Align Substance Use Disorder (SUD) data-sharing rules with updated consent standards

Clearly define patient rights for inspection and record copies

Publish the updated notice following legal review

Redesign Record Request Workflows

Map the full process from intake to delivery

Identify manual or paper-based bottlenecks

Implement automated tracking against the 15-day deadline

Build in a 3–5 day internal safety buffer

Test workflows across departments and GCC-supported teams

Manual, paper-heavy systems remain one of the most common compliance breakdowns — especially in hybrid onshore-offshore models.

2. Implement Mandatory Multi-Factor Authentication (MFA)

MFA must extend to:

Desktop and workstation environments

Mobile devices

Remote access systems

Patient and provider portals

Third-party applications

GCC-managed infrastructure

Key steps:

Conduct a full PHI access inventory

Select a secure push-based authentication solution

Run a phased pilot

Define backup authentication protocols

Train both onshore and GCC teams

MFA rollout should be completed well before enforcement deadlines.

3. Enforce Encryption Across All ePHI

Encryption at Rest

Encrypt servers, laptops, mobile devices, and backups

Apply AES-256 or equivalent standards

Document key management processes

Encryption in Transit

Ensure TLS 1.2 or higher across:

Email

File transfers

APIs

Portals

Data exchanges between GCCs and onshore teams

Action steps:

Validate encryption coverage across all systems

Conduct internal compliance audits

Maintain documentation for regulatory review

Legacy systems and shadow IT environments often create hidden vulnerabilities.

4. Update Business Associate Agreements (BAAs)

The 24-hour breach reporting rule requires contract revisions.

Required actions:

Identify all vendors and GCC partners handling PHI

Amend BAAs to include 24-hour breach notification

Align vendor encryption and MFA standards with internal policies

Add audit rights and indemnification clauses

Track completion and escalate non-compliance

Vendor governance must become continuous rather than periodic.

5. Strengthen Incident Response Protocols

Shorter reporting timelines demand faster coordination.

Execution priorities:

Update breach response playbooks

Define 24-hour escalation triggers

Conduct tabletop simulations

Ensure coordination across IT, legal, compliance, communications, and GCC operations

Establish 24/7 monitoring across global delivery centers

Document all response procedures

GCC environments must operate with real-time monitoring and response capability.

Global enterprises are under pressure to modernise faster, innovate continuously, and strengthen resilience without compromising security. India has emerged as a strategic hub for Global Capability Centres (GCCs), now hosting over 1,700 centres and 1.9 million professionals. These centres have evolved from support units into core engines driving product engineering, AI, data, cybersecurity, and digital transformation.

A GCC is an enterprise-owned offshore unit with direct governance and accountability. Unlike outsourcing, it operates as an integrated extension of the organisation, owning roadmaps, managing risk, and delivering measurable outcomes.

The Economic Survey 2025–26 positions GCCs as a structural pillar of India’s IT-ITeS growth, highlighting steady revenue expansion and a clear shift toward high-value, innovation-led work.

Key benefits for enterprises include:

Faster product development through persistent domain-aligned teams and platform standardisation

Access to deep digital and AI talent at scale

Stronger operational resilience with multi-site delivery models

Improved cost-to-serve driven by automation and capability uplift

Enhanced security and compliance through specialised cyber operations

India’s GCC ecosystem now represents strategic capability, not just cost advantage. Organisations that design GCCs as integrated, governance-led operating units unlock long-term performance and innovation gains.

The BFSI industry is evolving rapidly as banks, financial services firms, and insurers face stricter regulations, rising customer expectations, and continued cost pressure. In 2026, shared services — supported by global business solutions — are playing a critical role in helping organisations improve efficiency, strengthen compliance, and build operational resilience at scale.

Digital platforms, AI-driven automation, and data-led decision-making are no longer future goals. They are now central to how BFSI shared services operate and scale.

Digital Shared Services Are Now Standard

Digital shared services are no longer aspirational. They are the foundation of modern BFSI operations.

Financial institutions are adopting:

Cloud-native platforms

Digital workflows

Self-service portals for employees and customers

These capabilities help remove operational silos, reduce processing times, and improve end-to-end visibility across shared services functions.

AI-Driven Automation Improves Operational Efficiency

AI is transforming traditional shared services models. It reduces manual effort while improving accuracy and speed.

Common applications include:

Document and claims processing

Transaction validation and anomaly detection

Customer queries and service requests

By automating routine work, teams can focus on higher-value activities such as analysis, risk management, and service improvement.

