Mid and small-sized enterprises adopting GCC model, says study
The white paper of Alvarez & Marsal notes that GCC can now be a operated as a micro model
Global capability centres (GCCs) have become the key focus area for the technology sector and today enterprises regardless of their size can harness this potential, according to a white paper.
Consulting firm Alvarez & Marsal in its white paper Global Capability Centers: The Great Force Multiplier, noted, “An exciting recent change in the GCC arena is surmounting the traditional notion that they are only for large-scale operations.
For instance, of the more than 1,600 GCCs in India, nearly 25% have been set up by small and mid-size businesses and startups with a headcount of fewer than 50 people. These are called micro GCCs.
The white paper notes that extraordinary growth over the past two or three decades has led to the emergence of an entire ecosystem of specialised service providers (real estate, IT, recruitment, incubators).
This growth, coupled with democratisation of technology (cloud, data) as well as startup ecosystem (engineers, data scientists, entrepreneurs, digital natives), has enabled the supply side to be operationalised faster and be more nimble while catering to specialised functions.
“What this means is organisations of all stripes today can choose to open a GCC for a single function and expand based on need,” it noted.
GCCs are the fastest-growing segment with a current market size estimated at close to $90 billion and India accounts for over 50% of the share.
According to the white paper, as GCCs evolve beyond cost arbitrage, companies are increasingly shifting from outsourcing to insourcing to drive greater control, efficiency, and strategic value. With over 5,400 in-house GCC/GBS centers globally and over 3,000 in India alone, enterprises are leveraging insourcing to build significant strategic advantage.
The broader value of GCCs lies in their ability to transform business models, enhance service delivery, and strengthen risk mitigation. Also ten years ago, a decision to invest in a GCC involved a 12-18-month time frame to operationalise and a 24-30-month time frame to truly ramp up. Today that pace has changed to six months for the setup and 12-18 months for ramp-up, the white paper noted.
Edited by Affirunisa Kankudti