Category: Shared Services/Global In-house Centers

Metaverse Trends that Can Redefine the Hybrid Work Model | Blog

The metaverse offers promise to reinvent hybrid models by balancing remote work with social connections formed between avatar versions of employees in a virtual world. This emerging model holds the potential to enhance team collaboration, accelerate learning, and spark creativity. Learn the latest metaverse trends to watch in this blog.

Hybrid work environments – the answer to many of the issues of remote working experienced during the pandemic – have increasingly been adopted by global enterprises in all industries to offer work flexibility along with in-person collaboration employees desire.

Now the metaverse can take hybrid work into its next evolution – bringing together the advantages of the work-from-home environment with the social connections, teamwork, and fun of the virtual world.

In this exciting next phase, employees will work in a persistent immersive mega virtual smart space akin to a universe where people have seamless digital experiences that can extend to the real world.

Employees with 3D avatars of themselves will inhabit virtual office spaces to meet and collaborate with their teams remotely without feeling distant. Many metaverse solutions for the workplace, like Microsoft Mesh, NextMeet, and Meta’s Horizon Workrooms are already gaining popularity for work meetings.

Metaverse advantages in a hybrid work model

When operating in the metaverse, organizations reap all the benefits of remote work, including reduced operational costs for real estate and facility maintenance. Here are some of the other key benefits:

  • Enhanced learning and development – Through virtual learning, the metaverse can enable better collaboration, enhance learning outcomes, and improve employee training
  • Improved attrition and talent – The metaverse can reverse the rising attrition rates many companies experience when returning to in-office work by employees who leave because they prefer remote work. With metaverse, companies can differentiate their employee value proposition around collaboration and relaxation activities, resulting in better retention.

Organizations can deploy metaverse applications throughout the employee lifecycle, including attracting talent by distinguishing themselves, developing skills through virtual training, and engaging employees so they stay with the company

  • Better collaboration across geographies – As metaverse adoption increases, organizations will be able to further distribute employees geographically. Tasks like design work, planning, and strategizing that require teamwork and are difficult to perform in regular virtual modes can be done more effectively with creative virtual tools within the metaverse. This will enable increased talent sourcing for strategic roles from tier-2 and tier-3 cities as the metaverse diminishes the barriers to effective collaboration across geographies
  • Greater work-life boundaries – Metaverse can overcome remote workers’ top concerns of feeling isolated, having limited social interactions with coworkers, and lacking boundaries between work and personal time.

 A fully immersive metaverse environment functions exactly like an office space where employees can have the impromptu interactions needed to build a shared organizational culture. When working in the metaverse, employees work in different environments than their homes, providing a barrier between jobs and leisure

Challenges to the metaverse in hybrid work

The metaverse will have some challenges to overcome and these include:

  • Higher initial investment – Operating within the metaverse requires a high initial investment for developing metaverse platforms and procuring hardware. The low maturity of technology and hardware required is an obstacle to large-scale commercial adoption
  • Employee stress – Working in the metaverse for long hours is strenuous for employees who can feel fatigued and lose their sense of reality. Another employee concern is digital privacy and security
  • Graphic limitations – The metaverse technology available today only supports cartoonish avatars that do not look realistic or show human emotions, significantly limiting the effective expression of thoughts and non-verbal cues

Metaverse outlook

Most organizations are following a wait-and-watch approach when formulating internal and external metaverse strategies as most metaverse solutions offered today are in their initial development stages.

Widespread metaverse platform adoption is likely to take a few years because the infrastructure, applications, and computing power requirements for a very immersive metaverse experience are not yet available on a deployable scale. However, the metaverse offers an enticing value proposition that should be closely watched.

To discuss metaverse trends and their impact on the hybrid work model, contact [email protected], [email protected], and [email protected].

You can also view our LinkedIn Live event, Trust and Safety (T&S) in the Metaverse | With Great Power Comes Great Responsibility.

The Top GBS Employers™ in India, The Philippines, and Poland – Discover Why They Are the Top Global Business Services Companies for Talent | Blog

Everest Group’s Top GBS Employers™ across India, Poland, and the Philippines report illustrates the top global business services companies selected for best work environment and job satisfaction rating by employees. Read on to discover what the workforce looks for when choosing an employer and view the complete list.

 See the Report

As the battle to find the right talent and skillsets resumes, GBS employers must build an exemplary brand to stand out among their peers to attract and retain top talent. The talent shortage worldwide is here for the foreseeable future and is a constraint against growth goals. Developing and implementing a talent strategy should be at the top of any employer’s priority list. One tactic that many are turning to is closely tracking and honing their brand, or how talent perceives them in their local market.

