75%
of large enterprises with existing GCCs have expanded or expect to expand (ISG Market Lens, GCC Study).
Over the past 8 years, the GCC has experienced an 11% compound annual growth rate (CAGR) in India alone, compared to the IT sector's 8% CAGR (According to ISG Research and the data from NASSCOM)
Global capability centers (GCCs) have evolved from supporting standardization and efficient delivery of corporate operations to becoming centers of excellence that provide significantly enhanced value to enterprises. They provide access to top talent, build differentiating business capabilities, and drive transformation, innovation, scalability and business growth. Modern GCCs must consider:
By leveraging our extensive market data on IT and business services, along with our substantial experience in transformation, sourcing, and GCC establishment, ISG helps organizations improve service delivery strategies and reinvent their GCCs, regardless of maturity level.
| Models | Description | Pros | Cons |
|---|---|---|---|
| Captive Centers | A facility that is fully owned and managed by the parent company. | Offers complete control over all processes, operations, and quality standards. Ensures strict alignment with the company's objectives and internal protocols. | High operational costs and significant investment required. Can lack flexibility and may take longer to adapt to market changes or scale quickly. |
| Hybrid | A blend of captive center operations with outsourcing to third-party vendors. | Combines flexibility with cost efficiency, allowing businesses to scale as needed. Provides external expertise while keeping key functions under the company's control. | Managing third-party vendors alongside in-house operations can lead to complexity. Possible issues with quality control and accountability. |
| Joint Ventures | A collaboration between the parent company and local entities or international partners. | Allows for shared investment and risk, while providing access to local expertise and market resources. Fosters innovation and growth through collective knowledge. | Potential for conflict or misalignment between partners. Divided control and profits. Slower decision-making processes due to the need for consensus. |
| Build-Operate-Transfer (BOT) | A third-party establishes and runs the operation, later transferring ownership to the parent firm. | Reduces initial investment and operational risk. Enables a smooth transition to full ownership. Speeds up operational setup while requiring a lower upfront financial commitment. | Transitioning ownership may result in integration challenges. Less control during the initial phase, and performance may depend on the third party's management. |
Find out more from the ISG Market Lens™ study on global capability centers by clicking below.
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Learn MoreAlthough the COVID-19 pandemic years are becoming distant memories, the changes it brought to how we work remain. Many global organizations tried, in vain, to reinstate the old ways of working with their Return-to-Office (RTO) policies. These policies face stiff resistance from the workforce, who have experienced the pros and cons of working remotely and understand that they can deliver quality output without physically being in the office. End-user technology, encompassing all the devices, applications and tools needed for work irrespective of location, has become a key driver in ensuring a successful hybrid work strategy. Ensuring an uninterrupted end-user technology experience is at the forefront of the list of priorities of enterprise IT teams. The enterprise IT teams should ensure that the devices and applications that employees use while working in a remote or hybrid environment are always up and running. There should be an automated resolution of issues associated with the end-user technology IT assets. If any issue requires reaching out to enterprise IT, it should be resolved immediately.
When we analyzed the Future of Work Services market last year, we defined 2023 as the year of stabilization. While the 2 – 3 years of the COVID-19 pandemic are increasingly becoming a distant memory, the changes it brought in
the way people work persist and are redefining how organizations frame their new future of work strategy. Enterprises started adopting return-to-office (RTO) policies last year, a move that, according to multiple studies, employees did not receive well. Organizations are implementing hybrid ways of work policies, allowing their workforce the flexibility to work from a location of their choice but mandating in some instances where in-office presence is essential. These policies profoundly guide how enterprise workplace leaders define the technology and operational approach with their workforce.
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Companies with cloud-based contact centers quickly implemented a work-from-home setup with minimal disruption when the pandemic hit. The benefits of remote work have been on display ever since. The ISG Provider Lens™ Contact Center as a Service Global 2020 report explores how accelerating your contact center’s move to cloud can bring with it new personalization and workforce management capabilities.
Organizations must continue to adapt using automation, collaboration tools and optimal office environments to ensure they can make the most of their greatest asset – their people.
A digital workplace brings together people, processes and technology to deliver a consistent, secure, efficient and effective employee experience anywhere and anytime on any end-user device.
