Global firms expand India cost centres as AI cuts outsourcing needs
Bengaluru: Global companies are bringing more work in-house at their India cost centres as AI boosts productivity and reduces reliance on outsourcing partners, executives said at a Reuters summit in Bengaluru.
The shift reflects a structural change in how multinationals use their India operations, moving beyond cost-focused support roles to centres that own core functions such as engineering, product development and analytics.
Executives at the summit noted that advances in artificial intelligence are enabling India-based teams to handle more complex, higher-value work with smaller teams. The productivity gains are prompting firms to consolidate work internally rather than contract it to third-party IT service providers.
Traditionally, global capability centres (GCCs) in India focused on back-office support, tech maintenance, and process-driven tasks to cut costs. With AI tools automating routine work, many centres are now taking direct ownership of product roadmaps, data science, and R&D mandates that were previously run out of headquarters or outsourced.
The trend signals a broader repositioning of India’s role in global operations. Instead of functioning primarily as low-cost delivery hubs, GCCs are increasingly becoming strategic centres for innovation and decision-making.
While outsourcing partners remain part of the ecosystem, the executives said the balance is shifting. Companies are prioritizing building internal capability in India, citing faster execution, better IP control, and the ability to scale AI-driven workflows.
The comments came during panel discussions at the Reuters event in Bengaluru, where leaders from technology, banking, and manufacturing sectors assessed the impact of AI on global operating models.
