March 20, 2025

Ron Finklestien

Enterprises Strengthen AI and Data Analytics Competencies in Global Capability Centers, According to ISG Study


Enterprises Plan to Leverage AI in Global Capability Centers

New ISG research finds organizations plan to leverage AI, upskill staffing to achieve greater innovation, value from their GCCs

According to a new survey by Information Services Group (ISG) III, a majority of enterprises intend to utilize artificial intelligence (AI) within their global capability centers (GCCs) to engage in higher-value projects.

The ISG Market Lens™ 2025 Global Capability Centers Study reveals a significant shift in GCC staffing. Organizations are moving away from traditional labor arbitrage towards employing higher-skilled workers. These skilled roles focus more on AI and data analytics rather than manual and administrative tasks that can be automated. While overall staffing levels may not change drastically, the necessary skill mix is evolving.

Alex Bakker, a distinguished analyst at ISG and co-author of the study, noted, “The adoption of generative AI and the growing interest in GCCs represent the two largest trends within the IT and business services sectors in recent years. Organizations are investing in GCCs to minimize costs and secure skilled talent for driving innovation. AI facilitates the automation of both complex and straightforward tasks, enhancing output and ROI from their GCCs.”

Skills Development in GCCs

In the survey, 39% of respondents anticipated an increase in AI and machine learning expertise within their GCCs. Furthermore, 23% noted a demand for data science and analytics skills, while 15% sought expertise in cloud and IT infrastructure. Conversely, there were expectations for reductions in manual tasks (22%), business process support (19%), and project management and administration (15%) roles.

Even GCCs with modest AI investments are poised to scale their AI capabilities in the next two years, which may lead to reductions in headcount in other areas.

Investment Trends and Challenges

Over the next two years, 50% of businesses plan to broaden their GCC services. They are ramping up investments in AI to achieve an anticipated 10% increase in work throughput. The average investment for 2025 is estimated at around $1 million, with approximately 20% of GCCs investing $5 million or more. Currently, these investments primarily focus on AI pilot projects and preparing data for AI implementation.

Respondents identified data quality as the top barrier (41%) to implementing generative AI in their GCCs. Other challenges include demonstrating return on investment (36%), business integration hurdles (36%), managing organizational changes (34%), and ensuring talent availability (32%).

Future of AI in Global Capability Centers

Michael Dornan, principal analyst and study co-author, stated, “As AI adoption advances, organizations understand that AI tools designed around specific business information have a more significant effect than generic solutions. For GCCs to unlock AI’s value and drive high-risk/high-return innovations, they need to improve their data quality and the processes supporting it.”

The ISG study surveyed 200 executives from G2000 enterprises across the Americas and Europe in February 2025. These decision-makers hold responsibility for their organization’s IT expenditures.

About ISG

ISG III is a leading global technology research and advisory firm focused on AI. Serving more than 900 clients, including 75 of the top 100 enterprises worldwide, ISG is recognized for its deep market insight, proprietary data, and the expertise of its 1,600 professionals. Founded in 2006, the firm helps organizations enhance their operational efficiency and accelerate growth through AI utilization.

Press Contacts:
Will Thoretz, ISG
+1 203 517 3119
[email protected]

Julianna Sheridan, Matter Communications for ISG
+1 978 518 4520
[email protected]

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