Why Global Capability Centers (GCCs) Are the Smart Solution to Hiring Freezes

Why the Interest in GCCs Is Growing

Across industries, organizations are running into the same challenges: the need to scale operations, digitize processes, and improve service delivery—all while dealing with budget pressures, talent shortages, or hiring freezes. Internal teams are often at capacity, but the demands on performance keep rising.

This is where Global Capability Centers (GCCs) are starting to attract renewed interest. What was once considered a cost-driven extension of outsourcing is now evolving into a more focused approach to building long-term operational capacity. GCCs give companies a way to expand capabilities in a structured, stable, and scalable way—without relying entirely on traditional hiring models.

According to Everest Group, just a few years ago, less than 25% of GCCs were launched with the help of external providers. Today, that figure is closer to 50%. The shift suggests that more organizations are choosing to work with partners not just for short-term outsourcing needs, but as part of a broader approach to managing global operations.

What Are Global Capability Centers Today?

Global Capability Centers have come a long way from their early days. Initially set up to offload transactional processes, today’s GCCs are built to mirror the core functions of the business—sometimes even outperforming onshore teams in speed, focus, and delivery.

These centers don’t just support one function. Depending on the company’s needs, they may house finance operations, digital initiatives, revenue cycle teams, or data and analytics groups. Many even integrate functions like customer experience and innovation.

In short, they’re no longer just back-office engines. They’re tightly woven into how a business delivers value. In fact, leading BPM firms like Genpact and WNS are doubling down on this model, reimagining Global Capability Centers  (GCCs) as delivery hubs for high-skill, high-impact functions. You can see more on this shift in this piece from Outsource Accelerator.

Why More Companies Are Looking for GCC Alternatives

The appeal of the Global Capability Center (GCC) model is growing, in part, because many companies are stuck in a holding pattern. Maybe they want to expand—but can’t open up new headcount. Maybe they’ve paused hiring due to budget constraints, but the workload hasn’t paused with it. Or maybe they’re entering new markets where their in-house teams simply don’t have coverage.

In any case, the internal structure doesn’t always support the pace of business change. GCCs provide a controlled way to scale up while keeping costs, compliance, and delivery tightly managed.

We’ve seen companies face situations like:

• Holding off on full-time hiring due to internal budget reviews
• Needing to support a new function or service line without building a whole new team
• Wanting to consolidate backend processes but lacking the internal bandwidth to do it efficiently

This is the kind of environment where GCCs, especially those built around contractor models, start to make a lot of sense.

What Makes the Connext Model Different

Connext supports clients in building Global Capability Centers using flexible contractor-based models that don’t add to traditional headcount. This model lets clients scale quickly, test new setups, or run teams across time zones—without going through full hiring processes. We handle the setup, training, and support so internal teams can stay focused.

To learn how companies are setting up global teams without increasing headcount, explore our blog: Captive Offshoring: A Strategic Approach.

GCCs Aren’t Just About Saving on Labor

There’s still a perception that GCCs are primarily a cost play. And yes, they can absolutely reduce overhead. But the real reason companies invest in them—especially now—is capability.

Today’s global capability centers focus on supporting key business needs in a more flexible way. They help organizations tap into specialized roles, manage important functions across locations, and keep operations steady—even during periods of change. For many, GCCs also offer a way to explore new services or processes without making long-term commitments.

This kind of model works especially well for companies navigating growth, transformation, or complex multi-site operations.

BPM Firms Are Leading This Evolution

This shift to smarter, more strategic GCCs isn’t isolated. BPM players across the board are leaning into it. As reported by Outsource Accelerator, firms are focusing their GCCs on high-value work: AI, digital transformation, and FP&A. That tells us something about where the model is headed.

It’s also consistent with what we’re seeing on the ground. Companies aren’t just looking for offshore “support.” They want extension teams. They want infrastructure. They want fast setup, clear accountability, and partners who understand local regulations and global workflows.

That’s where flexible, contractor-based models come in.

How We Support GCCs, End to End

Connext helps companies set up and manage Global Capability Centers in a flexible way. We support each stage—building the team, running daily operations, and scaling up or down as needed. Our model includes help with hiring, onboarding, compliance, and backend setup, so clients can stay focused on their goals without growing internal headcount.

Discover how our flexible service model supports every stage of your global team setup: Explore the Connext approach.

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