There is a do-it-yourself (DIY) movement building in the services space. At Everest Group, we continually track the number of Global In-house Center (GIC) startups, and the number is accelerating. Along with new startups, existing GICs (formerly known as “captives,” or enterprise shared-services organizations in low-cost areas) are expanding their scope. In this post, I’ll highlight four reasons why the DIY GIC movement is growing and delivering value.
- Lower Barriers to Entry
Historically, building a GIC or captive has been difficult and risky due to the substantial barriers to entry. It’s a daunting prospect to go into a country where you don’t have a presence, particularly in a developing country such as India or Eastern Europe or South America and master the complexities of local property regulations, business licensing, hiring practices, finding and identifying the right leadership, finding and hiring the necessary talent teams.