• Financial services firms are shifting from traditional outsourcing toward hybrid GBS models that blend captive Global Capability Centers with outsourced innovation partners
• EY’s 2024 survey shows 61% of firms committed to GBS, with 23% scaling beyond transactional services
• Critical functions like risk, compliance, and cybersecurity are being insourced, while outsourcing firms are chosen for innovation and resilience
• Cyber threats, talent shortages, and cost pressures remain challenges
• GenAI, automation, and value-based contracts are key enablers of transformation



Financial services organizations are rapidly rethinking how they run their global operations, moving away from traditional outsourcing and toward hybrid global business services (GBS) models that combine captive capability centers with strategic partnerships.

According to EY’s 2024 Global Survey, 61 percent of organizations are now committed to the GBS model, with nearly a quarter reporting mature operations that extend well beyond transactional work. 

Leading banks are expanding their India-based centers to focus on artificial intelligence and advanced analytics, positioning GBS as a driver of resilience and innovation.

The pandemic was a turning point. Remote delivery, digital collaboration, and heightened regulatory scrutiny forced firms to diversify their delivery models and reduce dependency on traditional outsourcing. 

Captive Global Capability Centers (GCCs) are increasingly anchoring critical functions such as risk, compliance, finance, and cybersecurity, while outsourced providers are chosen for scalability, innovation capacity, and cultural fit.

“The decision-making calculus has shifted,” said one industry expert. “Cost still matters, but it is no longer the only consideration. Firms want outsourcing partners who can deliver resilience, cybersecurity rigor, and long-term transformation.”

This convergence of insourced and outsourced strategies is reshaping financial services operating models. Yet the transition is not without hurdles. Institutions face mounting risks around service quality, cyber exposure, and talent attrition. 

SonicWall’s 2022 Cyber Threat Report revealed a 105 percent year-on-year increase in ransomware, a trend hitting banks particularly hard. At the same time, shortages of specialists in generative AI, cyber risk, and regulatory operations are creating bottlenecks in scaling new digital platforms.

Cost pressures further complicate the picture. Inflation and volatility in global labour markets are eroding the traditional arbitrage that made outsourcing attractive. Legacy contracts built on full-time equivalents or transaction volumes also sit uneasily alongside demands for agility, resilience, and value-based outcomes.

To adapt, firms are modernizing their contracting practices, embedding continuous improvement, and investing in intelligent automation. GenAI and agentic AI are being deployed to strengthen resilience, automate decision-making, and enhance workforce capacity. 

A new emphasis on collaborative governance models is helping align global teams to regulatory-grade standards while maintaining operational agility.

The strategic prize is clear. By orchestrating the right mix of GCCs, outsourcing partnerships, and AI-enabled automation, banks can enhance operational resilience, boost cost agility, and secure talent pipelines for emerging models of work. 

These shifts are also positioning GBS organizations as internal transformation engines rather than cost centres, embedding leadership readiness and regulatory alignment into daily operations.

As financial services firms continue to navigate volatile economic and regulatory conditions, hybrid GBS models are fast becoming the blueprint for the future. 

Those that combine resilience with digital fluency and innovation capacity are expected to lead the sector in the next phase of global disruption.