Infosys Launches AI-First Model: Modernizing Global Capability Centers

The fluorescent hum of a Global Capability Center (GCC) office, typically a beehive of operational efficiency, once felt predictable.

Teams worked diligently, executing global mandates, but the spark of genuine innovation often seemed to reside elsewhere, perhaps in headquarters or agile startups.

I recall a conversation with a seasoned GCC manager, Sunita, whose eyes held the weariness of constant pressure to do more with less.

Her team was brilliant, but felt like cogs in a well-oiled machine, not architects of its future.

She spoke of the struggle to attract top-tier talent who yearned for impactful, creative work, and the frustration of legacy systems that resisted true transformation.

It was a common refrain: GCCs, while indispensable, often felt like cost centers rather than true strategic partners.

This scenario, common across many enterprises, highlights a critical challenge: how do you transform these engines of execution into dynamic hubs of innovation, especially in an era defined by the exponential power of AI?

In short: Infosys has launched its AI-first Global Capability Centre (GCC) model to transform captive centers into AI-powered innovation hubs.

This specialized offering embeds production-grade agentic AI across GCC operations, providing comprehensive support from setup to scale, enhancing enterprise agility and competitive advantage.

Why This Matters Now:

The traditional perception of Global Capability Centers (GCCs) as mere cost-arbitrage centers is rapidly becoming obsolete.

In todays digital landscape, exacerbated by the relentless pace of technological change and heightened global competition, enterprises demand more.

They need their GCCs to be strategic assets, driving genuine innovation and competitive advantage.

This is where AI, particularly the sophisticated capabilities of agentic AI, steps in as a game-changer.

Infosys, a global leader in next-generation digital services and consulting, recognizes this imperative.

As a major Information Technology company, Infosys introduced its new AI-first Global Capability Centre model on November 20, 2023, aimed at helping enterprises set up and transform their captive centers into technology and innovation hubs (Infosys, 2023).

This move is crucial because it addresses the core challenge businesses face: how to scale and transform their GCCs to not just execute, but to invent and lead in an AI-first world.

Infosys chairman Nandan Nilekani articulated this evolving role, stating that GCCs are no longer competitors but have evolved into critical clients (Nilekani, Infosys, 2023).

The Transformation Imperative: From Cost Center to Innovation Hub

For decades, GCCs have served as vital operational extensions for multinational corporations.

They handle critical functions from IT support to finance processing, delivering efficiency and cost savings.

However, the demands of the modern enterprise have surpassed this foundational role.

Today, a GCC must be more than an efficient back-office; it must be a front-line innovator.

This strategic evolution means GCCs need to be agile, responsive, and equipped with cutting-edge capabilities to contribute directly to business growth and digital transformation.

They are no longer just about execution; they are about co-creation and foresight.

The counterintuitive insight is that the very efficiency that made traditional GCCs valuable can also become a barrier.

Without a deliberate shift towards an AI-first strategy, these captive centers risk becoming bottlenecks rather than accelerators for enterprise modernization.

Mini Case: Bridging the Talent and Tech Gap

Consider a large manufacturing firm, GlobalTech, whose GCC in Bengaluru was highly efficient at routine IT operations but struggled to attract talent for advanced AI projects.

They recognized the need to embed AI across business functions, from predictive maintenance to supply chain optimization.

However, their existing infrastructure and skill sets were not equipped for production-grade agentic AI.

The leadership saw a potential gap: how could they transform their GCC into an AI innovation hub that could both scale operations and attract top-tier AI talent?

The solution required a holistic approach, not just adding new tools, but rethinking their entire operational framework and talent strategy.

This is the precise challenge that Infosys new AI-first GCC model aims to solve.

Infosys AI-First GCC Model: A Blueprint for Modernization

Infosys new AI-first GCC model is designed to bridge this strategic gap, transforming traditional GCCs into vibrant AI innovation hubs.

The model is comprehensive, providing an end-to-end path from initial setup support to scalable talent strategies and operational readiness, all while enabling AI-led transformation with production-grade agents and a unified platform (Infosys, 2023).

This holistic approach is crucial, as true technology transformation requires more than just bolting on new technology; it demands a fundamental rethinking of people, processes, and platforms within the enterprise.

What the Research Really Says: The AI-Driven IT Revolution

Infosys new AI-first GCC model provides a clear blueprint for leaders navigating complex technology transformation.

The offering is designed specifically to help enterprises modernize captive centers into technology and innovation hubs, enabling them to embed AI across business functions, scale operations, and enhance their GCCs strategic value (Infosys, 2023).

