Only 8% GCCs made major gains in innovation, market edge, efficiency: BCG

Only 8 per cent of Global Capability Centres (GCCs) have advanced significantly across the three dimensions key to enterprise value innovation, competitive differentiation and operational efficiency, a new report from Boston Consulting Group (BCG) said.
India, the US, and Mexico emerged as the most balanced GCC ecosystems, with India uniquely combining scale, innovation, and efficiency, it said.
The report called for a step-change in how organisations structure, invest in, and activate their GCCs, not just as support engines, but as core drivers of innovation, AI adoption, and business outcomes.
While GCCs are evolving rapidly in scope and ambition, the majority remain focused on delivery execution, under-utilising their potential to act as capability hubs powering enterprise-wide transformation.
"A new report from Boston Consulting Group (BCG), 'Rewriting the Global Capability Center Playbook: Scaling Maturity with AI', finds that only 8 per cent of GCCs have advanced significantly across the three dimensions most critical to enterprise value innovation, competitive differentiation, and operational efficiency," it said.
The report found that tech, media, and telecom firms lead in maturity, driven by higher investment in AI initiatives and depth of innovation It underlined AI, advanced AI use cases, including GenAI, and AI agents, as critical accelerator of GCC maturity.
While top performers have moved beyond pilots to embed AI across core workflows, most GCCs remain trapped in early-stage experimentation, it said.
"GCCs which treat AI as a bolt-on will never close the gap," Rajiv Gupta, Managing Director and Senior Partner at BCG, said.
The frontrunners have strategically embedded AI into their operating models, at a scale which makes a material difference at the enterprise level. The leaders are not experimenting, they are delivering meaningful outcomes.
Over 90 per cent of top-performing GCCs implement advanced AI use cases versus about 50 per cent of others.
"The risk for others is falling into an autopilot mode," Gupta added.

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

Time of India

5 hours ago

• Time of India

Govt forms committee to submit proposals for e-buses

Vijayawada: State govt has formed a state level steering committee (SLSC) for the submission of proposals to the ministry of housing and urban affairs (MoHUA) for the procurement of electric buses under the 'PM e-Bus Sewa' scheme. The Centre sanctioned 750 electric buses to Andhra Pradesh under the PM e-Bus Sewa scheme. Chief secretary K Vijaynand issued a govt order RT No 310 to this effect, forming the SLBC on Thursday. According to the GO, the SLBC will be headed by the chief secretary as the chairman, with the special chief secretary (energy), principal secretaries of transport, roads and buildings, finance, municipal administration and urban development, and industries & commerce departments, along with the commissioner of the public transport department as the committee members. The ministry of housing & urban affairs (MoHUA) sanctioned 750 e-buses to AP to be operated in 12 locations across 11 cities. Pinnacle Mobility Solutions Pvt Ltd, Pune, along with the discovered GCC prices, is finalised as the agency for the induction of 750 e-buses in the state. The requisition for the procurement of the e-buses should be submitted to MoHUA under the PM e-Bus Sewa Scheme through the SLSC under the chairmanship of the chief secretary, the GO read.

Time of India

16 hours ago

• Time of India

ETMarkets Smart Talk: Shift debt allocation to short-term funds, maintain equity focus for stronger returns: Kush Gupta

