Five reasons Hexaware’s SMC Squared acquisition could reshape GCC 2.0 delivery

Hexaware Technologies’ acquisition of Dallas-based SMC Squared marks a significant step in redefining the future of Global Capability Centers (GCCs), often referred to as GCC 2.0. According to the company’s announcement, the deal strengthens Hexaware’s managed services portfolio and creates deeper U.S.-India operational synergy. Industry observers believe this signals Hexaware’s ambition to move beyond traditional outsourcing and position itself as a partner for enterprises looking to build innovation-led, captive technology hubs. As the GCC 2.0 narrative gains traction, the acquisition could set new benchmarks for hybrid delivery models.

How could Hexaware’s SMC Squared deal accelerate innovation and redefine the GCC 2.0 operating model?

The first major reason is SMC Squared’s proven expertise in building and scaling captive technology centers for Fortune 500 clients. The company has successfully designed GCCs focused on product engineering, digital transformation, and analytics. By acquiring this capability, Hexaware gains access to a structured playbook for setting up strategic captives faster and with a stronger emphasis on IP-led development. Analysts suggest this integration could help global enterprises reduce time-to-market for digital products while enabling Hexaware to shift toward engineering-centric, high-value service delivery.

A second reason is the unique hybrid operating model that SMC Squared brings. The company’s “Build-Operate-Transfer” (BOT) framework allows enterprises to establish technology centers with an eventual option to take ownership. By embedding this model, Hexaware can now offer end-to-end GCC lifecycle management—from setting up and stabilizing operations to transferring them under client ownership. This hybrid delivery approach, blending U.S.-based governance with Indian offshore execution, aligns closely with GCC 2.0’s demand for flexibility, speed, and innovation rather than pure cost arbitrage. Market observers believe this could give Hexaware a competitive edge in attracting clients looking for scalable yet customizable GCC structures.

The third reason lies in the access to niche talent pools. SMC Squared has cultivated specialized expertise in cloud-native product engineering, AI-driven operations, and enterprise-grade cybersecurity—capabilities that are essential for next-generation GCCs. Integrating this talent base positions Hexaware as a co-creation partner rather than just an outsourcing vendor. Industry analysts point out that as GCCs shift toward research and development and product innovation, having access to specialized skills will be a critical differentiator.

A fourth strategic reason is the deal’s alignment with regulated industries. SMC Squared has an established client base in healthcare and financial services—sectors where Hexaware already has deep domain knowledge. This overlap could allow Hexaware to expand faster in markets where compliance, data security, and regulatory governance are paramount. Analysts believe such sector-focused GCCs will become key as enterprises in regulated industries seek controlled environments for innovation, making Hexaware’s combined expertise an attractive proposition.

Finally, the acquisition positions Hexaware to shape the global evolution of GCC 2.0 models. By combining managed services scale with BOT-driven captive expertise, Hexaware can experiment with outcome-based contracts, accelerator-led digital transformation, and innovation labs embedded within GCCs. According to industry estimates, this shift could help enterprises move GCCs from cost-saving centers to revenue-generating innovation engines. This strategic repositioning reflects the broader transformation of GCCs into integral parts of enterprise growth strategies.

Hexaware’s acquisition of SMC Squared underscores a growing trend where IT services companies acquire GCC specialists to gain a competitive edge in the managed captives market. As GCC 2.0 adoption accelerates globally, Hexaware is expected to scale its hybrid delivery framework across the U.S. and India, providing a blueprint for future IT-GCC collaborations. Market observers suggest the deal could influence how large enterprises design technology hubs, with Hexaware emerging as a key player in shaping the next wave of digital transformation through strategic captives.