The latest trends driving transformation in the GCC industry


By Keerthi Kumar, Partner at Deloitte India Consulting

Understand the foreground
India is home to a huge 50% share of the global GCCs. He has witnessed the paradigm shift in the evolution of GCCs from backbone centers to multifunctional and strategic global partners. The Covid-19 pandemic has forced GCC leaders around the world to adopt radical ways of working, which has led to rapid advances in the GCC’s post-pandemic 2022 landscape. Deloitte’s Global Engineering R&D Pulse 2022 Survey indicated satisfaction levels of over 85% among demand markets with the performance of their GCC ERDs in India, primarily due to the way in which the GCC in India managed the pandemic situation.

With the normalization of return to work and hybrid setups, according to Deloitte’s 2021 Global Shared Services and Outsourcing Survey, GCCs are experiencing game-changing transformations, orbiting around the three key areas – work, workforce- work and workplace.

GCCs are now transforming the way of working and emphasizing automation, the development of specialized digital capabilities (such as analytics, cloud, AI/ML), innovation and the adoption of practices of integrated and flexible talents. Automation and digital transformation RPA, automation, reporting and process excellence are now priority areas for at least 52% of GCCs, driving large-scale transformation initiatives across the organization. The customer’s need for digital-first solutions translates into redesigned and integrated end-to-end processes. We’ve seen exponential adoption of RPA solutions, with 69% of CCMs using RPA to streamline processes in areas such as enabling data transfers, payroll processing, financial analysis, auditing and reconciliation, employee onboarding and helpdesk, among others. However, the digital agenda has gone beyond RPA. ~50% of GCC companies also prioritize areas such as single-instance ERP, cloud systems,
agile enablement, self-service platforms, virtual support, case management and workflow tools.

As more and more end-to-end processes are housed in GCCs, there is also increased traction in analyzing reports through predictive and cognitive AI/ML/NLP capabilities, to achieve best 360 degree business view and provide real-time insights. for both internal and external stakeholders. Our survey shows that 67% of companies say their GCC’s primary focus over the next 3 years will be to build new capabilities or centers of excellence around data and analytics, cloud, reimagining processes, emerging technologies, etc.

Talent integration
According to the 2021 GCC Value Proposition for India Nasscom Deloitte report, GCCs directly employ 1.2-1.3 million people, contributing as a 4X multiplier to create 5.2-5.5 million jobs. Thus, CCGs have a significant impact on the formation of human capital for the future. This has forced the GCC to prioritize the development of a strong culture, well-being, and flexible and hybrid work practices, in conjunction with financial incentives for its workforce.

GCCs have nurtured 50-60,000 future leaders through training and exposure, over the past five years, and trained approximately 200,000 employees in futuristic digital skills. Thus, generating a competent workforce, for better global integration. The growing focus on employee well-being has also led to a flexible and hybrid work environment and remote work policies. With the pandemic changing the work model, hiring has become location independent to reap the benefits of increased productivity and reduced costs.

Innovation and rapidly changing ecosystems
Our survey indicates that 43% of CCGs consider technical and process complexity, as well as siled automation, to be their biggest challenges. To combat these and other challenges, GCCs have employed more than 300 start-ups in India, helping them generate around $15 million in revenue per year.

According to the 2021 GCC Value Proposition for India Nasscom Deloitte report, global organizations with GCC in India invested approximately USD 1.5 billion in Indian start-ups in 2019 alone, and more than 500,000 students gained skills in AI and IOT through university partnerships. Deployment of emerging technologies and use cases enabled cross-industry development. It provided better reach and integration of more in-depth information into stratified customer needs. He has also created an ecosystem of talent, start-ups and businesses, which has led to a mutually beneficial partnership and propels a culture of innovation.

Traditionally, GCCs have played the role of an “executor” with close oversight from the parent organization, dealing primarily with support functions. Over time, GCCs have been able to gain knowledge of the domain and, more importantly, the business context. Positioning itself as a transformation partner for the company, actively involved in capacity development and R&D. GCC Value Proposition Report for India 2021 shows that around 50% of GCCs are already acting as “thinkers”, “influencers” and “process owners” in their organizational hierarchy, breaking down model barriers traditional service delivery. Therefore, it is evident now that, in its evolutionary journey, GCC is truly becoming a miniaturized version of its parent organization, and in the future may even present itself as ‘sponsors’.



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