Only 8 pc Of Global Capability Centres Achieve Top Performance Status, BCG Study

ENA Economy 2025-06-04 16:07:23 New Delhi, Jun 4 (KNN) A recent study by Boston Consulting Group has found that despite growing attention in the business world, only 8 percent of Global Capability Centres worldwide can be classified as mature top performers based on innovation, competitive differentiation, and operational efficiency metrics. The research, which surveyed 150 senior executives and GCC leaders across various industries and regions, indicates that while GCCs are expanding rapidly in scope and ambition, most remain concentrated on delivery execution rather than functioning as comprehensive capability hubs that drive enterprise-wide transformation. Global Capability Centres, also referred to as Global In-house Centres, are offshore units established by multinational corporations to handle diverse business functions including IT services, research and development, finance, analytics, customer service, and human resources operations. According to the BCG report titled Rewriting the Global Capability Center Playbook: Scaling Maturity with AI, 19 percent of surveyed GCCs were categorised as above average performers, while 65 percent fell into the average performers category and 8 percent were classified as under performers. The 8 percent top performer rate applies to India despite its substantial GCC presence, while Mexico, which has emerged as a significant GCC market due to its technology talent pool and proximity to the United States, accounts for 11 percent of top-performing GCCs globally. Sreyssha George, Managing Director and Partner, BCG, noted that artificial intelligence integration has created renewed momentum within the GCC ecosystem, enabling these centres to lead transformation initiatives rather than merely support them. She highlighted that over 90 percent of top-performing GCCs have established or expanded AI-led Centres of Excellence within the past 18 months, a pattern observed across different industries and geographical regions. The study's sectoral analysis reveals that technology, media, and telecommunications firms demonstrate the highest maturity levels, attributed to increased investment in AI initiatives and innovation depth. In contrast, the Banking, Financial Services, and Insurance sector, which employs the largest share of GCC workers, scores lower on innovation parameters and overall maturity levels. George explained that the BFSI sector's legacy infrastructure creates implementation challenges for innovation compared to retail or consumer goods sectors that are digitally native. When examining advanced AI applications such as Generative AI, Natural Language Processing, and AI agents, top performers have progressed beyond pilot programs to integrate AI throughout core workflows, while most GCCs remain in early-stage experimentation phases. Rajiv Gupta, Managing Director and Senior Partner, BCG, emphasised the performance gap, stating that over 90 percent of top-performing GCCs implement advanced AI use cases compared to approximately 50 percent of other centres. He warned that organisations not advancing risk entering an auto-pilot mode that could limit their competitive positioning. (KNN Bureau) 42327 https://knnindia.co.in/news/newsdetails/economy/only-8-pc-of-global-capability-centres-achieve-top-performance-status-bcg-study 2025-06-04 16:07:23 knnindia.co.in Only 8 pc Of Global Capability Centres Achieve Top Performance Status, BCG Study