Capability Center Services Market Set to Surpass USD 403.22 Billion by 2032 as Global Enterprises Accelerate Digital, Cloud, AI & GBS Transformation | According to DataM Intelligence

AUSTIN, Texas and TOKYO, Nov. 20, 2025 /PRNewswire/ -- According to DataM Intelligence, the Capability Center Services Market Size was USD 172.34 billion in 2024 and is forecast to reach USD 403.22 billion by 2032, expanding at a strong CAGR of 11.21% between 2025 and 2032. The market is experiencing an unprecedented surge driven by rapid enterprise digitalization, AI-native business transformation, demand for cost optimization, and the transition toward global capability centers (GCCs), hybrid centers, and advanced shared-services models.

Over the last decade, capability centers-also known as GCCs, GBS centers, COEs (Centers of Excellence), and offshore innovation hubs-have evolved from low-cost delivery units to strategic value-creation engines. Today, GCCs drive cloud modernization, cybersecurity, automation, AI engineering, advanced analytics, product development, R&D, customer operations, and enterprise-wide digital initiatives for Fortune 500 and large multinational enterprises.

The rise of GenAI, hyperautomation, distributed cloud architectures, hybrid work models, and vertical digital services is shaping the next era of capability center services across India, Philippines, Poland, Mexico, UAE, Vietnam, Malaysia, Portugal, and Latin America.

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Market Overview: GCCs Shift from Cost Arbitrage to Strategic Digital Value Engines

• Global enterprise digital transformation investments surpassing USD 3.4 trillion by 2030
• Acceleration of AI adoption, with more than 60% of GCCs building AI/ML and automation COEs
• Cloud-first modernization, with enterprises reducing on-prem workloads by 50–70%
• Cost optimization, driving consolidation of global functions into unified capability centers
• Talent realignment, with GCCs becoming key hubs for engineering, R&D, cybersecurity, DevSecOps, DataOps, and domain-led innovation
• Increasing preference for captive and hybrid GBS models among U.S., European, and APAC enterprises
• Industry-specific capability maturity, especially in BFSI, healthcare, retail, telecom, and manufacturing

Market Segmentation Analysis

By Service Type (IT Services, BPM, KPO, Engineering & R&D, Finance & Accounting, HR Services, Others)

In 2024, Information Technology (IT) Services dominated the capability center landscape, capturing nearly 46% of the global market, equivalent to USD 79.25 billion. This segment includes cloud migration, application modernization, cybersecurity, infrastructure services, enterprise platforms, and AI/data engineering-areas where GCCs have become global leaders. The shift toward hybrid cloud, SRE (Site Reliability Engineering), DevSecOps, and AI-native operations continues to strengthen this category.

Business Process Management (BPM) Services accounted for 22% (USD 37.9 billion), driven by enterprise demand for digitized customer operations, omnichannel CX, claims processing, KYC, underwriting, policy servicing, and supply chain automation.

Knowledge Process Outsourcing (KPO) Services held 12% (USD 20.7 billion), supported by analytics COEs, actuarial modeling, clinical research support, regulatory intelligence, pricing analytics, market research, and F&A insights functions.

Engineering & R&D Services represented 10% (USD 17.2 billion), driven by automotive, industrials, aerospace, and software product engineering. GCCs increasingly own prototyping, testing, embedded systems, and digital twin development for global enterprises.

Finance & Accounting Services contributed 7% (USD 12.06 billion), including FP&A, accounts payable, reconciliation, treasury, and digital finance transformation.

Human Resources (HR) Services accounted for 3% (USD 5.17 billion), driven by HR operations, talent acquisition, payroll, and HR analytics in shared-services environments.

By Ownership Model (Captive GCCs, Hybrid GCCs)

Captive (Fully Owned) GCCs dominated in 2024 with 78% share, contributing USD 134.43 billion. As enterprises pursue long-term digital capability ownership, most new GBS investments-especially in India, Poland, and Mexico-are being set up as fully-owned centers with deeper integration into HQ decision-making.

Hybrid GCCs, with shared-risk operating models and co-managed service delivery between the client and partner organizations, accounted for 22%, representing USD 37.91 billion. This model is rising in manufacturing, retail, utilities, telecom, and mid-sized enterprises looking for lower upfront investment with scalability.

