Hexaware’s GCC 2.0 push: Analysts expect strong enterprise demand post SMC Squared acquisition

Hexaware Technologies (NSE: HEXT), a global IT and business process services provider, has strengthened its position in the high-growth global capability center (GCC) market with the acquisition of SMC Squared. Announced on July 17, 2025, the deal marks a major strategic step in Hexaware’s effort to expand its GCC 2.0 service line, a next-generation enterprise delivery model combining human expertise with AI-driven operational efficiency.

The move reflects the growing demand for GCCs that go beyond cost reduction, with enterprises now seeking innovation-led, outcome-focused centers that integrate deeply with core business operations. Market observers suggest that by integrating SMC Squared’s execution maturity with its proprietary platform-led IT delivery, Hexaware is positioning itself to secure long-term, high-value enterprise transformation contracts in multiple global markets.

Why do analysts expect Hexaware Technologies’ GCC 2.0 expansion to attract enterprise demand in the $105 billion global capability center market by 2030?

The GCC market is witnessing a sharp evolution as enterprises shift from traditional back-office outsourcing to value-driven offshore operations. According to a Nasscom-Zinnov report, the Indian GCC market alone is projected to exceed $105 billion by 2030, fueled by enterprise demand for governance-driven, AI-powered, and analytics-rich service delivery. Analysts believe Hexaware’s GCC 2.0 framework directly aligns with this transformation, making the company an attractive partner for global enterprises planning large-scale GCC deployments.

Hexaware’s strategy centers on combining artificial intelligence with digital governance to deliver measurable business outcomes across functions such as enterprise resource planning, analytics, and employee experience optimization. The acquisition of SMC Squared adds a critical layer of governance maturity and a proven build-optimize-transfer delivery model that has earned trust from global brands. By merging these capabilities, Hexaware can now offer a unified service stack that addresses advisory, setup, operations, and optimization, providing a significant edge over IT service providers still competing on cost arbitrage.

Institutional investors have responded positively to the acquisition, with sentiment pointing to the potential for higher-margin advisory-led GCC transformation deals. Analysts highlight that Hexaware is likely to capture contracts traditionally secured by consulting-heavy IT service players, given its expanded delivery capabilities and its growing global footprint.

What client successes indicate SMC Squared’s value, and how could this influence Hexaware’s future growth?

SMC Squared has delivered notable success for clients such as Papa John’s International, Inc., where it helped modernize ERP systems, optimize Workday integrations, and establish a scalable analytics foundation. Executives at Papa John’s have credited SMC Squared for building a GCC team that operates as a true strategic extension of its core business, highlighting the value of a governance-first approach.

Market observers believe Hexaware will replicate such success stories by applying SMC Squared’s methodologies across its enterprise accounts. This could be particularly relevant for industries such as healthcare and financial services, where governance, data security, and digital transformation are critical to GCC adoption.

Furthermore, SMC Squared’s presence in Latin America, the UK, and Europe provides Hexaware with a ready-made operational base to expand into markets that are increasingly prioritizing innovation-led GCCs over traditional outsourcing hubs.

What is the future outlook for Hexaware’s GCC 2.0 growth strategy post-acquisition?

Hexaware is expected to deepen its investments in AI-driven automation, analytics, and cloud transformation to further strengthen its GCC 2.0 positioning. Analysts predict that the company will also explore additional partnerships or acquisitions to enhance vertical-specific expertise, especially in regulated sectors like financial services and healthcare.

With demand for stable, innovation-led GCCs expected to rise steadily through 2030, Hexaware’s expanded capabilities could help it emerge as a leading IT service provider in this space. If execution remains consistent and integration challenges are managed effectively, institutional sentiment suggests Hexaware could transition from being a mid-tier IT services player to a top-tier competitor in the global GCC transformation market.