AI, Cloud Turn Global Capability Centers into Core IT Assets

Enterprises and providers build GCCs that go beyond cost savings, fostering innovation and competitive advantage, ISG Provider Lens™ report says

Enterprises are partnering with service providers to build global capability centers (GCCs) that go far beyond traditional outsourcing, serving as digital nerve centers and innovation engines, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a global AI-centered technology research and advisory firm.

The 2025 ISG Provider Lens™ Global Capability Center (GCC) Services report finds that GCCs are evolving from cost-saving back-office operations into strategic enablers of digital transformation. Companies are using GCCs as centers of excellence for AI-enabled automation, real-time analytics, customer experience improvements and advanced cybersecurity. They are turning to service providers for help in establishing the AI readiness, talent and location strategies they need to set up successful GCCs.

“Companies are discovering they can use GCCs for more than labor arbitrage,” said Rajib Datta. “For enterprises that partner with the right provider, a GCC can support critical operations and incubate new digital capabilities for competitive advantage.”

GCCs are becoming hubs for business intelligence and predictive analytics, generating real-time insights into risk management, operational efficiency and other areas, the report says. Some enterprises are also using GCCs to develop new capabilities in specific domains, such as digital supply chains, customer experience management and regulatory compliance.

Enterprises now have several ways to set up and operate GCCs, ISG says. They are selecting the path that best suits their goals, scalability needs and risk strategies. Greenfield GCC projects allow full ownership and control but require significant investment. Build-operate-transfer arrangements allow a company to have an outside provider set up and run the center at first before placing it in the enterprise’s hands. Joint ventures with local partners can reduce risk and take advantage of market expertise. Many companies are now choosing multi-location hybrid models, spreading a GCC’s footprint across geographies to distribute risk and access specialized talent.

Increasingly, companies are taking a cloud-first approach to GCC architectures, and this is becoming a foundational principle in the field, the report says. Cloud-first environments can enhance the security, scalability and agility of a GCC. Many service providers are forming alliances with hyperscalers, along with tech startups and consulting firms, to deliver end-to-end GCC solutions.

In the next phase of evolution, within this decade, GCCs are expected to become autonomous, AI-driven decision-making units that enable digital transformation at scale, ISG says. Agentic AI will constantly analyze, refine and enhance processes with minimal human intervention, while GenAI will assist in activities such as financial forecasting and strategic planning. Using AI to augment GCC workforces is already gaining traction as companies automate routine processes, allowing employees to focus on more strategic tasks.

“As GCCs evolve, providers will continue to deliver AI-based solutions that enhance efficiency and agility,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “This is a major opportunity for enterprises to accelerate innovation.”

The report also explores other trends affecting enterprise GCC projects, including the entry of many new service providers into the market and the blurring of lines between traditional outsourcing and GCC models.

For more insights into the GCC-related challenges enterprises face, plus ISG’s advice for addressing them, see the ISG Provider Lens™ Focal Points briefing here.

The 2025 ISG Provider Lens™ Global Capability Center (GCC) Services report evaluates the capabilities of 28 providers across two quadrants: GCC Design and Setup and Optimization and Enhancement.

The report names Accenture, Capgemini, Cognizant, Deloitte, EY, HCLTech, IBM, Infosys, KPMG and TCS as Leaders in both quadrants. It names ANSR and Wipro as Leaders in one quadrant each.

In addition, Persistent Systems is named a Rising Star — a company with a “promising portfolio” and “high future potential” by ISG’s definition — in two quadrants. Tech Mahindra is named a Rising Star in one quadrant.

Customized versions of the report are available from Accenture, ANSR, BCT, HCLTech, Infosys, Persistent Systems and Torry Harris.

The 2025 ISG Provider Lens™ Global Capability Center (GCC) Services report is available to subscribers or for one-time purchase on this webpage.

About ISG Provider Lens™ Research

The ISG Provider Lens™ Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG's global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG's enterprise clients. The research currently covers providers offering their services globally, across Europe, as well as in the U.S., Canada, Mexico, Brazil, the U.K., France, Benelux, Germany, Switzerland, the Nordics, Australia and Singapore/Malaysia, with additional markets to be added in the future. For more information about ISG Provider Lens research, please visit this webpage.

About ISG

ISG (Nasdaq: III) is a global AI-centered technology research and advisory firm. A trusted partner to more than 900 clients, including 75 of the world’s top 100 enterprises, ISG is a long-time leader in technology and business services that is now at the forefront of leveraging AI to help organizations achieve operational excellence and faster growth. The firm, founded in 2006, is known for its proprietary market data, in-depth knowledge of provider ecosystems, and the expertise of its 1,600 professionals worldwide working together to help clients maximize the value of their technology investments.

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Companies are discovering they can use GCCs for more than labor arbitrage. For enterprises that partner with the right provider, a GCC can support critical operations and incubate new digital capabilities for competitive advantage.