India commands 60% of scaled banking workforce in GCCs, says report

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India now dominates the global capability and innovation hubs (CIH), or global capability centres (GCCs), accounting for 60 percent of the scaled banking workforce, according to a new report by Boston Consulting Group (BCG).

"The Philippines, Eastern Europe, and Latin America each account for five to 10 percent," BCG said in a report.

Financial institutions continue to advance their operations beyond traditional back-office roles to encompass high-end services like advanced analytics, software engineering, risk management, and regulatory reporting.

Historically, financial institutions have been early adopters of CIHs, using them as cost-effective centres for back-office operations starting in the early 2000s. Today, these hubs provide essential services that directly impact business strategy, requiring fewer, but more highly skilled employees.

While sectors like consumer goods and media have rapidly adapted, many FI hubs remain constrained by reactive practices, missing out on critical opportunities for growth and innovation. To address this gap, the report stresses that financial institutions must invest in scaling and modernising their CIHs to unlock their full potential.

Meanwhile, India has emerged as a key player in the global Artificial Intelligence (AI) picture, ranking second in the number of AI specialists and third in research publications, the BCG report revealed.

This highlights India’s growing dominance in utilising AI across sectors.

“If you take just any of the large Gen AI players, even a Microsoft… they themselves are projecting the use of Gen AI in tech to become almost 10x in the next five to six years. A lot of the license sale will come either from the large IT services players or the GCCs (Global Capability Centres),” Rajiv Gupta, who leads the telecommunications, media & technology practice at Boston Consulting Group in India, told Moneycontrol

GCCs in India are emerging as significant players in enterprise-level decision-making, particularly in AI-driven transformations.

Sreyssha George, Managing Director and Partner at BCG, told Moneycontrol about the increasing global influence of leadership roles within GCCs. "Today, around 15% of leadership in GCCs hold global roles, such as global technology heads, product heads, or heads of analytics for major companies," George said.

These roles allow Indian talent to directly influence enterprise-wide strategies, which is a major shift from traditional support functions to high-impact decision-making positions.

Also read: Indians occupy 10-13% leadership positions in GCCs

George attributed this trend to two key factors. First, the increasing depth of processes managed by GCCs provides visibility across entire workflows. This enables leaders to take ownership and drive innovations, resulting in better efficiency and decision-making.

Second, GCCs are becoming hubs for niche and nascent technologies such as Generative AI (GenAI).

While India has made significant strides, the report also reveals critical gaps that need to be addressed. Investments in research hubs, cloud capabilities, and data systems remain critical. Other important areas are AI education, especially in rural areas, and fostering public-private collaborations, the report shows.

Als0 read: Indian IT cos struggle with Gen AI rollout delays amid rising compute, cloud cost

Globally, only a small group of “AI Pioneers,” including the United States and China, have achieved high readiness for AI, driven by investments and better research and development ecosystems.

As India continues to develop its AI capabilities, aligning investments, regulations, and workforce training will be key to cementing its position as a global AI leader.