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From Cost Centers to Innovation Engines: How European GCCs Are Being Rewritten
Over the last few years, I have had many conversations with CIOs, Heads of Engineering, and Business Leaders across Europe about Global Capability Centers (GCCs).
Most conversations still start with scale and efficiency. But the most meaningful ones end with innovation, ownership, and speed. That shift captures exactly how GCCs in Europe are being rewritten today.
The GCC Model Is Fundamentally Changing
Traditionally, GCCs were designed as cost centers. Their success was measured in utilization, throughput, and savings. That model is no longer enough.
Enterprises today are navigating AI-led disruption, cloud-native platforms, data-driven decisioning, cybersecurity threats, and increasingly complex regulations. In this environment, GCCs that only execute struggles to stay relevant.
Across Poland and the broader CEE region, we’re seeing GCCs evolve into engineering and innovation-led hubs, owning platforms, products, and digital outcomes that sit at the core of the business.
Why Europe and Why Now?
Europe’s Emergence as a Strategic GCC Destination Is Backed by Solid Fundamentals
- Poland alone has 650,000+ IT professionals and produces ~70,000+ ICT graduates annually, creating one of the strongest engineering and digital talent pipelines in the EU, increasingly skilled in cloud, data, AI/ML, and GenAI.
- Poland hosts 1,500+ global capability and business service centers, employing 300,000+ professionals, demonstrating deep maturity in running mission-critical, global-scale GCC operations beyond traditional shared services.
- Key hubs such as Warsaw (150k+ IT talent), Kraków (80k+), Wrocław (75k+), TriCity (50k+), and Poznań (40k+) act as specialized clusters for product engineering, data platforms, cybersecurity, and digital innovation.
- The broader CEE region (Romania, Czech Republic, Hungary) is seeing rapid GCC growth, with cities like Bucharest, Cluj Napoca, Prague, and Budapest emerging as strong hubs for engineering, analytics, and multilingual digital delivery, enabling a diversified nearshore GCC footprint.
- Enterprises are increasingly moving regulated and mission-critical workloads, including core platforms, data estates, and AI-driven solutions, into European GCCs, leveraging EU-grade governance, security, and responsible AI frameworks.
- CEE is the fastest growing nearshore GCC region in Europe, driven by demand for high-value engineering, product development, and digital innovation, not just cost efficiency.
- Enterprises are moving regulated and mission critical workloads including core platforms, data estates, AI models, and security operations into European GCCs, not just support functions.
- Europe offers a unique advantage for responsible AI adoption, combining advanced engineering talent with strong governance, privacy-by-design, and ethical AI frameworks.
- European GCCs are becoming hubs for AI-enabled automation, intelligent platforms, and data-driven decision-making, accelerating time to market while reducing operational risk.
- Proximity to business, product, and customer teams enables faster experimentation, co-creation, and AI-driven innovation in agile, product-centric operating models.
This is driven by:
- Deep STEM and engineering talent pools
- EU-grade data protection and security (GDPR by default)
- Nearshore collaboration and cultural alignment
- Proven experience in BFSI, life sciences, manufacturing, retail, and travel
As a result, European GCCs are now trusted with cloud platforms, data and AI initiatives, cybersecurity, and full product engineering ownership.
Europe is no longer just a nearshore destination. It’s where enterprises are building AI-ready platforms, responsible innovation, and next-gen digital capabilities.
From Projects to Products and Platforms
One of the most apparent shifts I see in successful GCCs is the move from project delivery to product and platform ownership.
Modern European GCCs are structured around:
- Long-lived product teams
- Platform roadmaps aligned to business strategy
- Agile, DevOps, and SRE-driven engineering
- Tight integration with global product and business leadership
Increasingly, these platforms are designed to be AI-ready from day one with data, automation, and intelligence embedded into the core.
Talent Is the Real Battleground
In an AI and platform driven world, talent becomes the real differentiator.
Leading GCCs are investing in:
- Upskilling in cloud, data engineering, AI/ML, and GenAI
- Strong engineering culture and craftsmanship
- Career paths that retain senior, high-impact talent
- Partnerships that accelerate capability building, not just hiring
Without this, GCCs risk becoming execution arms when what’s really needed is engineering leadership.
How Xebia Supports This Journey: Engagement Models That Scale
One thing we have learned in Xebia is that there is no single “right” GCC model. Different organizations need different starting points and flexibility to evolve.
That’s why we support multiple engagement models across Europe:
- Advisory & GCC Blueprinting
Helping organizations define the why, where, and how from location strategy and operating model to talent and governance design. - Build–Operate–Transfer (BOT)
A proven model to launch GCCs quickly, derisk early execution, and transition ownership once the center reaches maturity. - Hybrid GCC / Managed Pods
Blending captive teams with Xebia led engineering pods for speed, access to niche skills, and outcome-driven delivery. - Dedicated Engineering & Product Teams
Long lived teams aligned to platforms and products, operating as a seamless extension of the enterprise. - AI, Data & Cloud Acceleration Programs
Focused engagements to embed AI-first thinking, modern data platforms, and cloud-native engineering into GCCs.
The unifying factor among all models is a commitment to engineering excellence, AI-first design, and long-term value creation, rather than focusing solely on short-term cost savings.
The real question is no longer “Should we build a GCC?” It’s “Is our GCC built to win in an AI first world?”
To get a clear, executive-level overview of what it takes to build or expand a Global Capability Center in CEE, check our website.
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