Drivers of Global Value Organizations
While GCCs started off as tactical cost saving centers, they have progressively evolved into strategic global value organizations:
Integrated Global Services: Instead of operating as isolated offshore delivery centers, GCCs today provide integrated services delivered seamlessly across locations. This required enhancing capabilities beyond basic tasks.
Talent and Expertise Development: The offshore talent pool has gained specialized domain skills like underwriting, data science, engineering, and supply chain expertise, enabling them to be drivers of business growth and innovation.
Leadership Vision: Heads of leading GCCs focused on expanding scope from cost focus to driving innovation, customer insights, and owning end-to-end processes.
Technology Leverage: Advancements in global connectivity, cloud platforms and collaboration tools enabled GCCs to operate seamlessly across geographies.
Strategic Benefits of Transitioning into GVOs
Forward-looking companies have realized tangible benefits by nurturing their GCCs into GVOs:
Cost savings plus innovation: GVOs drive efficiencies through process excellence while also contributing to new product development and IP creation. Costs saved range from 25% to 40%.
Rich insights: By owning core business processes, GVOs can provide data-driven insights back to business teams using analytics.
Talent magnets: GVOs attract and develop specialist talent that can seamlessly augment innovation centers and R&D labs across the world.
Enhanced agility: GVOs improve business agility by effectively coordinating processes across multiple locations 24×7.
GCCs have come a long way from being focused on labour arbitrage and cost savings. The combined talent pool across verticals that India offers has made GCCs part of long-term strategies of mid & large corporations across the globe while smaller organizations are waking up to the cost arbitrage available in India. Leading GCCs have successfully transitioned into integrated GVOs that combine domain expertise, technology leverage and talent depth to drive value beyond just costs. The evolution has been mutually beneficial – creating growth opportunities for offshore locations while enabling global enterprises to derive strategic advantages. We at Astravise help our clients leverage the vast talent pool across verticals, domain expertise and technology to set up a GCC that has the potential to transform into a GVO.