Tech & Sourcing @ Morgan Lewis

Global Capability Centers (GCCs) enable global enterprises to provide information technology and business process services from a central delivery location.

2025 has seen a notable push by companies to establish dedicated capability centers—or global capability centers (GCCs)—in countries with lower-cost resources and access to a strong talent pool. According to S&S Insider, the global GCC market was estimated at about $128.5 billion in 2023 and is expected to increase to more than $300 billion by 2032, growing at a rate of 13.51% CAGR. NASSCOM reports that India leads the GCC market, currently hosting over 1,700 GCCs, employing more than 1.9 million people, and having an 11% CAGR.

Interest in offshore business centers, commonly known as global capability centers (GCCs), continues to rise as US companies across industries look to establish overseas offices and hire skilled workers to support critical business functions and technology services.

As we look ahead to 2025, it's clear that the next few years will bring about groundbreaking shifts across industries, with technologies such as AI, quantum computing, data centers, robotics, and autonomous vehicles leading the charge. These innovations are far more than buzzwords—they have the potential to redefine how we live, work, and interact. In this article, we dive into the top technologies set to make a significant impact in 2025 and explore why they’re worth watching closely.

Open-source software (OSS) and artificial intelligence (AI) are commonly used terms in today’s rapidly evolving tech landscape. Both are pivotal in shaping modern technology but are rooted in different goals and philosophies. OSS promotes collaboration and transparency, while AI looks to mimic human behaviors. Despite their objective differences, there are intriguing intersections between OSS and AI, which this article will explore.

Artificial intelligence (AI) is top of mind for all businesses looking to grow. Economic researchers point to AI as a key factor to boost the economy, and believe that AI could result in billions, if not trillions, of dollars in technology-related spending. However, this potential growth will not be possible in isolation; it requires massive amounts of supporting infrastructure.

By way of update to our recent reporting on the California legislative efforts to regulate artificial intelligence (AI), on September 29, 2024 California Governor Gavin Newsom vetoed SB 1047, a bill imposing new AI safety regulations, while approving AB 2013, a law mandating transparency in generative AI.

As discussed in a previous LawFlash, the California legislature recently passed SB 1047. Along with AB 2013, which is focused on transparency and is also awaiting Governor Gavin Newsom’s signature, California lawmakers are innovating on artificial intelligence (AI) at Silicon Valley speed.

Employers in the Asian region face novel challenges in connection with the heightened competition for talent in the technology sector. Offering remote or flexible work arrangements can serve as a competitive advantage. However, it is essential for companies to consider implications related to immigration, tax, data privacy, security, and employment law.

The leaders of Morgan Lewis’s aerospace and defense industry team will be hosting Space and Satellite Night in our Houston office on September 26, featuring a discussion on space commercialization developments followed by a reception. Join counsel and executives from leading aerospace and defense companies, together with Morgan Lewis lawyers representing active industry participants in a range of issues, to explore trends, opportunities, and legal, regulatory, and commercial challenges impacting the industry.