As markets navigate through volatility and macro uncertainties, Kush Gupta, Director at SKG Investment & Advisory, remains optimistic about India's growth story in the second half of 2025. In an exclusive conversation, he shares insights on why the worst may be behind for Dalal Street, how recent rate cuts by the RBI are setting the stage for a liquidity-driven rally, and why sectors like BFSI, Defence, and Infrastructure are poised to lead the next leg of growth. Gupta also weighs in on global cues, including US-China trade tensions, the case for international diversification, and sectors that may be overheating. His outlook blends cautious optimism with a strategic approach to asset allocation, making it a must-read for investors preparing for the next market move. Edited Excerpts – Q) June is turning out to be a volatile month for D-Street. How is 2H2025 likely to pan out for Indian markets? Do you think most of the negatives are behind us? Live Events A) Last one month we have seen a lot of volatility, the result being that Nifty has been range bound, moving in a zig-zag pattern and not finding a one-way direction. This is mostly because of mixed news coming in and out and investor sentiment undecided. While there are green shoots in corporate earnings, interest rates, inflation and growing demand, there are certain critical issues that still persist. Geo-political unrest and foreign fund inflows are still a matter of concern. In H2 2025, I think we can expect this lingering negativity to go away, if India inc. numbers continue to get better we will see a one-sided upward movement in the market. Certain sectors like Infra, Health, BFSI will continue to grow and support the broader market. India while growing at 6.5% is still the most promising emerging market in the global economy and there is only upside from hereon. Q) What does 50 bps cut mean for equity and bond markets? What should be an asset allocation strategy? A) RBI's rate cut of 50 bps in their latest MPC meeting was more than what was expected on the street. Following that up with a cut in CRR ratio has ensured massive liquidity push in the credit market. If we talk about the impact on the investment side, we have now seen a one-sided reduction in the repo rate of 100 bps since February 2025 that will have a positive impact on the bond prices as they are inversely proportionate to the interest rates. We are advising clients to look at short term bond funds and expect accrual income in the future. On the equity side, we are expecting a liquidity boost, due to fall in the interest rates and fixed deposits investors are most likely to deploy less funds in these assets. Additional liquidity may boost up equities. Our asset allocation strategy is to shift Debt investments from long term funds to short term funds while not increasing overall allocation to debt because we are expecting equities to outperform in h2 2025. Q) What is your take on Q4 earnings from India Inc.? Any hits and misses which you tracked in the results? A) If we review Q4 earnings, aggregate profit after tax (PAT) for BSE 500 companies grew by 10% Y-o-Y and by 9% for the full FY25. There was sluggish domestic consumption and limited government spending in the first half due to elections and a volatile geo-political environment. This was a big step down from a stellar performance in FY24 that saw a 30% growth. BFSI sector stood out, contributing 1.84 % to the GDP and posted improved profits. Almost all stakeholders in the sector, MNCs, Private firms, Small & Midcap companies performed well. Metals, Telecom, Chemicals and Cement also supported positively to the growth. Certain sectors that showed sluggishness were PSUs, Industrials and IT. FY26 could see a turnaround, we expect the PAT growth to improve in most sectors on account of increase in demand and stability on the global trade front. US tariff wars could see a conclusion and that should bring a much needed respite and decrease volatility. We are bullish on BFSI which will continue to shine and have another good year, Agriculture and Defence is also looking to outshine in FY 26. Q) Nifty Bank hit a record high in June which suggests that there is a lot of interest in banking stocks. What is fueling rally in financials – is it the rate cut by RBI? A) As we discussed earlier, the BFSI sector has stood out in FY25 as an outperformer. Bank Nifty hit a record high in June following earnings growth numbers and a positive outlook for FY26. What was more positive is that we saw broad based growth across all verticals in BFSI. Banking, Wealth, Insurance across small , mid and large cap companies saw increase in earnings. If we look at number, on Y-o-Y basis, there was a 16% increase in PAT, 14% increase in Non-Interest Income, 13% increase in retail advance and 14% increase in MSME advances. These are very healthy numbers across the board. Recent rate cuts by RBI has definitely helped banks by providing excess liquidity but is not the only reason fuelling this rally. RBI rate cuts were as recent as February but we have seen good numbers coming in all through FY 25. Key factors supporting this rally are more on the fundamental side, most banks now have significant revenues coming in from non-interest activities such as wealth and insurance. They are high margin businesses with a huge growth potential. India still underserved and under penetrated when it comes to financial services; hence, there is a significant head room. Banks are sitting on credible data and are able to convert their existing CASA customers by cross selling and thus increasing their revenue per client. On the credit side, the growth cycle is strong and is expected to grow at 13-14% which should continue to support profits. NBFC's credit growth outpaced banks and will continue to do so in FY26. Q) Which sectors are likely to remain in limelight in the 2H2024? A) We are bullish on BFSI, with the recent RBI rate cut we can expect strong liquidity. There is scope for penetration for financial services, credit growth is growing strong. Supported with slight improvement in demand, we should see this sector giving another strong year. We are also taking positive calls on Defence fulled by governments efforts to have a self-sutainable defence industry and reduce the dependency on imports. The order pipeline here looks solid and defence production is projected to reach from Rs. 1.75 Trillion in FY25 to Rs. 3 Trillion in FY 29. The ministry of defence has already singed a record 193 contracts worth Rs. 2 Trillion. Out of these 177 contracts were handed to domestic companies, this shows the governments commitment of making India a defence manufacturer in their own right. Infrastructure and related sectors are also looking bullish, policy support is on their side particularly in the areas of renewable energy and power generation. Big infra companies will continue to benefit from India's growing infra need in Roads, Airports, Dams and Railways. Q) The tonality keeps changing from the US when it comes to 'Trade Talks'. Do you think it is still a relevant headwind for equity markets across the globe? A) In our view, US trade talks were never a major factor for equity markets in India. Yes, they played a role for equity markets across the globe, but for India it never posed a very big problem. There was a lot of stir created early on when the tariff wars started but soon it was realised that it was more of a bargaining stunt to get the stakeholders on the table to negotiate rather than a permanent change of structure in the global trade ecosystem. My only point of concern is FII inflow into our equity markets. While our DIIs have been a major support, we can't ignore the validation that comes from FIIs and the quantum of their capital that ensures Indian equities are in green. Trade Talks create a little uncertainty that results in institutional money being kept at bay, that's the only relevant headwind I think that matters. Q) China equity markets are up in double digits while we have underperformed most EM peers. Does it make a case for global diversification? A) China equity in recent times have outperformed all the other EMs. This is a little ironical seeing how the main target of US trade wars is China, and their companies are facing an uphill battle in case tariffs are increased substantially. I would still refrain from considering the Chinese stock market as an investment destination. The main reason being the opaqueness of the country and the dictatorial laws that can be brought down by the government onto the private sector. Inspite of giving double digit returns, the 3-yr performance of China based Mutual funds is still as low as 2%. For global diversification I think US tech stocks are a better bet. With AI changing the face of computing, I think the biggest beneficiaries will US companies who are the biggest stakeholders. Historically as well, US companies are at the center of every digital / computer revolution that has happened and I don't see why it should be any different now. Q) Which sector(s) is/are looking overheated and why? A) In Indian markets, I think one can be cautious while investing in Auto. FY25 saw a modest growth of 6.4% driven by passenger and two wheelers while the commercial vehicles growth remained flat. We have seen an impressive performance over last 24 months with increased sales across all verticals but going forward I think it's a little over heated. Also, the EV industry is giving the sector some headache, while most auto companies have installed EVE capacities, consumer acceptance of EV is not growing at a desirable pace. Adoption has been slow and due to EV related lack of Infra it is not expected to pick up very soon. We are also expecting a cyclical slowdown in sales, only silver lining are the SUV sales which continue to grow but other passenger vehicles along with two wheelers are looking bleak. ( Disclaimer : Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)

