The Symbiotic Relationship between Global Capability Centers and Technology Service Providers

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The Symbiotic Relationship between Global Capability Centers and Technology Service Providers

Zinnov

@Zinnov Consulting

March 13, 2024

Global Capability Centers GCC

308

In the hallowed halls of Davos 2024, a revelation echoed – that the business landscape was not just evolving but undergoing a transformative shift towards collaboration. This pivotal insight sparked a new paradigm, particularly for the dynamic synergy between Global Capability Centres (GCCs) and Technology Service Providers (TSPs). No longer locked in competition, these entities now dance together as collaborative partners, each contributing unique strengths to an intricate business tango.

GCCs and TSPs bring unique traits that complement each other for business growth. TSPs bring external expertise, scalability, and diverse industry insights, while GCCs focus on internal capability development, strategic objectives, and risk management. One thing was clear: collaboration was not just an option; it was the key to unlocking unexplored possibilities.

This transformative dance underscores a shift from competition to collaboration, embracing customer-centric business models. By marrying the agility and innovation of TSPs with the strategic depth and domain knowledge of GCCs, businesses find themselves not only navigating but thriving in the complex technological landscape. The heartbeat of this partnership? An ethos grounded in integrated, adaptable, and cooperative business practices, all centered around the needs of the customer.

Strengths Unleashed: GCCs and TSPs in Harmony

1. Enhanced Innovation and Competitive Edge: This partnership forged a crucible for innovation, merging GCCs’ strategic focus with TSPs’ cutting-edge expertise. Companies, thus armed, stand at the vanguard of technological trends, deftly meeting market demands and maintaining a competitive edge.

2. Strategic Resource Optimization: By leveraging TSPs for specialized skills, businesses liberated their GCCs to focus on core competencies and long-term goals. This strategic resource allocation ensured internal efforts aligned with growth objectives, while external resources addressed immediate, specialized needs.

3. Agility in a Dynamic Market: Collaboration has become the bedrock of business agility. TSPs, with their scalability and flexibility, allow companies to adapt swiftly to market changes without the burdensome overhead of developing in-house expertise for every new technology or trend.

4. Holistic Problem-Solving Approach: The union of GCCs and TSPs can become a formidable force against complex challenges. GCCs bring an in-depth understanding of the company’s ethos and strategy, while TSPs contribute diverse industry perspectives and innovative solutions, paving the way for comprehensive problem-solving.

5. Future-proofing Businesses: As the digital landscape continues to evolve, businesses embracing collaboration with both GCCs and TSPs will find themselves better equipped to navigate future challenges. This partnership will not only drive current innovation but lays the foundation for sustained growth and adaptation in the face of upcoming technological advancements.

Synergy in Action

1. GE and Infosys

Challenge: GE aimed to digitally transform its global industrial operations using advanced capabilities like IIoT.

Solution: GE opened a Digital Hub in Bangalore, partnering with Infosys to co-create intelligent grid solutions. The collaboration led to accelerated adoption of grid software and significant productivity improvements.

2. Shell’s IT Revolution

Challenge: Shell sought to streamline global IT operations and support capabilities, reducing operational costs.

Solution: Shell established an IT center in Bangalore and partnered with IBM and Wipro Technologies. This collaboration leveraged external expertise to enhance IT project delivery and support, resulting in significant cost efficiencies.

These case studies illustrate how collaboration between external tech expertise and global teams can streamline operations, providing a considerable competitive edge.

The dance between GCCs and TSPs transcends competition, offering complementary strengths that significantly enhance a company’s ability to innovate, adapt, and grow. Embracing this collaborative ecosystem allows businesses to align long-term goals with the agility to respond to immediate challenges, creating a synergistic relationship that maximizes value and propels both entities towards shared success. The future of business is not a solo act but a harmonious ensemble, where the melody of collaboration resonates, unlocking innovation and propelling enterprises towards unprecedented heights.

Read the full blog on the complementarity of GCCs and TSPs here.

Global Capability Centers Global in-house centres GCC GIC GICs captives

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Zinnov

Founded in 2002, Zinnov is a leading global management consulting and strategy advisory firm, with a presence in 10 global locations. Over the last 22 years, Zinnov has partnered with Global Enterprises and Fortune 2000 companies across their value creation journeys to develop actionable insights – across revenue, talent, innovation, scale, and optimization. Zinnov enables companies to develop and optimize a global engineering footprint through center setups, technology and functional Centers of Excellence (COEs), portfolio optimization, partnerships, and real-time data/ insights – through its unique GCC Accelerator Platform (GAP) offering. This multi-lever approach helps Zinnov’s clients achieve higher R&D efficiencies, innovation, and productivity via an immersive and highly networked model. Zinnov’s expertise also includes advising global PE firms in asset shortlisting, target evaluation, due diligence, and value creation for their portfolio companies through a globalization lens.