Developing a solid brand perception will not only address the talent shortage challenge but also help draw in a strong and resilient workforce, so organizations will survive uncertainty and thrive in intensely competitive environments. The top global business services companies are incorporating the key components and top requirements that talent are gravitating towards – work environment, compensation, career development, and diversity – and are critical in building employer brand perceptions and meeting evolving workforce expectations.

The top global business services companies selected across India, The Philippines, and Poland

Everest Group analyzed the employer brand perceptions of 200+ leading GBS organizations across India, Poland, and the Philippines to discover what a top employer brand perception encompasses, view the full report. The study examined multiple dimensions, including compensation, career progression, senior management, work-life balance, culture and values, and diversity.

This first-of-its-kind study also analyzes the performance of each of the top global business services companies in the local talent markets based on attrition rates, joiner-exit ratio, and overall employee satisfaction ratings.

Finally, we assessed what top global business services companies are doing to differentiate themselves in talent markets, targeting the most desired themes from talent: work environment, compensation, career development, and diversity.

Why GBS organizations need this information today

Workforce expectations have transformed dramatically over the past few years, and organizations have to evolve their employer brands to meet those expectations. The pandemic brought about the work-from-home (WFH) era, dispelling many negative notions around WFH, and set a standard of work-life balance, flexibility, and autonomy that employers must deliver. Our research shows that over half of today’s organizations expect over 40% of their employees to continue working from home or in a hybrid style over the next two years or so.

More and more employees today are also choosing to work for companies that not only have sustainability goals and strong culture and values but adhere to diversity, equity, inclusion, and belonging (DEIB) practices, which ensures employees have equal opportunities and ultimately feel more valued.

And at the top of the list, employees want to work for organizations that offer career paths, opportunities for upskilling, and fair compensation.

The Top GBS Employers™ rankings provide an outside-in proxy on how prospective candidates pursuing tech and ops careers perceive employer companies – helping firms baseline their employee value propositions (EVP) effectiveness vs. their immediate peers.

How are the top global business services companies being ranked?

Recent employer perception studies have been too broad, with no specific view capturing tech talent’s concerns. This analysis is based on publicly available information, including Glassdoor, Indeed, and LinkedIn, and the latest feedback capturing prospective employees’ perceptions about top GBS organizations. The rankings from the report provide a comparative snapshot of leading firms’ market perceptions among the tech and ops workforce. We ranked each GBS employer on employee satisfaction grade, compensation and benefits, work environment, career opportunities, and diversity and inclusion focus and investment.

The top ten across India, the Philippines, and Poland

By assessing the ratings and feedback from popular public sites and critical sources for employees conducting employer research, we narrowed down the top ten in India, the Philippines, and Poland:

  • Across India, the overall top GBS employers are Google, Mondelez, Microsoft, Bank of America, SAP, JPMC, P&G, Target, American Express, and Novartis
  • In the Philippines, the overall top GBS employers are Henkel, SAP, JPMC, Telstra, P&G, SunLife, Wells Fargo, American Express, Chevron, and 3M
  • And in Poland, we saw Mondelez, Microsoft, SAP, Standard Chartered, Google, Cisco, Bayer, AstraZeneca, ING Group, and P&G come through as the top GBS employers

See the full report for a complete view into the rankings in the different regions.

Key takeaways from the research

Throughout every market assessed, it’s clear that compensation, work environment, and career development are among the top sought-after aspects when choosing a new employer and have the most impact on employer brand perception.

Employers with the highest rankings offer relatively high entry-level compensations and robust training, set benchmarks to allow for pay increases, perform salary corrections, and have opportunities for fast-track promotions, especially at lower experience levels. High-ranking companies also offer flexibility and options for remote work and the chance to work across teams for cross-functional exposure. Other perks among the highest ranked employers are opportunities to work on the latest tech stacks and develop techno-functional and behavioral skills, along with good 401K matching and health insurance options, market-competitive benefits, and decent paid time off.

Employers that incorporate these practices will significantly increase their overall employer brand perception and discover more success in finding and retaining talent.

Top global business services companies can also leverage Everest Group’s Talent Performance Framework to optimize their talent management strategies and build future-proof talent models.

Exhibit one: Everest Group’s Talent Performance Framework

Picture1 4

To learn more about Everest Group’s Top GBS Employers or to discuss the Talent Performance Framework, reach out to [email protected] or Contact us.

Also, join us for our Conversations with Leaders LinkedIn Live series, a part of Everest Group’s GBS Leadership Exchange, Episode 3 | Who Are the Top GBS Employers?, featuring GBS executives who have shown significant leadership and innovation in GBS. In this session, Rohitashwa Aggarwal, VP of GBS Research and Advisory at Everest Group, and Shweta Mohanty, VP and Head of HR for SAP, India, will discuss the Top GBS Employers, and what they are doing to set themselves apart.