This fundamental shift moves GCCs beyond their traditional operational roles, positioning them as strategic assets critical for future growth.

The technological foundation of this offering is robust.

It is built on Infosys agentic AI stack, which includes Infosys Agentic Foundry, EdgeVerve AI Next, and Infosys Topaz (Infosys, 2023).

This indicates a comprehensive suite for building, deploying, and managing advanced AI, ensuring production-grade AI capabilities are seamlessly integrated across GCC operations.

Infosys brings extensive experience to this initiative, having a proven track record of more than 100 previous engagements with local GCC units across various industries (Infosys, 2023).

This background underscores their deep understanding of the unique challenges and opportunities within global sourcing and enterprise architecture, lending credibility to their new AI-first model.

The strategic vision for GCCs is also evolving.

As articulated by Infosys chairman Nandan Nilekani, GCCs are no longer seen as competitors but as critical clients (Nilekani, Infosys, 2023).

This perspective highlights the strategic imperative for these centers to evolve, demanding advanced IT services and solutions that drive innovation and competitive advantage rather than just cost savings.

Client Success: Lufthansa Systems and Danske Bank Embrace AI-First GCCs

The effectiveness of Infosys AI-first GCC model is best illustrated through its client engagements.

Infosys has a proven track-record of over 100 engagements with local GCC entities globally (Infosys, 2023), and the adoption of this new AI-first approach is already yielding significant results.

Infosys has helped set up and operate centers for prominent enterprises, including Lufthansa Systems, zooplus, and Danske Bank (Infosys, 2023).

These partnerships demonstrate the models versatility and impact across diverse industries.

For instance, Frans Woelders, COO of Danske Bank, highlighted how two years into their collaboration with Infosys, their Global Capability Center has become core to their AI-first vision.

He noted the integration of AI into their software delivery lifecycle through tools like GitHub Copilot, the development of reusable GenAI platforms, and the deployment of multiple GenAI use cases across customer service, compliance, risk, and operations (Woelders, Danske Bank, 2023).

This journey reflects their commitment to creating differentiated experiences by building a truly AI-first bank.

Similarly, Stefanie Neumann, CEO of Lufthansa Systems, stated that their collaboration with Infosys to establish a dedicated Global Capability Center has been a pivotal step in their digital transformation.

She emphasized building a future-ready innovation hub to enhance aviation safety, drive operational efficiency, and improve customer experience, accelerating their vision for sustainable and intelligent aviation (Neumann, Lufthansa Systems, 2023).

Strategic Steps for AI-First GCC Transformation

Navigating the AI revolution requires proactive strategy and a deep connection to your customer base.

Here is a playbook for sustaining relevance and growth, informed by the Infosys approach:

• Prioritize AI and Digital Transformation: Recognize that AI is a central force in competitive strategy and treat your GCC as a strategic partner, not just a support function.

  This aligns with the understanding that GCCs are evolving into critical clients for advanced IT services.

• Reimagine Software Development: Embrace AI-augmented developer workflows.

  Experiment with generative AI tools to automate code generation, test case creation, and requirements analysis.

  The goal is to accelerate the software development lifecycle, enhancing developer productivity and output quality.

• Foster Continuous Learning and Experimentation: Implement internal programs to encourage curiosity, innovation management, and knowledge sharing.

  Create safe spaces for employees to experiment with new technologies and ideas, prioritizing business outcomes over rigid adherence to old methods.

• Cultivate IT-Business Integration: Break down silos by creating cross-functional agile teams where product owners, business analysts, and engineers collaborate directly.

  This deep integration of technical and business expertise is crucial for developing and scaling AI use cases.

• Emphasize Change Management: Recognize that AI introduces new ways of working.

  Dedicate significant resources to training, support, and cultural adaptation to help teams integrate AI tools effectively into their day-to-day operations.

• Strategically Manage Technology Transformation: Leverage an advanced agentic AI stack, such as Infosys Agentic Foundry, EdgeVerve AI Next, and Infosys Topaz, to build and deploy production-grade AI across your GCC.

  This ensures robust technological support for embedding AI across business functions.

• Partner with Proven Experts: Collaborate with firms like Infosys that have a track record of over 100 GCC engagements.

  This partnership can provide the speed, scale, and strategic depth essential for the next wave of enterprise transformation (Infosys, 2023).

Navigating the Roadblocks: Challenges and Mitigations

While the promise of an AI-first GCC is immense, its implementation comes with significant risks and trade-offs.

One common challenge is resistance to change from employees accustomed to traditional workflows.

