It is time for GCCs to springboard their digital advantage

Global Capability Centres (GCCs) are on the forefront of the accelerated pace of innovation that is happening in the country today. At a time when companies had to respond quickly to a global health crisis, stabilize operations and optimize costs while addressing complex people issues, GCCs played a very important role in ensuring business continuity and preparing for the future.
 

India’s attractiveness as a GCC destination is growing year-on-year. From just 500 GCCs a decade ago, there are about 1700+ GCCs in India today, employing more than 1.5 million people. The GCC industry in India is expected to double in terms of size over the next three years fueled by digital transformation, expansion of existing centers and addition of new centers. As GCCs mature, innovation, technology enablement and enhanced service portfolio have become top strategy drivers for the industry, as revealed by EY’s GCC Pulse survey 2020. 
 

By embracing a holistic digital transformation strategy GCCs, today, are in a unique position to deliver enhanced business value to parent organizations. Here are three ways by which GCCs have managed to develop a comprehensive digital transformation strategy during this pandemic:
 

1. Driving a ‘future fit’ agenda: GCCs are enabling the future fit agenda of their parent organizations, one that is both forward-looking and sustainable. During the pandemic, we saw GCCs shift their ERP’s and legacy applications to the cloud and increase adoption of technology (analytics, machine learning, process automation, etc.) in several enabling functions such as Tax. Some have implemented AI in key functions, such as in HR to manage the employee lifecycle from hire to retire. We have also seen companies explore delivery of legal services from their GCC. This future fit agenda has enhanced the value that GCCs deliver while expanding their scope of operations.
2. Reimagining GCCs and the workplace: GCCs were among the early adopters of the hybrid working model, with some parts already operating with it before the pandemic. They are, now, playing a critical role in reimagining workplaces. Many GCC leaders have said that the role of the office will change from place of work to place for collaboration. GCCs level the playing field for different generations through rapid technology adoption, thereby increasing their ability to be more inclusive while tapping into different talent pools across locations. GCCs have also been on the forefront for many leading practices around retention, continuous engagement benefits, diversity and inclusion.
3. Idea to implementation: GCCs have been among the front-runners of the digital transformation journey compared to other industries during these uncertain times. They have been involved in end-to-end product development, driven by internal innovation programs while leveraging emerging technologies. We have seen financial services companies undertake end-to-end product development covering technology, user experience and compliance among others. In the healthcare sector, clinical trials companies have supported pharma majors in trials. There are similar examples across industries, whether it is automotive, aerospace or consumer products. In addition, GCCs have also been partnering with the vibrant start-up ecosystem in India’s tech hubs and educational institutions.

The article was first published by NASSCOM.

(Sayan Banerjee, Senior Manager at EY also contributed to this article.)