3 minute read 27 Nov 2020
EY GCC Pulse Survey, 2020

EY GCC Pulse Survey, 2020

Authors
Arindam Sen

EY India Global Business Services & Operations Partner

Seasoned technology executive with rich experience in digital transformation. Leader in setting up GCCs. Enjoys playing badminton, drums and composing electronic music.

Kunal Ghatak

Partner, Business Consulting, EY India, Global Business Services

Kunal has 18 years of experience in shared services and outsourcing strategy. He has helped multinational companies set up and optimise capability centers across the globe.

3 minute read 27 Nov 2020
Related topics Consulting
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  • Global capability centers (GCCs) pulse survey 2020

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This year’s survey highlights GCC’s outlook around five focus areas including, Vision and Strategy, Digital, Talent, Operations and Resilience.

Global Capability Centers (GCCs) are an integral part of the parent organization, ever so during the current scenario, delivering round the clock services with almost similar service levels and minimum disruptions. Although the agenda of superior value offering in the value chain remains constant, the current business environment has opened topics around the new operating model, borderless talent, renewed efficiencies and business continuity. In order to facilitate these changes, GCCs need to embrace technology, add new skills and explore the partner ecosystem while keeping the organization safe.

The advantage of GCCs in India is really the availability of technology talent and ability to scale. No other geography provides that – Scale, Quality, Speed and Cost.
Rajiv Memani
EY Global Emerging Markets Committee Chair; EY India Chairman and Regional Managing Partner

What are the new trends in the industry and what is the outlook for GCCs? – We have tried to answer some to these questions in this edition of the EYs GCC Pulse Survey, 2020.

The survey captures responses from 31 Indian GCCs, catering to multiple geographies within varied industries (across Advanced Manufacturing and Mobility, Consumer, Telecom, Media & Technology, Health Sciences and Wellness, Financial Services and Energy).The respondents have a diverse maturity profile and functional coverage with an average of ~2,200 employees and an average age of operations of ~9 years. The survey is categorized around five pillars - Vision and Strategy, Digital, Talent, Operations, and Resilience. Each of these pillars have an important bearing on the way GCCs envision their future operating model.

Vision and Strategy

With a significant majority focusing on next generation thinking, the GCC leadership is now playing a critical role in defining their strategy centered on technology enablement and developing an innovation culture.

100%

of the respondents said that their GCC have a detailed vision and strategy in place.

GCCs ranked innovation, technology enablement and enhanced service portfolio as the top three drivers of their strategy. 

Digital

As part of the impetus on digital transformation initiatives, GCCs are reinventing products, engaging with customers, optimizing operations and empowering employees.

95%

GCCs say that Superior customer service continues to be the driving factor of their digital strategy followed by process simplification through automation.

As GCCs move up the value chain within their organizations, digital transformation has become a key enabler to drive success. Most of the GCCs have developed a comprehensive digital strategy and are leading their way towards practical implementation.

Talent

Employee engagement practices and talent management initiatives are paramount for success of any GCC with a sustainable focus on delivering customer centric offerings.

93%

of the respondents indicated that talent acquisition is the most important lever to drive scale.

With an average of 2,200 FTEs in the centers, GCCs are placing a strong focus on talent development to ensure scalability in their operations.

Operations

As service delivery evolves to remote and digitally augmented models, organizations need to navigate through the challenges around scalability and demand allocation.

Almost

60%

of the GCCs we reached out to were comfortable having 20%- 40% of their staff operating virtually by 2023.

Resilience

With the GCCs focusing on creating long-term resilience, they are revaluating their approach towards critical areas of risk management, data security and business continuity planning.

83%

GCCs stated that their frequency of Business Continuity Plan (BCP) testing is set to increase and Secure configuration of remote systems is the top priority for a robust and secure remote working environment.

With India having a large ecosystem of start-ups, there are several incubation accelerators that have helped the collaboration between the GCC community and start-ups. Collaborating with the start-up ecosystem gives GCCs access to new business models that can help further the innovation agenda of the enterprise.
Arindam Sen
EY India Global Business Services & Operations Partner

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Summary

COVID-19 has brought a significant change in the ways of working, increased digitization, agility, personalization, shifting mindset to favor flexibility, freedom and independence of work are some of the mega trends which are redefining the operating model for GCCs in the future.

About this article

Authors
Arindam Sen

EY India Global Business Services & Operations Partner

Seasoned technology executive with rich experience in digital transformation. Leader in setting up GCCs. Enjoys playing badminton, drums and composing electronic music.

Kunal Ghatak

Partner, Business Consulting, EY India, Global Business Services

Kunal has 18 years of experience in shared services and outsourcing strategy. He has helped multinational companies set up and optimise capability centers across the globe.

Related topics Consulting
Upvote