STRATEGIC SHIFTS:
5 TRENDS
REDEFINING
GCCs IN
2024
5 Trends Redefining GCCs | 2024
Introduction
For Global Capability Centers (GCCs) in India and across the world, 2024 will
be a year of infinite opportunity, where the distance between the GCC and
the headquarters will continue to diminish considerably.
The focus will remain on nurturing talent and technology, along with
advancing capabilities in fields like Generative AI, Cybersecurity, AI/ML, and
Cloud Computing. Regardless of their size or industry, companies will persist
in establishing GCCs, resulting in the rapid standardization of setup and op-
erational practices.
Leading enterprises across every industry will strategically harness their
GCCs to conceptualize and materialize innovative products and services,
resulting in enhanced operational efficiency, superior quality standards,
unparalleled customer experiences, and a 360 degree diversification of the
spectrum of their offerings.
At ANSR, as we work towards setting up 25 new GCCs for some of the
biggest and oldest global companies across home improvement, aviation,
retail, and fintech, here are our insights on upcoming trends and prospects
for 2024.
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5 Trends Redefining GCCs | 2024
GCCs Become Twins of HQs
In the last decade, we’ve witnessed GCCs gradually move up the
value-creation chain, transitioning into pivotal roles where they actively
contribute to technological advancements, innovation, and decision-making
processes. They have moved beyond simply implementing technology
solutions to actively influencing and shaping business strategies.
In 2024, an emerging trend within GCCs is the evolution towards becoming
‘digital twins’ of their headquarters. This transformation signifies a paradigm
shift where GCCs seamlessly replicate and integrate all aspects, functions,
and operations of the headquarters, establishing a mirror-like digital
representation.
The trend highlights the growing convergence between GCCs and
headquarters, eradicating the traditional gap and fostering an interconnected
and synchronized ecosystem between these entities. As a digital twin, the
GCC mirrors the digital footprint and operations of the headquarters,
ensuring real-time synchronization, collaboration, and operational
coherence, ultimately enhancing efficiency and innovation across the
organization.
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. By championing a unified organizational culture grounded in
shared core values, mission, and vision, GCCs and headquarters are poised
to seamlessly adopt a "one enterprise, one culture" paradigm.
A multitude of enterprises will strategically execute cross-cultural training
programs to harmonize employee mindsets across diverse locations.
Simultaneously, investments in training initiatives will be directed toward
cultivating skills and capabilities that facilitate seamless collaboration,
fostering operational synergy between entities.
The metamorphosis of GCCs into integral components of enterprises will
culminate in 2024 with the complete integration of GCCs as twins of their
respective headquarters. GCCs and headquarters will operate as a single
entity, setting a new standard for global collaboration and operational
cohesion.
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5 Trends Redefining GCCs | 2024
The Year of Indian Leadership,
Globally
In 2024, the world will see some of the biggest multinational enterprises
across a diverse range of industries being led by global leaders from India.
According to various industry reports, 2024 will see as many as 60+ CIOs
and SVP leaders that are based in India from various GCCs, spearheading
their functions at a global level. Currently, the 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.
Take the example of Ashish Grover, who joined Chilean fashion retailer
Falabella in 2018 to lead the Technology Development Centre in India, and
was promoted to the position of global CIO within 3 years. Today, Grover
plays a pivotal role in leading Falabella Group at the international stage,
overseeing strategic technology and operational matters across its diverse
technology ecosystem.
As a growing number of enterprises strategically transition significant portions
of their functions and operations to GCCs, India-based GCC leaders have
effortlessly ascended to global leadership positions, directing their functions
at an international level. These leaders not only oversee core technology
functions, but also manage various business functions, such as finance,
procurement, HR, etc., and several centers of excellence, all from India.
This “one-in-a-box” style of leadership, where a single Indian leader has the
front seat in a cockpit, and is directing every aspect of a functionality across
the globe is going to be one of 2024’s top GCC trends.
Qualities that make India's GCC leaders shine globally
Functional Cultural Innovation
Leadership Championship Mindset
Stakeholder Clear Strategic
Management Communication Orientation
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5 Trends Redefining GCCs | 2024
Collaborating With Startups to Power
Corporate Innovation
In the past, established corporations such as Target, Cisco and Walmart have
demonstrated notable success through their implementation of startup
discovery and accelerator programs. Companies like AB InBev have
successfully driven 25+ projects, creating $15 Mn+ in business impact.
In 2024, GCCs will actively seek out and cultivate alliances with the next
generation of entrepreneurial startups to position themselves at the forefront
of cutting-edge advancements in their respective industries. This strategic
alliance will play a pivotal role in fostering corporate innovation by leveraging
the synergies between established industry leaders and the agility of
young startups.
Visionaries within every field understand that corporate innovation is not a
luxury, but an indispensable necessity. Keeping this in mind, functional heads
will examine different avenues through which startups can act as key tools to
enable them in achieving defined business objectives. An additional
advantage available to GCCs set up in India will be the access to the 3rd
largest startup ecosystem in the world, with 1,12,718 DPIIT-recognized
startups as of December 2023.
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5 Trends Redefining GCCs | 2024
This symbiotic relationship between GCCs and startups is poised for
success because it offers multiple benefits to both sides. By partnering with
startups, GCCs combine external viewpoints with in-depth industry
expertise, facilitating accelerated innovation for enterprises and enhanced
scalability for startups. Access to state-of-the-art technology infrastructure
and a nimble go-to-market strategy enables GCCs to rapidly deploy
innovations and contribute to the overall growth and competitiveness of
their enterprise.
For startups, partnering with GCCs enables them to validate their solutions
in untapped markets, craft products with insights from industry experts,
refine market strategies, and gain a deeper 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.