Data-Centric Decision-Making Becomes Essential

Shared services in BFSI are evolving into central data hubs. They support real-time insights and better decision-making.

Key benefits include:

Unified data models across functions

Faster performance and risk insights

Stronger governance and reporting

Data governance frameworks are now a core part of shared services strategy.

Compliance and Risk Controls Are Embedded by Design

Regulatory pressure continues to increase across banking and insurance. Shared services now embed compliance directly into workflows.

This includes:

Automated compliance checks

Built-in audit trails

Standardised controls across regions

This approach improves audit readiness and reduces regulatory exposure.

Customer Support Becomes More Personalised

Customer service within shared services is becoming smarter and more responsive. AI chatbots and virtual agents are widely used.

These tools:

Deliver faster responses

Handle complex, context-aware queries

Provide consistent service across channels

This improves customer experience while reducing pressure on support teams.

Omnichannel Delivery Is a Core Requirement

BFSI customers expect seamless service across all channels. Shared services support this by ensuring data continuity and consistency.

This enables:

A single customer view

Fewer repeated interactions

Smoother transitions between digital, mobile, and branch channels

Omnichannel capability is now a standard expectation.

Sustainability and ESG Shape Shared Services Operations

ESG priorities are influencing shared services strategies. Sustainability is no longer optional.

Key initiatives include:

Paperless processes

Energy-efficient data centres

Sustainable sourcing practices

These changes support regulatory, investor, and social expectations.

Global Delivery with Local Compliance

Shared services models balance global scale with local requirements. This balance is more refined in 2026.

Organisations use:

Centralised global delivery hubs

Local regulatory frameworks

Region-specific compliance controls

This allows cost efficiency without compromising governance or cultural alignment.

Cloud-First Architecture Remains a Priority

Cloud adoption continues to accelerate. It supports agility, resilience, and cost optimisation.

BFSI organisations are moving towards:

Hybrid cloud environments

Multi-cloud strategies

This approach supports data residency rules while enabling faster innovation.

Workforce Evolution and Human–Digital Collaboration

Automation is changing the skills needed in shared services. The focus is on collaboration between people and technology.

Organisations are investing in:

Digital and data skills

Automation oversight

Cross-functional collaboration

Upskilling ensures human expertise complements machine efficiency.

IMS GBS: Supporting BFSI Shared Services Transformation

IMS Global Business Services (IMS GBS) supports BFSI organisations in modernising shared services through digital operations, automation frameworks, and data-driven models. With financial sector expertise, IMS GBS helps organisations improve efficiency, compliance, and workforce readiness across shared services functions.

Key capabilities include:

End-to-end shared services consulting

AI and automation execution

Scalable digital operations aligned with regulations

Workforce upskilling and change support

Conclusion

The shared services trends of 2026 reflect a fundamental shift in how BFSI organisations operate. Digital shared services, AI-driven automation, cloud-first architectures, and sustainable practices are now essential.

Financial institutions that embrace these changes will strengthen operational resilience, improve compliance, and achieve long-term competitive advantage in an increasingly complex market.

FAQs

What are shared services in BFSI? Shared services centralise functions such as finance, operations, customer support, and compliance to improve efficiency, consistency, and cost control.

How does AI benefit BFSI shared services? AI automates routine tasks, improves accuracy, speeds up processes, and enhances customer service across banking and insurance operations.

Why is cloud adoption important for BFSI shared services? Cloud platforms provide scalability, resilience, faster deployment, and cost efficiency while supporting regulatory and data security requirements.

How do shared services help with regulatory compliance? Compliance is embedded into workflows using automated controls, audit trails, and standardised processes, reducing regulatory risk.

What skills are required in modern BFSI shared services teams? Digital literacy, data analysis, automation management, compliance knowledge, and cross-functional collaboration are increasingly essential.

As workforce models evolve, organisations are increasingly turning to managed teams providers to achieve scalability, consistency, and performance within a broader global business solution strategy. Yet many partnerships fail to deliver value because provider selection is driven by cost or speed rather than strategic alignment.

A structured evaluation process is essential. Leaders must assess industry expertise, success measurement frameworks, recruitment rigor, training investment, communication protocols, data security, engagement flexibility, escalation processes, pricing transparency, and client validation. These ten areas reveal whether a provider is equipped to deliver outcomes as a true global business solution partner or merely supply headcount.

Managed teams partnerships succeed when expectations are explicit, performance is measurable, and accountability is embedded from the outset. Providers that invest in governance, talent quality, and continuous improvement operate as integrated global business solutions, extending internal capabilities rather than functioning as external vendors.