GCCs: Dinosaurs or Unicorns?
Are GCCs slow moving dinosaurs or fast paced unicorns? A high-powered group of industry leaders got together to debate this & other contentious questions related to the Global Capability Center ecosystem. Rajiv Gupta, Managing Director & Senior Partner who leads BCG India’s TMT practice, supported by Snehil Gambhir (Partner and Director, TMT) chaired the closed-door session aimed at developing a nuanced answer to these questions, and led to three key takeaways.
- All said and done, is cost savings the real reason only for a GCC? Cost is a necessary 'seed capital' while setting up a GCC beyond which it has limited importance. The conversation then shifts to generating business value & scale.
- Is it indeed all about scale and ‘FTEs’? Indian GCCs are synonymous with scale but this does not mean that 'Number of FTEs' is the objective function. Scale is a by-product of Indian GCCs achieving a higher 'degree of penetration' enabled by the availability of cutting-edge talent that can support a wide array of business functions.
- Is there anything innovative about a GCC beyond scale and cost? GCCs continue to drive the enterprise's innovation agenda. Indian GCCs with their outcome-focused methods, with a mindset that has pushed the boundaries of innovation in a manner that is distinct from conventional global definitions.