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Digital transformation through emerging tech in Global Capability Centres (GCC)
Digital transformation through emerging tech in Global Capability Centres (GCC)

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Evolution of shared services into GCC

From the early nineties, business services have been reimagined to target operating models that take advantage of talent available globally. Since then, global centres have become an integral part of delivering effective solutions to the internal organisational customers. Business services have three key components in design – the process objective, the performance or service delivery and the governance and control. The key focus areas are undergoing a shift to meet more strategic objectives rather than just processes. Agile models are emerging where the large organisations are learning from the start-up ecosystem to start small and then scale up. This has led to innovation, business model restructuring and a shift from simply focusing on internal customers to external as well.

One of the key shifts is moving towards and as-a-service economy, making it possible for organisations to replace traditional capital expenditure (capex) investments in enabling technologies and service solutions with operating expenses (opex)-oriented pay for performance solutions.

In the anything-as-a-service economy, enterprises leverage technological innovations that disrupt traditional business models by enabling workers to use information more efficiently, readily share knowledge, collaborate, and make more informed, accurate decisions, thus, providing more efficient services. These new organisational and governance concepts supported by emerging technologies are enabling an entirely new business transformation opportunity around Enterprise Services that is similar to the emergence of ERP applications two decades ago.

 

What does the buzz look like?


India has emerged as a preferred destination for multinational companies for setting up of GCCs. Recent reports indicate that there are ~1,500 GCCs in India employing 1.38+ million people. Out of these, ~140 GCC were set up between 2019 and 2021 by multinationals. Further, nearly 26% of Fortune 500 and 15% of Forbes 2000 have GCCs India. The number is expected to grow significantly with 200-500+ new GCCs expected over the next three years which will consolidate India’s position as a global leader in this space.

Over the last few years, GCCs have been shifting from traditional support services towards advanced digital offerings. GCCs are emerging as global R&D centres/ Centres of Excellence and accelerating the adoption of technologies such as artificial intelligence (AI), data analytics, automation, cloud computing, social media, and the Internet of Things (IoT).

 

What next?

The GCCs will eventually evolve into a Global Intelligent Enterprise through a complete overhaul of processes using new technology-infused performance and control parameters that would be measured on value delivery and not just cost management.

The futuristic digital operating model would require a new set of metrics. While cost optimisation and quality of outcomes will remain paramount for any GCC, leaders will need to reinvent the metrics that contribute to productivity and quality. For example, if the automation has proliferated an enterprise and the value delivery measure for digital needs further revisit, trade-offs on speed versus process, new tech versus ERP, and data engineering accuracy for management decision-making will come under the measure.  All these need to be viewed keeping the changes in perspective. Therefore, how agile the enterprise responds to external change could be a measure of compliance and control.

GCCs have quickly moved up from the bottom of the value-chain performing low-value business processes to more strategic and high-value activities as global innovation hubs. The expectation is to now deliver a data-driven digital and AI-centric integrated future. It is imperative to be a future fit from a target operating model that is constantly evolving and is simultaneously agile. 

“The choices we make today create the future that we dream of” – So choose wisely!

 

asx

Kalpana B

CEO and Chief Thinker dGTL

Grant Thornton Bharat

 


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