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GCCs offer path to solving SA's youth unemployment crisis

Chris Tredger
By Chris Tredger, Technology Portals editor, ITWeb
Johannesburg, 25 Jun 2026
Shobana Maikoo, head of TransUnion GCC Africa.
Shobana Maikoo, head of TransUnion GCC Africa.

Global capability centres (GCCs) have evolved from their traditional role as operational support hubs into virtual centres that use local talent to support business process management, technology support and analytics.

This is according to Shobana Maikoo, head of TransUnion GCC Africa, who adds that in SA, GCCs offer one of the most effective mechanisms to convert skills into real capability – as the tech industry takes note of the benchmark set by India.

“India is regarded as a benchmark due to its scale, experience and depth of capability in the GCC space. Over time, it has built a large, skilled workforce and a mature ecosystem that supports global operations across a wide range of functions. Importantly, GCCs in India have evolved beyond transactional work to include advanced capabilities such as product development, analytics and innovation, showing how these centres can create long-term strategic value,” says Maikoo.

According to Maikoo, SA’s GCC landscape is still emerging, but is steadily gaining momentum by leveraging local strengths, including a well-regarded contact centre industry, high levels of English proficiency and growing and analytics capabilities.

“While the market may not yet match the scale or maturity of more established regions, there is clear potential for expansion into higher-value services as organisations look to diversify their global operations.”

Training and employment

According to Stats SA, as of the first quarter (Q1) of 2026, 5.6 million young people (aged 15-34) were employed, while 4.7 million were unemployed. Trading Economics reports that the youth unemployment rate in SA increased to 60.9% in Q1 2026, up from 57% in Q4 2025.

Using TransUnion GCC as an example, Maikoo says since the inception of the company’s learnership programme in 2021, it has onboarded a total of 328 learners. To date, 56% of eligible learners have been absorbed into the company, with 71% of these learners retained.

Maikoo says GCCs differ from other skills development and training mechanisms – such as internships or mentorships – because they combine employment with continuous skills development.

“Instead of short-term exposure, individuals are embedded in real operational environments where they contribute to active business functions. This allows for hands-on learning, ongoing upskilling and direct alignment with global business needs, creating a more sustainable and scalable approach to developing talent.”

Establishing a GCC

Establishing a GCC is a structured process rather than a single step, Maikoo adds.

It typically begins with identifying the business functions best suited for centralisation, followed by selecting a location based on talent availability and operational fit. Organisations then design the operating model and invest in the technology, people and governance structures required to support it.

“While the model requires an initial investment, organisations generally realise value through improved efficiency, access to scalable and skilled talent, faster delivery and stronger operational resilience. Over time, GCCs increasingly contribute to innovation and business growth, strengthening their return on investment,” says Maikoo.

Maikoo agrees that shortages in specialised technology skills, particularly in areas such as cyber security, remain a well-recognised global challenge, but adds that GCCs play a meaningful role in enabling consistent skills transfer.

“However, measuring success purely by headcount does not fully capture the value being created. GCCs focus on developing depth of expertise by embedding learning into everyday work, exposing employees to global tools and practices, and enabling continuous development. This creates a more structured and scalable approach to building specialised capabilities over time.”

TransUnion points to the growth of virtual GCC models, which expand access to opportunities beyond traditional office-based environments. This enables organisations to tap into a broader and more diverse talent pool.

“GCCs have the potential to create sustainable employment while building globally relevant skills, positioning locations such as South Africa as competitive contributors to global operations. As the model evolves, the focus is increasingly shifting towards value creation, innovation and long-term capability building rather than purely operational delivery,” adds Maikoo.

Loraine Vorster, VP for sub-Saharan Africa at CompTIA, says: "Global capability centres are more than just employers – they can be powerful engines for skills development and economic growth. By exposing South Africans to global technologies, standards and ways of working, they help build the capabilities that modern economies require.”

However, Vorster adds that their long-term success will depend on the strength of the talent pipeline feeding into them.

“Employers need to clearly signal the skills they require and actively participate in talent development; education institutions need to align learning to industry demand; and skills providers need to equip learners with practical, job-ready capabilities. When those elements are aligned, GCCs can do more than create jobs; they can help create sustainable career pathways for South Africa's youth and strengthen the country's position as a globally competitive source of digital talent."

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