Outsourcing-Insourcing
At the forefront of innovation across products and processes, Global Capability Centers (GCCs) today are creating a competitive advantage for their global enterprises and those based in India are particularly well-positioned to accelerate to the next level. With increasing global leadership roles, these Centers are providing end-to-end support on complex work areas to deliver business impact that goes well beyond cost savings and operational improvement.
Year 2021 saw many GCCs initiate their transition to a new normal post the pandemic – one anchored on increased endorsement for the GCC model, increasing responsibilities beyond traditional workstreams, and accelerated adoption of digital technologies. However, these organizations will still face the challenges of navigating through factors such as accessing niche talent, adopting newer digital technologies, handling rising consumer expectations, increasing demand for analytics, and rapidly transforming business models driving the need to regularly recalibrate strategies.
According to Everest Group conversations with more than 100 GCCs to learn their priorities in planning for 2022 and beyond, the following five areas emerged as being critical to the success of these Centers.
Five Global Business Services (GBS) organizations are set apart by strategic skilling initiatives that significantly improve business outcomes, employee experience
Exacerbated by COVID-19, the war for talent is more intense than ever. According to Everest Group, the only way enterprises can build the necessary skill base to remain competitive is to realign employee skills with emerging business needs and provide employees with opportunities for personal growth. Easier said than done, but Everest Group has identified five best-in-class Global Business Services (GBS) organizations* that are leading the way.
In its newly published report, “Skilling Strategies for GBS Organizations—Pinnacle Model® Analysis 2021,” Everest Group examines 40 GBS organizations and of those identifies five Pinnacle GBS™ organizations—those best-in-class entities that are achieving superior outcomes because of their advanced skilling capabilities. These Pinnacle GBS organizations have generated three times more cost savings and return on investment (ROI) through their skilling initiatives compared to other GBS organizations.
Everest Group defines skilling efforts as post-onboarding interventions focused on improving employees’ skills and competencies to better deliver existing work and/or to deliver more complex or new work. The mode of intervention can range from self-learning to classroom-based training and beyond, including job rotation and cross-functional assignments.
Pinnacle GBS organizations have been able to achieve significant business impact by effectively driving their skilling initiatives, as differentiated by capabilities and characteristics such as the following:
Among those GBS organizations that track cost reduction impacts of skilling initiatives, the contrast among outcomes is significant:
“The firms we’ve identified as Pinnacle GBS organizations have created unique positions and developed scaled skilling programs to help the overall enterprise. They are developing their GBS organizations into global talent hubs,” said Sakshi Garg, vice president at Everest Group. “In the current Pinnacle Model analysis, we look at skilling strategies that GBS organizations have adopted and highlight those organizations that have achieved superior business outcomes. The journeys of these best-of-the-best companies provide insights into the key enablers needed to achieve desired outcomes and point to the investments required for the greatest speed to impact. Whether companies want to make incremental changes or achieve major transformations, Pinnacle GBS organizations exemplify the way to success.”
***Download a complimentary abstract of the report here.***
About Everest Group
Everest Group is a research firm focused on strategic IT, business services, engineering services, and sourcing. Our clients include leading global companies, service providers, and investors. Clients use our services to guide their journeys to achieve heightened operational and financial performance, accelerated value delivery, and high-impact business outcomes. Details and in-depth content are available at http://www.everestgrp.com
*Note: For the purposes of this report, Everest Group uses the term GBS to include Shared Services Centers (SSCs), Global In-house Centers (GICs) and Global Capability Centers (GCCs), although distinctions in these business models can be made.
Global Business Services
VIEW THE REPORT PAGE
Automotive ER&D
VIEW THE REPORT PAGE
©2023 Everest Global, Inc. Privacy Notice Terms of Use Do Not Sell My Information
"*" indicates required fields