Topics In Demand
Notification
New

No notification found.

The Road Ahead for GCCs – 2022 and Beyond
The Road Ahead for GCCs – 2022 and Beyond

November 17, 2021

4082

0

At the forefront of innovation across products and processes, Global Capability Centers (GCCs) today are creating a competitive advantage for their global enterprises and those based in India are particularly well-positioned to accelerate to the next level. With increasing global leadership roles, these Centers are providing end-to-end support on complex work areas to deliver business impact that goes well beyond cost savings and operational improvement.

Year 2021 saw many GCCs initiate their transition to a new normal post the pandemic – one anchored on increased endorsement for the GCC model, increasing responsibilities beyond traditional workstreams and accelerated adoption of digital technologies. However, these organizations will still face the challenges of navigating through factors such as accessing niche talent, adopting newer digital technologies, handling rising consumer expectations, increasing demand for analytics, and rapidly transforming business models driving the need to regularly recalibrate strategies.

The following five areas emerged as being critical to the success of these Centers: 

  1. Prepare for the long haul – ready a war chest to take the talent scramble head on

Structural issues suggest demand-supply will remain globally imbalanced in the near term. GCCs will need to make conscious efforts to address talent-related challenges considering an array of avenues such as investing in improving brand perception in the talent market, out-of-the-box talent acquisition methods (such as hiring from alternative industries, partnering with the external ecosystem, developing contingent workforce strategies and acqui-hiring), creating learning cultures, helping the workforce to continually develop skills, and creating targeted programs to promote diversity, equity, and inclusion, among others.

  1. Understand the future of work is NOT the future of work from home

A principle-led design approach to global workforce strategy will be key to the future of work. A holistic view on the future of work  that takes into account the three Ws – Worker (talent model, sourcing model), Workplace (locations portfolio, WFH/hybrid), and Workways (technology, operating model) – will be critical to future growth and evolution.

  1. Expand services beyond traditional areas leveraging cross-functional skills

While IT and digital services continue to remain a priority, GCCs should also look to tap into non-traditional services areas such as marketing where a combination of business understanding, and tech skills can help deliver greater value (e.g., targeting customers better). Consulting or internal advisory is another area where some GCCs are looking to expand their capabilities. This includes providing thought leadership and guidance to entities beyond the GCC in areas such as Intelligent Automation adoption.

  1. Define location and talent strategies to move beyond “cheap and big” to “sustainable (long-term) and inclusive”

Location and talent strategies need to move beyond conventional paradigms to include Environmental, Social and Governance (ESG) goals, including diversity and sustainability. Factors such as climate change has material impact on services delivery. Many organizations are already factoring in diversity requirements into their long-term location and talent strategies.

  1. Embrace productivity as your superpower

Organizations need to adopt a multi-pronged approach to improving productivity and achieving business objectives. Cost and operational improvements are hygiene! A sustainable approach to managing productivity needs to consider factors such as:

  • Breaking or introducing silos, enhancing coherence of business and IT teams, and rethinking business models
  • Optimizing the talent pyramid and rethinking skills coverage
  • Reassessing technology necessities, prioritizing modernizations, and adopting innovations
  • Enhancing delivery, optimizing operations, and focusing on stakeholder experiences
  • Rethinking delivery distribution, enabling remote workplaces, and understanding the importance of proximity to the client
  • Collecting and sharing knowledge and experiences in a structured manner

Enterprises need to reimagine

The value proposition of India GCCs has evolved significantly over the past decade. India GCCs are truly poised  to  reach greater heights – integrating more deeply with their enterprises, blurring administrative lines across geographies, and expanding revenue impact potential. Click here to  learn more about Everest Group’s research on GCC evolution.

 

Author: Bharath M, Practice Director, Everest Group (bio). Reach out to Bharath M for any questions or if you would like to continue the discussion.


That the contents of third-party articles/blogs published here on the website, and the interpretation of all information in the article/blogs such as data, maps, numbers, opinions etc. displayed in the article/blogs and views or the opinions expressed within the content are solely of the author's; and do not reflect the opinions and beliefs of NASSCOM or its affiliates in any manner. NASSCOM does not take any liability w.r.t. content in any manner and will not be liable in any manner whatsoever for any kind of liability arising out of any act, error or omission. The contents of third-party article/blogs published, are provided solely as convenience; and the presence of these articles/blogs should not, under any circumstances, be considered as an endorsement of the contents by NASSCOM in any manner; and if you chose to access these articles/blogs , you do so at your own risk.


Everest Group is a leading research firm helping business leaders make confident decisions. We guide clients through today's market challenges and strengthen their strategies by applying contextualized problem-solving to their unique situations. This drives maximized operational and financial performance and transformative experiences. Our deep expertise and tenacious research focused on technology, business processes, and engineering through the lenses of talent, sustainability, and sourcing delivers precise and action-oriented guidance. Find further details and in-depth content at www.everestgrp.com.

© Copyright nasscom. All Rights Reserved.