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Digital @ Global Capability Centers (GCCs)
Overview
As technology paves the way for business model reinvention, the digital and IT services function of GCCs are leading the charge – transforming business processes, driving innovation, enabling growth and securing competitive advantage. Their portfolios now include higher-value services such as business process management, engineering R&D and information technology. Leaders across GCCs and their headquarters view digital and IT as central to future value creation. Seizing opportunities amidst these challenges demands robust digital and IT capabilities – a key strength of today’s transformative GCCs.
GCC Sayantan Short Version
Over the past few years, the number of GCCs providing digital and IT services has grown significantly. Global companies are increasingly turning to their GCCs in India to carry out high-impact technology functions. The aim is to contain costs while driving technological innovation. Global leaders often consider the cost of operating a GCC to be lower than that of engaging the services of traditional technology firms.
From cost center to catalyst for growth
Traditionally, digital and IT was treated as a non-differentiating factor focused mainly on minimising costs and providing internal support. There was little emphasis on innovation. Systems were often fragmented and digital and IT functions outsourced wherever possible. Over time, it morphed into a shared service, enabling GCCs to provide centralised digital and IT services across the organisation by consolidating resources and processes.
Today, GCCs serve as transformation hubs, delivering end-to-end services, and owning key decisions across technology, architecture and processes. They operate as autonomous digital and IT entities – strategic engines for innovation and product ideation.
IT as a cost center
- Siloed operations
- IT as a support function and to carry routine operations
- Resource extension for business enablement
- Reduced duplication of efforts leading to cost efficiency
IT as an advanced support service in an SSC
- Adhere to time-bound service agreements
- Provide sophisticated support such as network management and application development
- Centralise IT resources across the organisation
- Focus on process standardisation to reduce complexity
GCC as a digital and IT center of excellence (CoE)
- Cross-functional collaboration with business units like HR and finance
- Increased role in new product and service development
- Handling complex tasks such as data analytics
- Building new sets of capacities through digital and IT CoE
GCC as cutting-edge technology and innovation hub
- Business growth driver
- Mastering emerging technologies such as AI, blockchain and Industry 4.0
- Establish a competitive edge through advanced technologies
- Innovation focus, sustainability and ethical practices
Transformative trends leading to the evolution of digital and IT in GCCs
GCC IT service operating model
GCC IT service operating model
- Refresh/restructure IT operating model of GCC
- Design and setup IT operating model for new GCC
COE assessment and setup
COE assessment and setup
- Setup vision and design principles
- Design operating model covering processes, tools, governance, skills, resources and KPIs
Strategic vendors management
Strategic vendors management
- Design vendor balanced scorecard and operationalise it for vendor grading
- Design and setup operating model
Value management office (VMO)
Value management office (VMO)
- Design, setup and operationalise value management office
- Baseline the outcomes of initiatives and monitor the value delivery via dashboards
CIO KPIs improvement
CIO KPIs improvement
- Baseline key CIO KPI
- Drive KPIs improvement initiatives using dashboards
Portfolio and programme management
Portfolio and programme management
- Assist in portfolio lifecycle management using dashboards
- Assist in PMO office setup and operationalisation using PM tools
Product management
Product management
- Assist in product lifecycle management and governance
- Design business processes
- Gather requirements to map business objectives
Agile methodology
Agile methodology
- Co-creating agile operating model
- Assist in operationalisation
Enterprise architecture (EA)
Enterprise architecture (EA)
- Design and setup EA office
- EA blueprinting across business, application, data and technology domain
IT cost optimisation
IT cost optimisation
- Assess and recommend cost optimisation areas across IT landscape
IT service management
IT service management
- IT services catalog management
- Re-engineered IT services management processes
GCC maturity assessment
GCC maturity assessment
- Diagnostics of business functions across landscape from digital maturity perspective
- Assist an existing GCC to evaluate their current digital capabilities
Our accelerators for GCCs
GCC Project Management Office cockpit
GCC Project Management Office cockpit
Our take on GCCs and IT services provided from them
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