man having fresh air

The Resilient GCC - How to reimagine your GCC after the unimaginable?

While the GCC community was affected by the second wave they worked through it with diligence, empathy and proactiveness as they did last year.

In March of 2020 when India was locked down for the next 21 days, Global Capability Centers (GCCs) in the country had to transition to a remote working model overnight. As a part of their business continuity planning most GCCs were well equipped for this transition. However, few were prepared for what came in the second wave, which has not only affected the GCC employees but also their families.

Most of the states, are now back in lockdown, to control an unprecedented surge of infections. Organizations have taken several measures to support their employees, and GCCs have been especially proactive in employee support.

We interacted with the leadership of some of the largest GCCs, to exchange ideas on leading practices and learnings, through primary research and a roundtable discussion. Several GCCs have had between 8% to 15% of their workforce directly or indirectly affected by the second wave. Many employees have recovered and many more are on the road to recovery. Sadly, fatalities and ‘long covid’, have also emerged as a harsh reality of this second wave. Our interactions confirm that the GCC community is dealing with this crisis in a practical and empathetic manner and has taken several measures to deal with this pandemic.

Medical aid extended to employees

From early in the crisis, they operationalized hotlines within the GCCs, to help those in need of ventilators, oxygen cylinders, hospital access, physicians and even meals. Several GCCs also mentioned that their employees, who had returned to smaller cities and towns, were the ones who needed the most support. Some GCCs have even conducted or are planning vaccination drives for their workforce. In the second wave, many organizations have enhanced their insurance policies to include COVID cover. Further, access to emergency funds is also being provided by many GCCs.

Deliverables re-prioritized

With many employees falling sick or being the primary caregivers, there has been an impact on productivity, and this is being monitored closely across centers. Most GCCs have re-prioritized their deliverables to consider the shortage of staff across teams. Some have even reduced administrative burdens to free up employee time. There have been, however, limited instances of Business Continuity plans being exercised, through outsourced service providers or leveraging the Global Business Services (GBS) network. The primary focus is on managing with the resources through cross skilling and increased use of digital enablers. Most of the leadership were in appreciation of the support and understanding, which they received from their global organizations through these hard times.

Promoting employee wellbeing

 
Nearly 75% of the GCCs we surveyed agreed that employee mental health was a concern. Employees have been permanently working from home for over fifteen months, and now with the added stress of this second wave of infections, GCCs are reaching out to employees to provide support in terms of changes in the employment model to add flexibility, outcome based ways of working without expectations around work hours and shorter work weeks. New employees who have joined in the past year have been most affected by the remote working, where they haven’t enjoyed an office environment, especially those who started their careers last year. During this extended period of work from anywhere, while digital enablers have continued to get an increased amount of focus, employee engagement and collaboration continues to be a challenge, because of loss of a physical connection and ineffective communication.

Policies instated for remote working

Over 70% of the GCCs have incorporated remote working scenarios in their policies and are reimbursing employees for home office equipment (e.g. furniture, UPS, mobile allowances etc.).

Revisit their real estate strategy

The second wave has also made the GCCs re-look at their real estate strategy, however, most have not changed contracts with service providers. Over 40% of the GCCs surveyed planned to release up to 25% of their existing real estate, with about 20% of them considering releasing between 25% - 75% of real estate.

Outlook for 2021

While expressing their outlook towards 2021 given the surge of COVID cases, over half of the GCCs surveyed felt that work from anywhere will continue until cases decline or a significant portion of the GCC workforce is vaccinated. To build a resilient operating model, over 1/3rd of the respondents believed that 25% - 50% of the roles can be performed remotely through adoption of a ‘Work from Anywhere’ model, subject to SEZ and/or other regulatory requirements. Interestingly, while 40% of the GCCs, interacted with, will continue to hire in the same city as their center, over half of the respondents are revisiting their talent acquisition strategy by expanding their reach to include other city talent pools.

The silver lining is that infections are slowing, providing some relief, but the crisis is far from over. We can never be fully prepared for the unknown, but the GCC community has been working through this crisis with the same diligence, empathy and pro-activeness as they did last year. 
 

Nitee Gupta, Director, EY also contributed to the article. The views expressed are personal.

The article was first published on ET.CIO


Summary

In our recent interaction with some of the largest GCCs, through primary research and a roundtable discussion we exchanged ideas on leading practices and learnings. Several GCCs had between 8% to 15% of their workforce directly or indirectly affected by the second wave. Our findings confirmed that the GCC community dealt with this crisis in a practical and empathetic manner and took several measures to deal with this pandemic.

About this article

Authors

Related articles

Have GCCs evolved into hubs for innovation?

EY outlines how MNCs are gradually converting their GCCs into innovation hubs, expanding their existing facilities and creating new Centres of excellence.

Why some Global Capability Centers (GCCs) cannot deliver value

EY outlines a few common themes observed over the years around why some Global Capability Centers (GCCs) fail. Learn more about best practices in running a GCC.