Nearly 500 Global Capability Centres (GCCs) in India are reportedly failing to realise their full potential and have begun to plateau, according to a report released on Friday, 10 July by research and advisory firms UnearthIQ and Embark. The report argues that a strategic reset — one that prioritises enterprise value, leadership depth, and AI capability over cost savings — is now essential for these centres to remain relevant.

Scale of the Plateau

Around 30 per cent of GCCs established after 2020 have already plateaued, representing approximately 140–150 centres. When combined with an estimated 360–370 centres set up before 2020, the total number of underperforming or stagnating GCCs approaches 500–520.

The report notes that the plateauing is driven by structural factors rather than operational shortcomings alone. Execution-focused mandates, limited leadership autonomy, weak alignment with evolving enterprise priorities, underinvestment in AI and platform capabilities, and fragmented technology and data foundations are collectively preventing many GCCs from moving into higher-value roles within their parent enterprises.

The Broader GCC Momentum

Despite the plateau concern, India's GCC sector continues to show strong overall momentum. The country is expected to host more than 2,500 GCCs by 2030, driven by robust global demand, supportive policy tailwinds, and the rapid rise of next-generation nano GCCs anchored in AI, digital, and innovation-led functions.

Notably, this growth surge makes the divergence within the sector more pronounced — while the headline count climbs, a significant subset of centres risks being left behind as enterprise expectations shift from cost efficiency to business impact, ownership, and innovation.

What the Report Recommends

'The plateau is not a sign of failure; it is a sign that the GCC model in India has reached an inflection point. Most GCCs are built to scale delivery. Few are designed to sustain relevance. The difference lies in design strength and execution discipline,' said Gaurav Vasu and Shail Maniar, Co-founders of UnearthIQ.

The report emphasises that the centres which define the next phase will be those that get foundational choices right early — covering governance models, talent strategy, and technology backbone. Aravind Maiya, Co-founder and CEO at Embark, echoed this: 'The centres that define this next phase, will be the ones that get the foundational choices right early, from the right governance model, the right talent strategy, and the right technology backbone to scale on.'

Structural Gaps Holding GCCs Back

The report identifies a cluster of structural weaknesses common to plateauing centres: over-reliance on delivery mandates, insufficient investment in AI and platform infrastructure, and a disconnect between the GCC's operating model and the parent enterprise's evolving strategic priorities. These gaps, the report argues, are not easily resolved through incremental tweaks — they require a deliberate redesign of how GCCs are governed and led.

As global enterprises increasingly look to their India centres for innovation and ownership rather than just cost arbitrage, the pressure to evolve is expected to intensify through the rest of the decade.