GICs and that Buzzword Called Innovation – Is it Justified?
The proverbial value chain, and any movement in the upward direction is usually indicative of that much offered term called innovation, and that it has been put to good use. Over the last decade and a half – and unarguably – GICs have demonstrated time and again, their ability to adapt and innovate to add great value.
It is now clearly evident that leaders in GICs based out of India are empowered to assume global roles, and also double up in their leadership capacity to manage multiple geographies. Innovation enablers include creation of special roles, technical leadership programs, strong HQ sponsorship, and availability of good technology/domain talent. Let’s look at the example of an American financial software maker which focussed on customer driven innovation. Sponsored by the HQ, the mandate for the Managing Director of India was to build products in India for the domestic market. The outcome: Agrinova is a product built in India for India – It creates a peer-peer market place for farmers using SMS. Similar examples are replete in other verticals as well.
The GICs in IT Services, when examined through the lens of innovation, shows up examples of faster market acquisition, ability to build greater customer connects with significantly improved margins. In BPM, Shared services in HRO for instance, is now being provided through India centres to effectively cater to HQ and other centres. Similarly, the ER&D space, is characterized by end-to-end product ownership, where India centre takes responsibility only for products for which it can execute right from product conceptualisation, design, development to testing. And where it can’t, the products are moved back to HQ or outsourced to third-party vendors.
This thread loops back to our earlier premise of high growth because of Agile way of thinking and allied technology. We would like to know your views on how far GICs have been able to innovate in their India operations. Can you share some examples as well?