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Shifting roles and imperatives of Indian ER&D GCCs to deliver value to parent enterprises during the Covid pandemic
Shifting roles and imperatives of Indian ER&D GCCs to deliver value to parent enterprises during the Covid pandemic

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It is well known that change is inevitable. But the Covid pandemic has ushered in a change which has been so fast and so abrupt that many companies have had difficulties in adjusting to the new normal.

Various challenges have been being faced by the ER&D industry including ensuring business continuity in the midst of working from home, ensuring continuous project deliveries to the customers, issues being faced in sourcing and supply chain, and quicker transition to digital way of working etc.

In the middle of all these challenges, the Global Capability Centres (GCCs) in the ER&D industry have emerged strong pillar of support to deliver value to their parent enterprises. As per the Engineering Pulse Survey conducted by NASSCOM, which featured a survey of over 35 global ER&D customer enterprises, 82% of the respondents were highly satisfied by the performance of their GCCs during the Covid crisis, 100% of them believed that the GCCs had great potential to serve in a strategic role to their parent enterprise, and over 90% of the respondents had plans to maintain or ramp up their investment plans for the GCCs in India. Indian GCCs are also expected to ramp up in new digital technologies such as AI / ML, IoT, Big Data etc. to support the enterprises in their innovation-focused path to recovery.

In addition to the work done and the support already provided by the GCCs, the parent enterprises and stakeholders also want them to pick up additional responsibilities across the value chain.

GCC
  1. The GCCs are expected to enhance competency creation across new digital technologies. The world has become increasingly digital, more so in the last year. With more and more GCCs working with emerging tech such as AI, ML, NLP, IoT etc., it becomes imperative that they also lead in creating competencies across these technologies.
  1. In the midst of the pandemic, the GCCs are expected to continue to ensure business continuity.  By using the available resources and managing the shortage of teams, work from home scenarios, the GCCs have ensured that the projects deliveries did not suffer and this proactive approach is expected to continue in future as well.  
  1. GCCs are expected to drive scale. The roles and responsibilities of the GCCs continue to grow and it is imperative for them to attract the right kind of talent to drive scale.
  1. GCCs are expected to proactively respond to business risks. The past year has been full of uncertainty and crisis, whether it was quickly adapting to the digital way of working or ensuring business continuity when majority of the teams were working from home. It is imperative that the GCCs continue to be agile and proactively respond to the risks faced by them.
  1. The GCCs are expected to continue to drive innovation and digital transformation. The pace of digitalization has accelerated massively in the last year due to the pandemic. They must continue to act as hubs for digital talent and delivery as well as innovation accelerators.

Going forward the key imperatives for GCCs in India are expected to be – ­Innovation, Scale, Business Continuity, and Partnership

GCC 2
  1. Innovation – The GCCs are expected to be innovation leaders and domain experts and lead their parent organisations in their journey towards digital transformation by identifying new areas and developing competencies.
  1. Scalability – The GCCs are expected to drive scale which is required to meet the growing demands of their parent organisations and deliver growth.
  1. Business Continuity – The GCCs have ensured business continuity during the pandemic and are expected to continue to identify business risks and proactively take steps to prevent any surprises which might hamper the project delivery timelines.
  1. Equal partnership – GCCs are moving from being reactive to being proactive to the business needs of the parent organisation and are actively working to anticipate future needs and requirements.

The Indian ER&D Global Capability Centres have redefined their value proposition over the years. With skilled talent availability, access to a diverse market base, by leading the digital and innovation agenda for their parent organisations, etc, the Indian ER&D GCCs have increasingly been playing a larger strategic role and have been working as a strong partner within their organizations. However, they need to attract the right talent to answer the growing needs of their organisations to scale up and reach newer heights.

 

To read more about Global Capability Centres (GCCs), please click on the links below to read the NASSCOM Engineering Pulse Survey 2020 - Digital Transformation, the 2021 Imperative.

NASSCOM Website - https://nasscom.in/knowledge-center/publications/engineering-pulse-survey-2020-digital-transformation-2021-imperative

NASSCOM Community - https://community.nasscom.in/communities/digital-transformation/engineering-pulse-survey-2020-digital-transformation-the-2021-imperative.html


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Vandhna Babu
Principal Analyst - Research

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