GCC-Startup Collaboration
BENEFITS FOR
STARTUPS
Access to global market
Corporate mentorship
Enterprise funding
Massive digital infrastructure
Customer data and insights
BENEFITS FOR
GCCs
Access to technology, ideas,
and innovation
Competitive cost of talent
Speed and agility
Testing opportunity and market
validation
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5 Trends Redefining GCCs | 2024
GCCs Become the Hotbeds for New
and Disruptive Technology
GCCs today serve as thriving hubs for innovation in core technology. They
have created fertile grounds where inventive concepts are tested and refined
in an environment dedicated to implementing new-age technology
seamlessly. Within this environment, ideas for the implementation of these
technologies can be systematically conceived, rigorously tested, and
seamlessly integrated into the overarching strategic framework of
the enterprise.
In 2024, GCCs will play a pivotal role in enabling a wide range of critical
business goals, leveraging Generative AI, machine learning, data analytics,
augmented reality, robotic process automation and many other such
disruptive technologies to develop vendor portals, intelligent chatbots,
CRM tools, and other similar applications.
~90% GCCs Plan to Harness Potential of Gen AI/ML/
Cognitive Computing Technologies in the Next 2-3 Years
Future Digital Investments by GCCs
0% 20% 40% 60% 80% 100%
Gen AI/ML/Cognitive Computing
Big Data Analytics
Cloud Computing
AR/VR
Enterprise Mobility
Internet of Things (IoT)
Cybersecurity
Robotic Process Automation (RPA)
Blockchain
ERP Upgrade
*From our ANSR Leadership Forum Survey where we received insights from 100+
GCC leaders
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5 Trends Redefining GCCs | 2024
Generative AI 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 Generative AI to
achieve enhanced operational efficiency, elevated quality standards, curated
customer experiences, and diversification of products and services.
From creating diverse datasets for training and validating machine learning
models, to analyzing vast amounts of textual data to identify market trends &
consumer sentiments, the widespread application of Generative AI will open
up a world of endless possibilities, with GCCs enabling this revolution.
Innovative GCCs will work towards delivering a ‘SuperApp’ experience to the
enterprise, one that is specifically tailored to its business goals, requirements
and technological needs.
CASE IN POINT
The Bengaluru based India team for one of USA’s leading apparel retailers
houses critical roles across multiple functions including technology, analytics,
merchandising, finance, marketing and digital operations. Using Generative AI
tools like Adobe Firefly and Jasper.ai, their marketing team was able to
produce various graphic and content assets at a significantly reduced cost
and 80% faster creation time. Going a step further, the merchandising team
leveraged intelligent categorization and tagging of products on the website,
thus eliminating the need to hire additional talent.
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5 Trends Redefining GCCs | 2024
Rise of the Hybrid GCC-Service
Provider Model
In 2024, the concept of 'Hybrid GCC' will transition from an emerging trend
to a mainstream strategy, leveraging the best of GCCs and external
partnerships for enhanced innovation and operational efficiency.
Strategically delegating non-core work to service providers will enable GCCs
to allocate their resources and talent more efficiently, redirecting them
toward higher-impact tasks that are aligned directly to the enterprise's core
competencies. In turn, GCCs will be able to focus on pivotal strategic
initiatives, innovation, and fundamental business functions, thereby nurturing
the conditions necessary for enterprise growth and bolstering
competitiveness. This collaborative strategy will enable the GCCs to fortify
their position in the corporate landscape, ensuring a streamlined and
results-driven pursuit of key organizational objectives.
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 flexibility is crucial in today's dynamic
business environment, where rapid adaptation and innovation are key drivers
of success.
Delegating ancillary and supporting tasks to service providers will also help
GCCs in their pursuit of diversification and entry into new practice areas and
markets. Furthermore, GCCs will gain the capacity to redirect their prime
assets — time, talent, and financial capital — towards the exploration and
strategic investment in emerging markets and innovative business domains
harmonizing with their overarching long-term growth plans.
In 2024, the strategic external-service provision of ancillary and
supplementary functions will enable GCCs to allocate resources more
efficiently, focusing on core competencies, strategic initiatives, and
innovation, consequently fostering conditions for enterprise growth and
competitiveness. In its simplest form, the hybrid model mantra will be – “use
employees where you should use employees and use partners where you
need to use partners.”
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Conclusion
Looking forward to 2024, GCCs are poised to reshape the IT landscape in
India, experiencing accelerated growth and transformation.
As GCCs mature and move up the value chain, they will transition from
technology and business hubs to integrated business outcome
accelerators delivering exceptional value. There will be an ongoing
commitment to talent development, with a specific focus on cultivating
advanced capabilities in areas such as Gen AI, Cybersecurity, AI/ML, and
Cloud, reflecting a commitment to continuous growth.
Companies across every industry, regardless of their size, will continue to
establish GCCs, leading to the swift standardization and productization of
GCC setup and operational practices.
Enterprises will look for partners who can deliver a ‘GCC SuperApp’ with
tailored offerings that will ensure modularity and predictable outcomes.
This will empower enterprises to navigate the evolving business landscape
efficiently and with minimal risk, consequently fostering increased adoption
of Global Capability Centers (GCCs) and surpassing the growth seen in
FY 23.
About ANSR
ANSR is the market leader in helping leading global
organisations accelerate digital transformation and technology
innovation through Global Capability Centers (GCCs). For years,
companies cutting across industries and markets have relied on
ANSR’s expertise to build high performance, technology,
business and innovation teams across India and Poland. Since
its inception, ANSR has established over 100 GCCs aggregating
to over 100k enterprise talent with over $1.6B in investment and
using over 10M sqft of workspace.
Contact Us
marketing@ansr.com | www.ansr.com