Integrating new AI tools and processes requires not just technical prowess but also strong leadership to champion a shift in organizational culture.

Mitigation involves transparent communication about the benefits of AI, robust training programs for skill development, and involving employees in the transformation process to foster ownership.

Another potential pitfall is the complexity of integrating diverse AI components into existing enterprise architecture.

This can lead to technical debt if not managed carefully.

The trade-off is often between rapid deployment and ensuring long-term system stability and maintainability.

Mitigation requires a modular approach to technology implementation, prioritizing interoperability, and establishing clear governance frameworks for AI deployment.

Ethically, the deployment of agentic AI across business functions raises questions about data privacy, security, and bias.

As AI takes on more autonomous roles, ensuring ethical AI practices and maintaining human oversight becomes paramount.

The mitigation here involves designing robust audit trails, establishing clear ethical guidelines for AI development and deployment, and continuously monitoring AI systems for unintended biases or outcomes.

Measuring Success in Your AI-First GCC

To effectively navigate the AI landscape, a robust operational framework for measuring success is essential.

While specific tools vary by organization, a foundational set includes Customer Relationship Management (CRM) systems for deep customer insight, specialized Market Research Platforms, Social Listening Tools for real-time sentiment and trend monitoring, and Competitive Intelligence Software to track rival innovations.

For Key Performance Indicators (KPIs), focus on metrics that reflect agility, efficiency, and value creation in an AI-driven environment.

These categories include:

• Developer Productivity: Measuring the output and efficiency of AI-augmented workflows, perhaps through code generation speed or defect reduction rates.
• Innovation Rate: Tracking the number of new AI-driven solutions deployed or patents filed from the GCC.
• Operational Efficiency Gains: Quantifying improvements in process automation percentages, reduction in manual effort, or faster time-to-market for new features.
• IT-Business Alignment Score: Gauging the effectiveness of cross-functional collaboration and the degree to which GCC initiatives directly support strategic business objectives.
• Talent Readiness: Tracking employee engagement in AI upskilling programs and the percentage of workforce fluent in AI-first methodologies.

A well-defined Strategic Cadence ensures continuous adaptation.

Weekly, monitor real-time AI tool usage, system performance, and emerging tech news.

Monthly, review AI pilot results, project progress, and internal feedback loops on new workflows.

Quarterly, conduct comprehensive reviews of AI strategy, competitive landscape shifts, and portfolio priorities, adjusting plans as needed.

This practice of frequent re-evaluation is crucial for maintaining agility in a dynamic technological landscape.

Annually, re-evaluate long-term AI vision, talent alignment, and governance frameworks, integrating lessons from iterative progress and global sourcing trends.

FAQ

• What is the new Infosys AI-first GCC model?

  The new Infosys AI-first GCC model aims to help enterprises set up and transform their captive Global Capability Centers into technology and innovation hubs, embedding AI across business functions (Infosys, 2023).

• What technologies does the Infosys AI-first GCC model leverage?

  The model is built on Infosys agentic AI stack, which includes Infosys Agentic Foundry, EdgeVerve AI Next, and Infosys Topaz (Infosys, 2023).

• Has Infosys worked with other GCCs before?

  Yes, Infosys has a proven track record, having worked with more than 100 local GCC units across various industries, including setting up and operating centers for Lufthansa Systems, zooplus, and Danske Bank (Infosys, 2023).

• What is Infosys chairman Nandan Nilekanis view on GCCs?

  According to Infosys chairman Nandan Nilekani, GCCs are no longer competitors but have evolved into critical clients for companies like Infosys (Nilekani, Infosys, 2023).

Conclusion: Accelerating Innovation in the AI Era

Sunita, the GCC manager, once dreamt of a future where her team wasnt just maintaining systems, but actively shaping them, driving new value for the business.

With the Infosys AI-first GCC model, that future is now a tangible reality for many enterprises.

This is more than a technological upgrade; its a fundamental reimagining of how global capabilities contribute to innovation and growth.

By unifying cutting-edge technology platforms like Infosys Agentic Foundry, EdgeVerve AI Next, and Infosys Topaz, with robust talent development and flexible operating models, Infosys is enabling organizations to unlock the full potential of their GCCs.

The success stories from leading enterprises serve as compelling evidence that AI-first GCCs are not just a concept, but a powerful engine for next-gen enterprise transformation.

It is about moving from execution to pure innovation, turning every global capability center into a vibrant hub where AI amplifies human potential, creating the next opportunity for businesses and communities alike.

References:

• Infosys, Infosys launches AI-first model to help enterprises modernise GCCs, 2023.