How GCCs can leverage partner ecosystems to enhance innovation

In brief

• Leading GCCs are pursuing innovation by collaborating with academia and start-ups.
• There are multiple models that facilitate this collaboration, depending on the objectives of both GCCs and their partners.
• Together, they generate innovative solutions, accelerate their time-to-market and reduce costs.

The outlook for Global Capability Centres (GCCs) in India appears optimistic, driven by favorable tailwinds. As GCCs evolve rapidly, they are transitioning from their traditional back-office roles to become ‘innovation engines’, with emphasis on functions such as engineering, product development, digital transformation and next generation GCC technologies.

This evolution has also brought in the recognition that relying solely on internal capabilities may not suffice to drive large-scale innovation. To lead in technological advancements and industry trends, GCCs require a robust mix of diverse expertise and cutting-edge capabilities. It is essential for GCCs to establish governance structures that effectively scale innovation programs and proactively plan career paths for innovation-related roles. This includes building expertise in recruitment and talent development, particularly in specialized areas like next generation technologies.

Marked by increased collaboration with top academic institutions and start-ups, this shift in expectations is fostering innovation and driving higher value creation for both the organization and its business partners. This is often referred to as partner ecosystem, which supports mutually beneficial relationships between an organization and its external partners.

GCCs can pursue these collaborations either to generate their incremental or disruptive value. Incremental collaborations focus on refining existing processes and addressing current business challenges, while disruptive collaborations strive to create high-impact solutions that span the entire industry value chain, extending beyond the usual scope of work.

How GCCs benefit from these collaborations

GCCs stand to gain significantly from these collaborations, with two primary value propositions:

1. Access to next-generation technologies: By partnering with academia and start-ups, GCCs can access the latest technology advancements, integrating them into their operations. This collaboration enables rapid prototyping and iteration, reducing the time-to-market for new and innovative products and services. Such synergy not only boosts operational efficiency but also positions GCCs at the forefront of market trends.

2. Accelerated innovation with minimal investment: GCCs can leverage external resources and expertise with these partnerships, all without significant capital investment. This approach minimizes the financial risk associated with innovation, allowing GCCs to explore new opportunities and scale solutions in a cost-effective manner.

How partners benefit from these collaborations

Academic institutions at the forefront of research, intellectual development, and practical implementation seek to gain the following benefits:

1. Access to financial and knowledge resources: Collaborations with leading GCCs provide academia and their incubated start-ups with essential financial support and access to industry expertise, reducing costs and accelerating their innovation journey.

2. Joint promotion of advanced research: Through these research collaborations, academia gains opportunities to pursue advanced research projects and jointly develop intellectual property (IP), sharing both rewards and risks with the company.

3. Access to early market insights and product validation: Start-ups incubated by academic institutions not only gain the opportunity to run paid pilots but also benefit from greater customer visibility, allowing for quick feedback and validation of their product ideas.

What are the typical models for GCC-Partner collaborations?