Why PE-Backed Mid-Market Companies Are Investing in Global Capability Center Services in 2026
The traditional approach to offshore expansion is no longer enough. Businesses today are looking beyond cost savings and focusing on innovation, scalability, and long-term value creation. This is where Global Capability Centers (GCCs) and GCC consulting services are becoming a major competitive advantage.
Many CFOs and business leaders are under pressure to improve margins, manage rising talent costs, and accelerate digital transformation initiatives. At the same time, private equity firms continue to push portfolio companies to improve operational performance and increase enterprise value.
For many mid-market companies in 2026, India has become the preferred destination for building Global Capability Centers.
However, modern GCCs are very different from the offshore delivery centers of the past. Earlier models focused mainly on cost arbitrage and repetitive back-office operations. Today’s GCCs support product engineering, AI development, data analytics, cybersecurity, cloud operations, and digital transformation initiatives. Companies are using GCCs to build specialized capabilities and compete with much larger enterprises.
What Is a Global Capability Center?
A Global Capability Center is a wholly owned offshore center created by a company to manage technology, operations, research, engineering, or business functions from a global location. Unlike outsourcing, a GCC operates as an extension of the company itself. The business retains ownership of its people, intellectual property, processes, and culture.
India has become one of the largest GCC hubs in the world, with more than 1,700 GCCs employing nearly two million professionals. Several key trends are driving this growth.
Strong AI Talent Availability
India has one of the fastest-growing AI talent pools globally. Companies building AI-driven products and digital platforms are increasingly choosing India because of the availability of skilled engineers, data scientists, and cloud professionals.
Growth of Mid-Market GCCs
Earlier, GCCs were mainly built by large enterprises. Today, mid-sized businesses are also adopting this model. Mid-market companies now represent a significant share of GCC expansion in India, with many new centers expected to launch over the next few years.
Private Equity Investment
Private equity firms are actively supporting GCC adoption across their portfolio companies. GCCs help improve operational efficiency, reduce costs, and support scalable growth, all of which can positively impact EBITDA and exit valuations.
Why Private Equity Firms Are Investing in GCCs
Private equity firms now view GCCs as a strategic growth lever rather than only a cost-saving initiative.
The financial benefits are substantial. Roles that cost significantly more in the US or Europe can often be delivered from India at a much lower cost while maintaining strong quality standards. This allows portfolio companies to improve profitability and redirect savings toward innovation and expansion.
In addition to cost reduction, PE firms are using GCCs to achieve several business goals:
Centralizing operational functions
Accelerating digital transformation
Building AI and automation capabilities
Improving scalability
Creating stronger operating models for future exits
Many PE-backed companies are also using GCCs to access specialized technology talent that may be difficult to hire locally.
The Rise of the Build-Operate-Transfer (BOT) Model
One of the biggest changes in the GCC ecosystem is the growing adoption of the Build-Operate-Transfer model.
Many mid-market businesses lack experience in setting up and managing offshore centers independently. The BOT model helps reduce this complexity by allowing a GCC consulting partner to manage the initial stages of setup and operations.
Build Phase
During this stage, the consulting partner handles:
Legal entity setup
Office infrastructure
Compliance requirements
Recruitment
Technology systems
Location planning
This allows businesses to launch operations much faster.
Operate Phase
The partner manages daily operations, governance, hiring, compliance, and performance management while the client gradually becomes more involved.
Transfer Phase
Once the GCC reaches operational maturity, ownership and management responsibilities are fully transferred to the client organization.
This model is especially useful for private equity firms because it aligns well with typical investment timelines and reduces execution risk.
What Businesses Should Look for in a GCC Consulting Partner
Selecting the right GCC consulting services provider is critical for long-term success.
Strong Hiring Capabilities
Recruitment is one of the most important factors in GCC success. Companies should evaluate the partner’s ability to source qualified talent quickly across specialized domains.
AI and Digital Readiness
Modern GCCs should be built with AI, automation, cloud, and DevOps capabilities from the beginning. This helps businesses accelerate innovation and improve productivity early in the setup process.
Flexible Infrastructure
Partners with ready-to-use office infrastructure across major Indian cities can significantly reduce setup time.
Compliance Expertise
A reliable GCC consulting partner should provide support for labor laws, taxation, data protection regulations, and security compliance from day one.
Industry Experience
Industry-specific expertise is valuable because it reduces onboarding time and improves operational efficiency. A BFSI company, healthcare provider, or SaaS business may each require different domain capabilities.
Common Mistakes Companies Make During GCC Setup
Many GCC challenges happen because of poor execution rather than strategy.
Hiring the Wrong Leadership
The GCC leader plays a major role in the center’s long-term success. Businesses should treat this as a strategic leadership hire rather than a routine management position.
Poor Scope Planning
Companies sometimes begin operations without clearly defining which functions the GCC will manage. Clear planning helps avoid delays and operational confusion later.
Ignoring Employee Retention
High attrition can impact stability and productivity. Businesses should invest in employee growth, culture, learning programs, and leadership engagement to improve retention.
Delaying Compliance Planning
Regulatory and compliance requirements should be addressed early to avoid operational risks later.
Key Business Benefits of GCCs
Businesses adopting GCCs are seeing measurable advantages, including:
Lower labor and operational costs
Faster product development cycles
Improved access to technology talent
Better scalability
Stronger AI and digital transformation capabilities
Faster operational setup through BOT models
Companies that establish mature GCCs early are also gaining a long-term competitive advantage in talent acquisition and innovation.
Questions to Ask a GCC Consulting Services Provider
Before selecting a GCC partner, businesses should ask:
What is the average setup timeline?
How quickly can the partner provide qualified candidate shortlists?
What percentage of projects are delivered on time and within budget?
How is compliance managed?
Are AI and automation capabilities included in the setup?
How does the transfer phase work?
Conclusion
Global Capability Centers are no longer limited to large enterprises. Mid-market companies and PE-backed businesses are increasingly using GCCs to improve operational efficiency, build digital capabilities, and accelerate growth.
The Build-Operate-Transfer model has made GCC adoption more practical and accessible for businesses that previously lacked the resources or expertise to establish offshore operations independently.
India continues to offer deep technology talent, strong AI capabilities, and scalable infrastructure, making it one of the most attractive locations for GCC expansion.
In 2026, the key question for businesses is no longer whether they should build a GCC. The focus is now on how quickly they can launch and which GCC consulting partner can help them create long-term strategic value.