1. Focus on employee value proposition amid increasing cost and talent crunch :
Post-COVID-19, GCCs have witnessed an 18% increase in the overall workforce cost. Increased hiring and focus on employee value proposition for talent attraction and retention have been the highest contributors to this overall spike in the cost. Furthermore, investment in digital platforms for training new hires and upskilling existing employees has added to the overall cost.
With GCCs pivoting to provide high-end services by hiring of niche skillsets, enhancing employee value proposition has taken the center stage. The key priorities to revamp the employee value proposition include increased focus on employees' wellbeing, employer brand, and providing a customized growth path to the employees. Some GCCs are also exploring the managed services model with build-operate-transfer kind of model for faster setup and scaling of required capabilities.
2. Shifting to satellite ofﬁces in low-cost locations for lower rent and higher capacity utilization of hybrid model :
In the recent times, office rents in Tier I cities have significantly increased1 owing to supply constraints and shortage of Grade-A ofﬁce spaces. With a hybrid working model, GCCs now have the option of managing their existing ofﬁce space with increasing headcount, without necessarily expanding.
GCCs are looking forward to expanding into tier-2 cities or satellite centre and are also exploring Opex-based models for establishing these new facilities without upfront Capex investment. Co-working office spaces have a lower operating cost, they are becoming more popular for facility expansion. Professional office spaces are now available with flexible and negotiable lease terms like first right to refusal.
3. Pivoting on value-add niche services through high end computing systems, investments in cloud environment and enhanced security :
To support the rapid transition to a distributed workforce with minimal risk and optimum costs, GCCs are moving toward using an as-a-service model for both hardware and software requirements. Organizations are prioritizing innovation through intelligent automation, AI/ML/AR-VR, thereby reducing human intervention with enhanced quality. Furthermore, cloud adoption is helping GCCs realize signiﬁcant cost savings by eliminating legacy technology stack and enabling real-time monitoring and reporting. Organizations are also proactively approaching virtualization, cyber security, data protection, serverless architecture and compliance programs.
4. Focus on reducing carbon emissions has led to investment in sustainable travel options :
During the pandemic, transportation and travel cost decreased signiﬁcantly. With employees starting to come back to ofﬁce in a phased manner, transport cost is expected to go back to pre-COVID-19 levels soon.
In this backdrop, GCCs are leveraging route optimization applications, demand consolidation to further optimize travel expenses. Given increased climate consciousness, GCCs are partnering with travel partners investing in green initiatives to identify sustainable travel options. Majority of the GCCs today are investing in sustainable infrastructure, environment conservation and ergonomics, prioritizing facilities with LEED certifications and low carbon footprint.