India's Global Capability Centres (GCCs) are undergoing a significant transformation, moving towards smaller teams of around 50 employees and reducing backfill mandates to 70-75 replacements per 100 exits from the previous 85-90. This shift indicates a departure from the long-standing headcount-led growth model, as companies increasingly leverage Artificial Intelligence (AI) and automation to enhance productivity with leaner teams. According to research by ANSR, nearly 60% of new GCC setups since 2020 are from mid-market firms that adopt a 'start lean, scale later' approach. The demand for high-skill roles in AI, data, cloud, and cybersecurity has risen sharply, with hiring for these niche skills increasing by 40-50%. Experts highlight that this trend is not a contraction but a strategic pivot towards precision hiring, focusing on building capabilities that are future-ready rather than merely maintaining headcount parity. As companies align their GCCs more closely with their US headquarters, the emphasis is on AI-driven productivity, which is expected to outpace traditional headcount growth in the coming years.