Global Capability Centers (GCCs) have come of age. They are transitioning from mere tech centers to becoming integral business partners with the enterprises. As we stand at the crossroads of the rapidly changing GCC sector, the future looks brighter than the past.
Leading enterprises across every industry are strategically harnessing their GCCs to conceptualize and materialize innovative products and services, resulting in unparalleled customer experiences, enhanced business outcomes, and a 360-degree diversification of the spectrum of their offerings. With more than 800 new GCCs expected to be set up in India in the next 5-6 years, we delve into the key trends shaping the sector in 2024.
GCCs as ‘digital twins’ of the headquarters
One of the defining trends for 2024 is the evolution of GCCs into dynamic "digital twins" of their headquarters, seamlessly mirroring all functions and operations. Operating as a real-time replica of the headquarters, GCCs will seamlessly integrate digital operations and processes, fostering instantaneous collaboration, synchronized decision-making, and a unified organizational structure. Leaders within this space will leverage advanced technologies, data analytics, and digital tools to ensure the seamless alignment of the working dynamics, decision-making processes, and overall ethos of the headquarters with the GCC.
Enterprises will implement cross-cultural training programs and invest into skill development initiatives in order to enhance collaboration, fostering operational synergy between entities. Fostering a cohesive organizational culture based on shared values, mission, and vision, GCCs and headquarters will embrace a "one enterprise, one culture" paradigm.
Indian GCC leaders at a global level
2024 will be the year when Indian talent catapults to the forefront of global leadership, with over 60 CIOs and SVPs from Indian GCCs rising to prominent C-suite positions in some of the world's most influential multinational corporations.
As of today, India-based GCCs boast a workforce of over 5000 professionals holding global roles, with a projected expansion to reach 30,000 by the year 2030. As an increasing number of multinational companies transition significant portions of their functions and operations to GCCs, India-based GCC leaders were elevated to global leadership positions, directing their functions at an international level.
This one-in-a-box style of leadership will put India’s GCC leaders at the forefront, overseeing core technology functions along with managing various business functions like finance, procurement, HR, etc., and several centers of excellence, all from India. 2024 will be the year when the expertise and leadership prowess of India-based GCC leaders is recognized and harnessed by multinational corporations, placing them at the helm of crucial international operations.
Collaborating with startups to power innovation
In another highly anticipated trend, GCCs will forge strategic alliances with the next generation of agile startups, harnessing their disruptive energy to unlock a new wave of corporate innovation.
With access to the third largest startup ecosystem in the world, functional heads will examine different avenues through which startups can act as key tools to enable them in achieving defined business objectives. This symbiotic alliance between cutting-edge startups and GCCs will drive groundbreaking advancements across industries, blurring the lines between established corporations and nimble disruptors. Collaborating with startups will enable GCCs to combine external viewpoints with in-depth industry expertise, facilitating accelerated innovation for enterprises and enhanced scalability for startups. In turn, this partnership with GCCs will empower startups to validate their solutions in unexplored markets, shape products with guidance from industry experts, refine market strategies, and gain a comprehensive understanding of larger corporate entities and customer dynamics. Together, GCCs and startups will form a dynamic ecosystem that combines entrepreneurial agility with technological prowess to drive innovation and success at an enterprise level.
GCCs become hotbeds for technological disruption
It is no secret that GCCs today evolved into thriving hubs for innovation in core technology. Taking this movement to its peak, 2024 will witness wide-scale technology disruption as GCCs wield the power of GenAI, data analytics, and automation to forge a future paved with intelligent chatbots, streamlined vendor portals, and multiple other applications.
GenAI will lead this movement as the technology garnering the highest adoption and investment, with as many as 90% of GCCs planning to explore its use cases. Enterprises will successfully use their GCCs to build proof of concepts for new products and services leveraging GenAI to achieve enhanced efficiency, elevated quality standards, curated customer experiences, and diversification of products and services.
Innovative GCCs will work towards delivering a ‘super-app’ experience to the enterprise, one that is specifically tailored to its business goals, requirements and technological needs.
The hybrid GCC-service provider model
Finally, 2024 will mark the year of the "Hybrid GCC," a powerful collaboration model that blends in-house expertise with strategic ecosystem partnerships. Outsourcing non-core tasks to such partners, GCCs will choose to optimize resource allocation and talent, directing themselves toward higher-impact activities aligned with the enterprise's core competencies.
Consequently, this will enable GCCs to prioritize crucial strategic initiatives, innovation, and core business functions, fostering an environment conducive to enterprise growth and enhancing competitiveness. Farming out non-core work will also result in increased flexibility and agility within the GCC, as ecosystem partners will adapt quickly to changing market demands or industry trends, providing the enterprise with a nimble and responsive operational framework.
This collaborative approach will create an ecosystem of excellence, fostering unparalleled efficiency, and fueling boundless innovation.
Views are personal. The author is Head of Marketing and Employer Brand, ANSR