Archive · 27 Jul 2026
GCCs Face Growth Challenges Due to Organizational Drag
Global Capability Centres (GCCs) in India are facing challenges in their next phase of growth.
A report by Great Place To Work India shows that 41% of organizations are stuck in a 'frictional stage,' struggling with bureaucracy and workplace politics.
Only 13% have reached the 'accelerated stage' of innovation.
The main issues are AI readiness, innovation, and talent retention.
Many employees feel unsafe at work, and mid-level managers lack support for upskilling.
Innovation is hindered by workplace politics and lack of recognition.
To retain talent, organizations need to focus on workplace wellbeing, empowerment, and leadership accessibility.
The key to future growth is reducing organizational drag and creating a supportive environment for employees.
41% of GCCs are in the frictional stage, 46% functional, and 13% accelerated.
30% of CHROs expect significant AI-driven changes, but 1 in 4 employees lack psychological safety.
Only 13% of organizations are in the accelerated innovation stage, with workplace politics being a major hurdle.
Talent retention is challenged by gaps in workplace wellbeing, empowerment, and leadership accessibility.
Reducing organizational drag is crucial for turning ambition into impact.
- Who
- Global Capability Centres (GCCs) in India
- What
- Organizational drag slowing down growth and innovation
- When
- Current phase of GCC growth
- Where
- India
- Why
- Bureaucracy, workplace politics, and lack of psychological safety
Organizational Drag
Accelerated Growth
AI Readiness
Organizational Drag
Workforce not ready for AI-driven changes, with 1 in 4 employees lacking psychological safety.
Accelerated Growth
Investment in AI and future-ready capabilities to drive innovation and strategic roles.
Innovation
Organizational Drag
41% of organizations stuck in frictional stage, with workplace politics and lack of recognition hindering innovation.
Accelerated Growth
13% in accelerated innovation stage, with high tolerance for mistakes and absence of workplace politics.
Talent Retention
Organizational Drag
Bottom-quartile organizations lag in workplace wellbeing, empowerment, and leadership accessibility.
Accelerated Growth
High-performing organizations excel in career growth and leadership accessibility, retaining talent.
- Organizational Stages
- 41% frictional, 46% functional, 13% accelerated
- AI Readiness
- 30% of CHROs anticipate significant AI-driven changes
- Psychological Safety
- 1 in 4 employees lack psychological safety
- Innovation Velocity
- 16:2 in accelerated organizations, 4:2 in frictional
- Workplace Politics
- 82% of high-velocity innovators report absence of workplace politics
- Talent Retention Gaps
- 22% in workplace wellbeing, 16% in empowerment