Global In-house Centers (GICs), previously called captive centers, have significantly evolved over the last two decades. GICs actively play a phenomenal role in the digital transformation of an enterprise. With the wave of technological disruption and the dynamic priorities of today’s CXO, the GICs have gained immense opportunity to help parent organizations move along with the digital advancements in a cost-effective manner. What used to be a “one-size-fits-all” approach, has now radically evolved to a tailor-made approach catering to the unique needs of a business.
GICs came into existence in India during the late 1990s with the concept to reduce operational costs by hiring inexpensive technical resources and affordable commercial property to set up operations. The same concept continued for ten years, but in the 2000s GICs transformed to being multifunctional centers delivering business excellence. Ever since then, the GICs witnessed a paradigm shift with a focus to provide value-added services through innovative technology and delivery centers, enhancing productivity and business efficiency.
India currently has over 1000 GICs operating across various sectors including IT and ITES, software development, engineering, BFSI, telecommunications, healthcare, pharma, biotechnology, retail, manufacturing etc. With such phenomenal expansion, GICs are generating $19 billion export revenue and employ more than 7,00,000 people.
The Priorities of Today’s CXO
With the advancements in technology and digital transformation as the backbone of GICs, CXOs today are doing away with legacy IT systems and investing in developing in-house systems that enable them to be digital-ready. Along with that, other aspects also come into the picture.
Market Analysis & Audience Segmentation
The traditional broad market segmentation catering to a larger target group has moved to a micro targeting strategy as of today. It is more focused on targeting a niche audience to build on the frequency of customer engagement through a variety of channels. The next step after planning market segmentation strategy is to identify your direct competitors in the market and be vigilant of the innovation and technology they are bringing to the table. With the power of predictive analytics, organizations can extract customer and business insights, that give them a pathway to plan ahead of time to predict future demand as well as develop real-time pricing models.
Operations and Processes
Agile project management methods were a result of the limitations and challenges of the age old waterfall method. Agile implementation is a more transparent and continuous improvement framework to maximize business value consistently. Many organizations implement agile methods as it reduces the overall risks associated with software development. The main features of agile methods is the iterative planning and continuous feedback process that helps software development teams to align and adapt to the dynamic changes throughout the software development lifecycle, that puts visibility into project, addressing unique business needs.
Analytics & data
The importance and relevance of business data couldn’t have been more meaningful without the application of predictive analytics. Data Analytics empowers business leaders to make informed decisions and avoiding heavy losses or mistakes. Analytics provides real-time data and insights about customers and every business function, which optimizes and improves business outcomes.
Global CXOs expect Indian GICs to be at the forefront of digital evolution. To be adept of evolving digital technologies such as Artificial Intelligence, Machine Learning, Predictive Analytics, IoT and other technologies as well as the expert enterprise leaders to deliver cost-effective productivity and on-demand solutions. With this
Although CXOs and GICs are on the same page on most aspects, there are areas of improvement for Indian GICs. For them to meet on common grounds, Indian GICs need to focus on all or few components in order to meet global requirements.
GIC Future Ready: Key Components for Indian GICs to Focus on
Overall Business Accountability: Ensuring consistency and ownership in quality service delivery of overall organizational aspects to maximize business outcomes and improve efficiency.
Talent Pool Mapping & Strategy: Even if you are equipped with latest technology implementation in your processes, the quality of your talent pool matters a lot more. Investing in enterprise-class talent and top notch leadership gives you competitive edge.
Traditional IT v/s Digital IT: Transform existing IT infrastructure capabilities with new age digital technologies.
Big Data Analytics: Track service delivery effectiveness through analytics that offer valuable insights to make better informed decisions.
Drive Cost Optimization: Stay at the brim of productivity enablers, bring out the best of both worlds – technology and tech talent.
Organizational Efficiency: Adopt agile methodologies for better collaboration among cross-functional teams and continuous improvement throughout the software development lifecycle.
The Hexagon Advantage
The wave of technological disruption has flooded the market with tech career opportunities. However, to choose the cream of the crop, GICs should rely on industry experts and partner with them. Hexagon offers GICs the right workforce acquisition strategy and access to world-class tech talent that eventually supports your business transformation and excellence.
To conclude, several GICs are on the path to evolve with changing priorities. Some of them have significantly reduced costs and maximized scalability, while others are gradually taking steps to modify and reinvent themselves by adding value to their parent organizations. GICs in India need to develop a value proposition that supports the dynamic changing environment of the marketplace.
Leverage the expertise of talent acquisition leader, make Hexagon your exclusive talent hub partner. Talk to our consultant today.