Global Capability Centres (GCCs) in India are entering a pivotal new phase, transitioning from merely scaling operations to spearheading artificial intelligence adoption, product development, and strategic innovation. However, a significant challenge is emerging: internal organizational friction is acting as a hidden brake on their ambitious growth trajectory.
A recent report by Great Place To Work India, titled “The Zero Drag Experience,” reveals that a substantial 41% of organizations remain in a “frictional stage,” with only 13% achieving an “accelerated stage” of innovation. This organizational drag, stemming from bureaucracy, workplace politics, weak psychological safety, and leadership gaps, is directly impacting key priorities for GCCs: AI readiness, innovation capacity, and talent management.
The Challenge of Organizational Drag
Organizational drag manifests as a slowdown in execution and a stifling of potential. It prevents GCCs from fully leveraging their investments in cutting-edge technologies and talent. The report underscores that while GCCs are heavily investing in AI and future-ready capabilities, their internal cultures may not be evolving at the necessary pace.
For instance, 30% of Chief Human Resources Officers (CHROs) anticipate significant AI-driven changes to roles, yet one in four employees reports not experiencing psychological safety at work. Furthermore, mid-level managers, crucial for driving change, are identified as the least supported cohort for upskilling, creating a growing disparity between business transformation goals and workforce preparedness.
Innovation Stifled by Friction
The innovation problem within GCCs is often not a lack of ideas but rather an inability to move those ideas from conception to execution. The report indicates a stark difference in “innovation velocity” between organizations in the frictional stage and those in the accelerated stage. High-velocity innovators are characterized by management that actively seeks and responds to suggestions (90% vs. 73% in the bottom quartile) and a greater tolerance for honest mistakes (89% vs. 73%).
Perhaps the most telling factor is workplace politics: 82% of high-velocity innovators report an absence of workplace politics, compared to a mere 63% in bottom-quartile organizations. When factors like political maneuvering, lack of recognition, or fear of failure permeate the employee experience, individuals hesitate to speak up, experiment, or challenge established thinking, causing promising ideas to lose momentum.
Beyond Talent Attraction: Retention Matters
As GCCs assume more strategic roles, the talent challenge has shifted from attracting specialized and AI-ready professionals to retaining them long enough to make a meaningful impact. The report highlights significant gaps in everyday employee experience between talent-retention leaders and laggards.
Bottom-quartile organizations trail their higher-performing peers by substantial margins in areas such as workplace wellbeing (22%), empowerment (16%), leadership accessibility (15%), and career growth (11%). Employees may join a GCC for the allure of AI projects, but their decision to stay often hinges on fundamental questions: Do I feel empowered? Can I access my leaders? Is there a clear career path for me?
Reducing Drag for Future Advantage
The next phase of GCC growth will not solely depend on the quantity of talent or technology acquired, but critically on the speed at which organizations can convert skills into capabilities, ideas into tangible outcomes, and ambition into impact. The GCCs that will truly pull ahead are those that effectively identify and eliminate the internal friction holding their people back.
Ultimately, the competitive advantage for Global Capability Centres in the coming years may not be about acquiring more horsepower, but rather about achieving significantly less drag within their organizational structures.