Hans India

a day ago

• Hans India

9 out of 10 recruiters in Hyderabad are investing up to half of their hiring budgets in AI and tech to hire smarter, faster: LinkedIn research

AI and innovation are growing stronger roots in Hyderabad, and the city's recruitment landscape mirrors this trend. New research from LinkedIn, the world's largest professional network, reveals that over 95% of recruiters in the city are allocating up to 50% of their budgets to tech and tools like AI to boost hiring success. LinkedIn's India Hiring ROI research, based on responses from over 1,300 HR professionals across 10 cities, finds that recruiters in Hyderabad are shifting from 'quick hiring' to 'quality hiring', with quality of hire (79%) emerging as the top measure of success, followed by time to hire (61%) and retention rate (60%). The definition of 'quality talent' is shifting – 74% recruiters in the city prioritise practical and transferable skills when defining talent quality. Ruchee Anand, Head of LinkedIn Talent Solutions in India, says, 'Recruiters across India are shifting focus from just filling roles to finding quality talent that drives business impact. Hyderabad is championing this evolution with investments in AI-powered tools to help them hire better. At this crucial juncture, 8 in 10 recruiters in the city are also seeing value in online platforms such as LinkedIn to deliver the highest recruitment ROI. As hiring grows more skills-first and strategic, LinkedIn's AI-powered tools are helping talent leaders unlock stronger candidate engagement and build an agile workforce.' Talent gaps key challenge across sectors Across India, sectors like IT & technology (62%) and Healthcare (41%) are also giving skills the higher seat when weighing talent. However, recruiters in IT & technology say it's tough to find qualified candidates quickly (69%), while those in Healthcare struggle to find the right mix of technical and soft skills (68%). For Global Capability Centres (GCCs) in Hyderabad, balancing global company goals with local skill availability (83%) and limited training opportunities (60%) pose significant hurdles in hiring skilled talent locally. Abhishek Singh Kumar, Senior Director, Impetus, says, 'LinkedIn has been an invaluable asset in our talent acquisition strategy, enabling us to connect with both active job seekers and highly qualified professionals who may not be actively searching. The AI-powered candidate outreach ensures that our messaging is well-crafted and efficiently customized, enhancing our employer branding and positioning us effectively in front of potential candidates. With ongoing support from LinkedIn's dedicated account managers and subject matter experts, our recruiters have mastered the art of hiring through the platform. As a result, LinkedIn has helped us source exceptional talent swiftly, contributing significantly to our business growth." AI tools boost efficiency, help recruiters grow into strategic career advisors Recruiters are using AI to save time by automating manual tasks and enhancing productivity. As per the research, 67% of Hyderabad's recruiters are using AI-powered screening tools, and 72% are leveraging data analytics in decision making to speed up hiring. Across India, IT & technology companies are also using AI-powered screening tools (71%) and data analytics (74%) to hire faster. They are seeing measurable benefits: 54% recruiters in Hyderabad say AI increases efficiency, 51% say it improves skills-first outcomes, and 45% say that by taking repetitive tasks off their plate, it helps them focus on higher value activities such as stakeholder alignment and candidate experience. As AI adoption grows, 90% of recruiters in Hyderabad expect to step up as 'strategic career advisors' in their roles, and 94% plan to use personalised content and data insights to engage candidates more effectively. LinkedIn's AI-powered tools are built to help recruiters hire quality candidates faster, with higher response rates As recruiters face rising pressure to move faster without compromising on quality, LinkedIn's AI-powered tools are designed to deliver results that matter. ● Recruiter 2024, LinkedIn's first generative AI hiring experience, is already helping hirers connect with qualified candidates more effectively, with AI-assisted messages seeing 44% higher acceptance rates and being responded to 11% faster than standard outreach globally.