Global Capability Center Management

20 Years Ago, Intuit Bet on Global Talent—Here’s What Happened In April 2004, I helped launch Intuit’s Global Capability Center (GCC) in India. Skeptics called it a “cost-cutting move.” Today, the data tells a different story— one about innovation velocity, profitability, and category leadership. By the Numbers ▸ Revenue: $2.1B (2004) → $16.3B (2024) | 676% growth ▸ Stock Performance: 356% over S&P 500 ▸ Market Cap: $7B → $185B | Outpaced Adobe, Salesforce, and H&R Block ▸ AI Leadership: 80% of TurboTax/QuickBooks AI built via global teams The GCC Evolution * Phase 1 (2004–2012): Cut costs 32%, freed up $1.4B for R&D * Phase 2 (2013–2020): Scaled AI/ML—60% of features from global hubs * Phase 3 (2021–2024): Won GenAI race; 73% of SMB tasks now automated The Real Lesson Global teams aren’t just about labor arbitrage. They’re force multipliers when you: * Invest in cultural integration (Intuit rotated 500+ leaders across hubs) * Empower ownership (India GCC filed and earned several patents) * Build 24-hour innovation cycles (Mountain View ←→ Bengaluru handoffs) Peer Contrast Companies clinging to domestic-only talent: ▸ H&R Block: 4-year lag replicating Intuit’s AI features ▸ TaxAct: -2% revenue growth vs. Intuit's 13% CAGR

The Evolution of Global Capability Centers (GCCs): From Cost Centers to Innovation Hubs Having had a front-row seat for over 25 years analyzing global enterprise strategies, I've witnessed a transformative journey for Global Capability Centers (GCCs). What began as a tactical play for cost arbitrage has become a strategic imperative for innovation, redefining enterprise operating models. From 1990–2005, GCCs were largely cost centers. The mandate was clear: cut operational expenditure by 20–40% through labor arbitrage and process standardization. Their role was to execute transactional tasks efficiently, often in back-office functions like finance & accounting (F&A) or IT support. The model was “lift and shift”—replicating processes offshore at lower costs. Between 2005–2015, GCCs matured, moving beyond basic execution to end-to-end functions. Shared service centers expanded their scope, contributing 10–15% efficiency gains through process re-engineering. "Centers of excellence" emerged, focusing on domains like supply chain or HR services. From 2015 onwards, GCCs have firmly positioned themselves as innovation hubs, driving growth and competitive differentiation. Our research at Tholons indicates: *Over 60% of new GCCs are now set up with mandates for innovation, R&D, and digital transformation—not just cost savings—marking a major strategic shift. *Many are leading in developing cutting-edge tech, contributing 30–50% to AI/ML, automation, and cloud migration efforts—becoming accelerators for digital agendas. *GCCs now incubate products and services, leveraging local talent to build for global markets. They contribute 15–25% of new product features or service enhancements. *They influence strategic planning—providing real-time analytics, intelligence, and tech expertise—and contribute to 10% of global business decisions. *The talent pool has diversified from generalists to specialists in cybersecurity, data science, UX/UI, and domain knowledge. Salaries in specialized roles are growing 8–12% annually, reflecting their rising value. Ankita Vashistha Frank Pendle Aparna Thakur Kamlesh Morarji Gustavo Tasner Raja Seetharaman #GCCs #Innovation #DigitalTransformation #Tholons #EnterpriseTransformation #AI #Automation

Building Competency in #GCCs: From Execution to Enterprise Impact As enterprises embrace an AI-first future, Global Capability Centers (#GCC) must transition from being delivery engines to becoming strategic innovation hubs. This shift demands a new blueprint for building talent—not around roles, but around real capability. Here is a five-step framework to build enduring competency within GCCs: 1. Create Capability Tracks, Not Just Career Tracks - Empower talent to build cross-functional expertise and domain depth, beyond traditional hierarchical progression. 2. Invest in “Train-to-Own” Programs - Go beyond upskilling. Equip teams to take end-to-end ownership of platforms, products, and outcomes. 3. Co-Create IP with Business Units - Integrate delivery and business. True value creation begins when IP is co-owned across functions. 4. Build Visible Centers of Excellence (CoEs) - Institutionalize expertise. Make Centers of Excellence drivers of innovation, reuse, and measurable impact. 5. Tie Competency KPIs to Business Outcomes - Redefine success. Measure value in terms of innovation delivered, time-to-market accelerated, and enterprise impact created. This is not a #talentstrategy—it is a business strategy. The GCCs that lead will not just optimize operations. They will shape enterprise direction, drive AI-native growth, and unlock strategic advantage. Is your GCC building for output—or for lasting enterprise capability? #GlobalCapabilityCenters #GCCLeadership #TalentTransformation #DigitalInnovation #AICompetency #EnterpriseStrategy #GauravAgarwaal #BusinessImpact #LeadershipInTech

Still think GCCs are just about cost savings? Think again. India’s GCC ecosystem alone houses nearly 50 % of all US‑headquartered GCCs and over 1,700 centres employing 1.9 million professionals. These hubs aren’t back‑office support; they’re driving product innovation and R&D at scale—Pure Storage’s Bengaluru team builds key global product features. With revenue growing at a 9.8 % CAGR, GCCs have evolved from cost centres into true value‑creation engines. As leaders, we must rethink offshore strategy: it’s about tapping deep tech talent, accelerating digital transformation and building resilience—not just cutting costs. 🚀💡 How is your leadership team leveraging GCCs—as a support function or as a strategic advantage? Let’s discuss. #GlobalCapabilityCenter #BusinessTransformation #COOInsights #FutureOfWork #SATechnologies

As digital transformation accelerates and global enterprises face unprecedented volatility—from supply chain disruptions to AI-driven innovation—the strategic importance of Global Capability Centers (GCCs) has reached a tipping point. What began as offshore cost-saving hubs has now evolved into centers of excellence for innovation, analytics, and enterprise-wide capability building. With over 1,750 GCCs already operating in India and projections pointing to 2,200 centers by 2030, the momentum is undeniable. India’s unique blend of a tech-rich ecosystem, a deep STEM talent pool, and a culture of innovation positions it as the global nucleus for digital, data, and deep-tech operations. From AI/ML and cloud engineering to global branding and product development, GCCs are no longer support functions—they are strategic assets. As a CEO enabling GCC transformations, I see firsthand how organizations are leveraging these centers not just to optimize cost, but to gain control, agility, and innovation at scale. The urgency is real. The opportunity is now.  Let’s build the future of enterprise, together. #GCC #DigitalTransformation #Innovation #IndiaTech #EnterpriseResilience #Leadership #FutureOfWork #GlobalStrategy