ANNOUNCEMENT

Hexaware Positioned as a Visionary in the 2026 Gartner® Magic Quadrant™ for Custom Software Development Services

Gartner, Magic Quadrant for Custom Software Development Services, By Jaideep Thyagarajan, Ryan McKinney, Nathan Davie, 7 October 2026. Gartner and Magic Quadrant are trademarks of Gartner, Inc. and/or its affiliates. Gartner does not endorse any company, vendor, product or service depicted in its publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner publications consist of the opinions of Gartner’s business and technology insights organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this publication, including any warranties of merchantability or fitness for a particular purpose. This graphic was published by Gartner, Inc. as part of a larger research document and should be evaluated in the context of the entire document. The Gartner document is available upon request from Hexaware.

GCC2.0

What is GCC 2.0?

GCC 2.0 represents the strategic evolution of Global Capability Centers (GCCs) from primarily cost-arbitrage, back-office functions into innovation-and-value-creation hubs that drive enterprise transformation—not just support it. Where traditional GCCs focused on transactional operations like finance, HR, and IT support, GCC 2.0 embeds capabilities such as R&D, data engineering, and digital product development directly into offshore centers, aligning them to business outcomes and growth initiatives.

How Have GCCs Evolved?

GCC 1.0: Cost-optimizing centers that deliver value through high-volume, low-complexity work by leveraging a global workforce.
GCC 1.5: Centers with advanced technology capabilities, including development, digital transformation, data science, and process automation.
GCC 2.0: AI-first, innovation-led centers that leverage accelerators, digital platforms, talent ecosystems, and outcome-based metrics.

What Are the Key Characteristics of GCC 2.0?

AI-Driven Operations: Embedding automation and machine-learning algorithms into core workflows to optimize decision-making and efficiency
Digital Dexterity: Building platforms that support rapid prototyping, cloud-native development, and continuous delivery
Open Innovation Ecosystems: Co-innovation with start-ups, universities, and internal business units to accelerate R&D cycles
Adaptive Talent Models: Agile, cross-functional teams upskilled in emerging technologies and customer-centric design
Outcome-Based Metrics: Shifting from activity counts to KPIs tied to revenue growth, customer satisfaction, and time-to-market

What Are the Benefits of GCC 2.0?

Strategic Leverage: Transforms centers into profit-and-innovation centers, boosting enterprise value creation
Competitive Differentiation: Rapid scaling of new digital services and products through centralized expertise
Talent Magnet: Positions GCCs as global talent hubs, enhancing retention and employer branding
Agility & Resilience: Accelerates response to market shifts via modular architectures and API-driven platforms

What Are the Challenges in Implementing GCC 2.0?

Change Management: Aligning global stakeholders to new operating models and governance structures
Cultural Shift: Fostering a mindset of continuous innovation and risk-taking within traditionally process-driven teams
Technology Integration: Harmonizing legacy systems with cutting-edge AI/ML platforms and cloud services
Talent Transformation: Reskilling existing workforce while attracting niche digital experts in a competitive market

What Are Best Practices for a Successful GCC 2.0 Transformation?

Define a Clear Vision & Roadmap: Establish milestone-driven plans that tie GCC initiatives directly to corporate strategy.
Invest in Change Leadership: Deploy dedicated change-management resources to guide cultural and organizational shifts.
Foster Collaborative Governance: Create cross-functional councils that include business, IT, and GCC leadership for alignment.
Scale Smart Pilots: Start with focused “lighthouse” projects in AI or digital engineering to demonstrate quick wins.
Measure What Matters: Implement dashboards tracking business outcomes—revenue impact, customer NPS, cycle-time reduction—rather than just headcount or ticket volumes.

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