By Application (BFSI, IT & Telecom, Healthcare & Life Sciences, Manufacturing & Engineering, Retail & E-commerce, Others)

Banking, Financial Services & Insurance (BFSI) emerged as the largest application segment, capturing 31% share in 2024, equal to USD 53.42 billion. BFSI GCCs lead global transformation across risk analytics, compliance, underwriting automation, financial crime prevention, digital banking, fraud analytics, and cybersecurity.

Information Technology & Telecom accounted for 26% (USD 44.81 billion), driven by cloud engineering, network operations, 5G deployment, AI-driven service assurance, and platform modernization.

Healthcare & Life Sciences represented 13% (USD 22.40 billion), driven by rising demand for clinical operations support, RWE/HEOR analytics, medical affairs, pharmacovigilance, and payer/provider digital transformation capabilities.

Manufacturing & Engineering contributed 15% (USD 25.85 billion), supported by digital factories, robotics automation, digital twins, CAD/CAE engineering, and predictive maintenance analytics.

Retail & E-commerce accounted for 10% (USD 17.23 billion), fueled by omni-channel automation, supply chain analytics, digital merchandising, and AI-based personalization engines.

The remaining 5% included utilities, travel, media, and public-sector transformation projects.

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U.S. & Japan Market Insights: Two of the Fastest-Growing Enterprise Hubs

United States

The U.S. accounted for 38% of the global capability center services market, representing USD 65.49 billion in 2024. U.S. enterprises across BFSI, retail, technology, healthcare, and manufacturing continue to expand GBS/GCC footprints in India, Philippines, Mexico, Vietnam, Poland, and Costa Rica.

Recent Drivers:

• U.S. enterprise GCC expansion increased 23% YoY.
• More than 140 new capability centers were established globally by U.S.-based firms.
• GenAI adoption in GCCs rose 48%, primarily in product engineering and customer operations.
• Cloud modernization investments surged 33% YoY, strengthening IT & BPM demand.

Japan

Japan contributed approximately 9% of the global market, equal to USD 15.51 billion in 2024. Japanese enterprises rapidly expanded offshore and nearshore centers as part of their digital transformation mandates.

Key Indicators:

• Over 60 Japanese firms opened or expanded capability centers in India and ASEAN in 2024.
• Japan's enterprise automation spending grew 28% YoY, boosting BPM and IT service demand.
• Strong push toward semiconductor R&D, factory automation, and engineering GCCs.

Competitive Landscape: Leading Players Transforming the GCC Ecosystem

The market is highly competitive, with-it services giants, consulting firms, and digital engineering companies providing end-to-end GCC setup, scaling, transformation, and managed services.

Key Players Include:

• Accenture Plc
• Capgemini SE
• Genpact Limited
• IBM Corporation
• Infosys Limited
• Wipro Limited
• NTT DATA Corporation
• HCL Technologies Limited
• Cognizant Technology Solutions Corporation
• Tata Consultancy Services Limited (TCS)

These companies collectively support more than 65% of global GCC transformation programs, ranging from center setup and operating model redesign to AI engineering, cybersecurity, and enterprise digital transformation.

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Emerging Trends Shaping the Future of Capability Centers

Between 2025 and 2032, the capability center landscape will undergo significant transformation driven by:

• AI-native GCCs built for generative AI, large language models (LLMs), autonomous operations, and MLOps
• Hyperautomation (RPA, IDP, workflow orchestration) integrated across BPM and KPO
• Enterprise-wide cloud modernization and FinOps-driven cloud cost optimization
• Digital engineering COEs supporting product development, automotive software, and IoT platforms
• E2E cybersecurity command centers addressing zero-trust, SOC modernization, and global threat operations
• Multi-country GCC footprints, replacing single-location concentration risks
• GBS-as-a-Product operating models, improving agility and business outcome ownership

Conclusion: GCCs are Now the Backbone of Global Enterprise Digital Transformation

As global enterprises accelerate modernization, capability centers have become mission-critical to achieve scale, digital resilience, operating efficiency, and innovation speed. With demand rising across IT, BPM, analytics, engineering, AI, and cloud services, the global Capability Center Services Market is positioned for sustained, double-digit growth through 2032.

Enterprises that build future-ready GCCs-powered by AI, automation, cloud, and domain-led expertise-will unlock competitive advantage, operational savings, and long-term innovation capability.

Related Report:

1. Robotic Process Automation Market Size to Surge from US$3.1B in 2022 to US$23.3B by 2030 - 28.8% CAGR.
2. Digital Transformation Market Size Set to Triple to Over US$ 3 Trillion by 2030.

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