BPM firms expand as GCC demand surges; AI and hybrid models lead
NEW YORK, UNITED STATES — Global Capability Centers (GCCs) are becoming the next frontier for business process management (BPM) firms, with major players like Genpact, WNS, and Sutherland reporting surging demand.
GCCs are becoming innovation centers, and accordingly, BPMs are moving beyond conventional outsourcing toward AI-based transformation alliances, where they leverage the hybrid business model to unlock new opportunities.
GCCs emerge as key growth driver for BPM firms
Genpact is establishing a dedicated India GCC leadership team, while Sutherland reports a 25% to 30% annual increase in digital transformation inquiries from GCCs.
WNS has already implemented more than 25 GCC projects and anticipates further growth as businesses seek to optimize their operations within the economy.
This demonstrates an overall industry trend, as GCCs are no longer cost centers but centers of digital transformation strategies.
Recently, BPMs have shifted their focus to providing end-to-end services, positioning themselves as integral partners instead of mere vendors.
Hybrid models and AI adoption redefine collaboration
Despite concerns about insourcing, BPM executives emphasize a “coexistence model” where hybrid partnerships thrive.
WNS Chief Executive Officer (CEO) Keshav Murugesh highlights that GCCs provide cultural alignment with parent firms, while BPMs deliver ready talent, cost efficiency, and AI-powered tools. Genpact’s Riju Vashisht adds that investments in generative and agentic AI are critical as GCCs transition into innovation engines.
The rise of Build-Operate-Transfer (BOT) and “GCC-as-a-Service” models underscores this shift. Mid-market GCCs are increasingly turning to BPMs to meet their turnkey project needs, such as legal, tax, and infrastructure, due to a lack of local know-how, according to Nikhil Anand of Sutherland.
Such partnerships also create scalability and minimize the risks associated with labor inflation and regulatory barriers.
Margin pressures accelerate shift to high-value services
Traditional business process outsourcing (BPO) models are becoming unsustainable due to rising labor costs and forex volatility, says PwC’s Rajesh Ojha.
BPMs are responding by transitioning to high-margin services, such as financial planning & analysis (FP&A), analytics, and digital operations. This improves profitability and deepens client reliance on BPM expertise.
Regulatory changes, including data protection laws, are further driving demand for secure, IP-compliant GCC setups.
BPMs now act as “managed capability partners,” offering a range of services from AI-driven process automation to regulatory compliance—a far cry from their origins in back-office operations.
