Enterprises are increasingly looking to analytics to achieve top line impacts – think marketing and pricing analytics to support new product launches and better understand consumer behavior – and positive contributions to their bottom line through, for example, risk and fraud analytics. And they’re increasingly favoring GICs over third-party providers to support their analytics initiatives.
Why? By the nature of their engagement model, GICs are tightly integrated with the parent organization, which better enables the high levels of governance and management that are essential to deliver analytics services. GICs also have an edge as they can bundle analytics services into the business process services they deliver to provide integrated solutions.
Real-world Value Examples
Here are just a handful of examples of the types of value GICs are delivering to their parent companies.
- The India GIC of an European financial services firm helped increase product revenue by 15 percent through analytics on product positioning in the retail market
- A leading retail company’s India GIC leverages analytics to study the shopping patterns of customers in 20+ countries to predict how the market will grow or decline, understand customer loyalty patterns, etc.
- By delivering more than 50 percent of a global bank’s consumer business marketing analytics, the India GIC has enabled targeted outreach that has increased consumer card sales
- The Poland GIC of a leading U.S.-based consumer goods company implemented prescriptive analytics algorithms on its AdWords account to eliminate inefficient spend on paid searches, in turn saving substantial amounts of money.
How GICs Can Jumpstart Their Analytics Capabilities
Of course, the quality of the analytics and the impact of the resulting outcomes are directly related to the analytics talent the GIC employs.
Some GICs have chosen to upskill and reskill their existing workforce. While one has made it mandatory for select teams to undergo analytics courses and training, others have provided monetary incentives to team members who willingly opt into the training. Both approaches make GICs talent-ready to deliver analytics capabilities and face demand fluctuations. GICs are also exploring partnerships with specialist firms that can provide resources for a short duration, as needed.
Upping the Ante
To deliver even greater value, many GICs are proactively identifying areas within their operations to plug-in the analytics layer. To facilitate this, they have established analytics as a shared horizontal capability in their organization structure so that the skills and knowledge attained from one team can be leveraged by others. Further, GICs are heavily investing in training data scientists, and providing them global exposure to understand business needs better.
The days of providing just arbitrage are long gone. If your GIC wants to deliver the value your parent company needs in today’s business environment, analytics capabilities must enter into your equation.
To learn more about our view on GICs’ analytics capabilities, be sure to attend our sessions at the NASSCOM GIC Conclave (note, Everest Group is the Strategy Partner for the event) and visit us at Stall 7.