Global Capability Centers (GCCs) are rapidly transforming from back-office support units into strategic "nerve centers" that are driving innovation, transformation, and resilience across energy enterprises. A new KPMG report, titled "From Cost Centre to Nerve Centre of the Energy Enterprise," highlights this evolution, noting that traditional operating models are becoming insufficient in the face of electrification, decentralization, and digitalization.

The Rise of GCCs as Strategic Hubs

Once viewed as cost centers, GCCs are now emerging as strategic transformation hubs, empowered by digital technologies, data, and AI. These centers are deploying technologies like agentic AI, intelligent automation, digital twins, and advanced analytics to provide predictive insights, enable real-time operational optimization, and accelerate low-carbon innovation. By embedding AI into core workflows, GCCs are reshaping asset planning, maintenance, and risk management, while also reducing costs and improving agility. KPMG suggests that energy companies that embrace GCCs can achieve radical change, compared to the incremental improvements within traditional structures.

India: A Global GCC Epicenter

India has become a global hub for GCCs, hosting over 1,700 centers and projected to reach 2,400 by 2030, employing nearly 2.8 million people. This growth is fueled by India's deep talent pool in AI, automation, and engineering. The adoption of AI/ML and data science in Indian GCCs has increased from 65% in FY19 to 86% in FY24, while cybersecurity adoption has surged from 55% to 88%. Tier-II and Tier-III cities in India are also gaining traction due to their cost-efficient workforce and improving infrastructure, supported by new state-level GCC policies. KPMG's report emphasizes that GCCs in India, with their strengths in AI, automation, and engineering, are poised to evolve into strategic command centers and drive next-generation solutions in the energy ecosystem.

The Future of Energy Transformation

KPMG urges energy companies to integrate GCCs into their core operations, embrace AI-native models, and restructure governance to move away from siloed structures. The report warns that failure to adapt could lead to significant financial and business repercussions. By 2030, GCCs are expected to function as the digital brains of energy enterprises, covering the entire value chain from exploration to distribution. This will enable real-time optimization, predictive maintenance, emissions management, and innovation in areas like green hydrogen and carbon capture.

Anish De, Global Sector Head, Energy Natural Resources & Chemicals (ENRC), KPMG International, noted that the energy sector is undergoing a profound transformation, where traditional operating models are no longer sufficient, and customer expectations are rapidly changing. He stated that GCCs are emerging as the nerve centers of energy enterprises, combining AI, analytics, and talent to drive operational excellence and innovation, allowing organizations to convert cost into capability and deliver customer-centric energy solutions.

Vikas Gaba, Partner and National Head – Power and Utilities at KPMG India, stated that around 50% of new GCCs globally are being established in India, due to its ideal location, large talent pools, and cost advantages. He added that GCCs are shifting from being cost centers to hubs of innovation and transformation, making India a significant base for GCCs.

Ultimately, KPMG concludes that energy enterprises must act decisively to unlock the full potential of GCCs, as making them organizational nerve centers will be central to future-ready operating models.