BFSI GCCs shift from back office to innovation hubs, experts highlight AI-led transformation

India’s Banking, Financial Services and Insurance (BFSI) Global Capability Centers are entering their most rapid expansion phase yet, with their combined market value expected to surge from $40–41 billion in 2023 to nearly $125 billion by 2032, according to new estimates from Quess Corp. This growth is being powered by sweeping digital transformation across global financial institutions, accelerated adoption of artificial intelligence, and heightened focus on cybersecurity and risk-management capabilities.

India currently hosts around 190 BFSI-focused GCCs, employing nearly 540,000 professionals—almost a quarter of the country’s entire GCC workforce. While major metros continue to dominate with 88% of activity, hiring is steadily decentralising. Job postings in Tier-2 cities have risen 42% over the past year, marking a clear shift in expansion strategies and talent sourcing.

AI, data engineering and analytics roles are now central to BFSI GCC hiring, accounting for 29% of new mandates. However, the boom has also exposed a sharp talent shortage: demand for specialised digital skills exceeds supply by 42%, pushing companies into intense competition for qualified professionals and driving compensation levels higher.

Industry leaders say the sector’s evolution goes far beyond cost arbitrage. Kalyan Kolachala, MD, SAIGroup, notes that post-pandemic, BFSI GCCs have shifted from back-office functions to engines of innovation, automation and customer experience. With India’s deep expertise in AI, cybersecurity and risk management, he says global banks now see the country as “the most suitable location for high-value financial services.” He highlights generative and agentic AI as major catalysts for workflow automation in areas like underwriting, tax computation and mortgage processing.

Karthikeyan VS, Director & Head of Asia at Expleo, says BFSI GCCs have matured into strategic “nerve centres” leading global digital programmes from India. The ecosystem, he observes, is driving advancements in cybersecurity, AI-led risk management, blockchain-based compliance and personalised banking experiences. With fintech partnerships and cloud adoption rising, GCCs are moving from support roles to leadership roles in product development and digital transformation.

Ritesh Sharma, President of SA Technologies, describes the shift as the entry into “GCC 2.0”—a phase defined by ownership, innovation and cross-functional collaboration. More than 180 BFSI GCCs, employing around 400,000 people, are now building next-generation AI-driven platforms, compliance engines and resilience frameworks. He notes that “over 50% of BFSI GCCs have already initiated enterprise-wide digital initiatives,” signalling a transformation from efficiency-focused centres to strategic value creators.

With cost savings reaching up to 70%, deep AI talent and strong regulatory architecture, India’s BFSI GCCs are no longer back-end hubs—they are emerging as global command centres shaping the future of digital finance.