Six Highlights from the 2022 NASSCOM GCC Conclave to Watch | Blog

India’s continued position as a leading destination for Global Capacity Centers (GCCs) was among the key themes emerging from the first hybrid National Association of Software and Service Companies (NASSCOM) GCC Conclave on June 29-30 in Hyderabad. To learn the top priorities among GCC leaders, read on for takeaways from our experts who attended the mega event. 

While we had doubts over GCC participation in the first-ever hybrid conclave since 2019, the event was a huge success for GCC leaders who enjoyed making and renewing contacts, exchanging learnings and best practices, and sharing fond memories of past gatherings.

As the strategic partner for NASSCOM, Everest Group is pleased to share these six key takeaways from the GCC Conclave, themed Leaning in for Impact in the Networked World:

  1. Continued endorsement of India as a leading GCC location

India remains at the center of the offshore/nearshore global delivery portfolio across most enterprises. Most GCC leaders expect higher growth from the India centers than other locations. Some have plans to double their India headcount in the next two to four years.

  1. Return to office (location) is a top priority for GCC leaders

Two out of three GCC leaders highlighted their efforts to bring employees back to work locations as part of the hybrid model. With location flexibility emerging as a strong value proposition for employees, balancing employee preferences and organization goals (e.g., building workplace culture) is becoming critical.

  1. Increased endorsement for the GCC model has positively impacted GCCs’ influence across the enterprise; however only in pockets

GCC influence across the organization has increased post-pandemic but only in pockets. Building strong adjacencies with core enterprise priorities goes beyond scaling high-skill capabilities in the GCC. Many GCC leaders still have concerns about managing cost competitiveness with third-party providers, securing buy-in for expanding capabilities, etc. To top this, several enterprises are restructuring, which is also impacting GCC growth.

  1. The next wave of growth is likely to be anchored around centralization (again)

The “scale-optimize-centralize” cycle is not new for GCCs. Across different stages of evolution, GCCs have experienced this cycle and have also come out successfully post internal restructuring initiatives (e.g., banks centralizing third-party risk compliance that supports different businesses).

Over the last two years, many GCCs expanded the breadth and depth of services offered (with insourcing also being a factor). Many leaders are now looking at the next wave of centralizing capabilities. However, this centralization wave will likely be more borderless because the remote model has helped address location dependency constraints. In that context, the role of India-based GCCs as an “orchestrator of services” (see next point) across the global delivery network will likely increase. Click here to check out Everest Group’s thought leadership content around the borderless GCC/GBS model.

  1. Mature GCCs are betting big on services orchestration

As GCCs expand ownership, a wide array of responsibilities exist. Mature GCCs are already orchestrating services – coordinating with in-house teams, third-party vendors, start-ups, etc. – and are owning end-to-end accountability for services in scope. See the exhibit below for an example of GCC ownership, from skills to processes to platforms, with distinct needs from talent and operating model perspectives.

 

NASSCOM GCC Event blog table

Exhibit 1: The spectrum of GCC ownership (tech example)

  1. The GCC journey is akin to a Snakes and Ladders game!

Factors such as increased sponsorship and niche talent availability can help accelerate the journey towards being recognized as an entity delivering competitive advantage for the global enterprise. At the same time, conditions like macroeconomic impacts (e.g., the Ukraine war) and spinning off divisions at the enterprise level could deter GCC’s progress.

Several leaders enthusiastically played the GBS 2022 Snake and Ladders game, developed by Deborah Kops and Everest Group team, at the 2022 NASSCOM GCC Conclave. The game highlights the perils and opportunities for GBS organizations as they strive to become entities delivering competitive advantage for global enterprises. Learn more about this game in our upcoming LinkedIn Live event. As one GCC leader noted, “Yes, there are several ups and downs. The key is to keep rolling the dice!” And the same can be said about the GCC journey.

SL image 1

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Discover more about Everest Group’s research on the GCC evolution.

4Cs to Successfully Attain Business Agility in GBS Organizations | Blog

Business agility has emerged among leading Global Business Services trends as a key driver for growth, innovation, and business excellence. Attaining business agility requires new ways of thinking and working. To learn more about the 4Cs (commitment, collaboration, competence, and construct) that can help GBS organizations rapidly respond to market changes and emerging opportunities, read on.

Looking at the latest Global Business Services trends, business agility is a key lever driving cost optimization, improved operational efficiency, accelerated digital transformation, higher revenue impact, improved customer experience, and other positive business impacts. Mature GBS organizations are increasingly reaping the benefits of agility, often reacting, and adapting to changes and challenging situations faster than ever before.

But business agility doesn’t prioritize speed over quality. Being agile doesn’t deteriorate quality, limit documentation, or micromanage. Business agility is an organization’s ability to rapidly adapt to the market and environmental changes productively and efficiently. Organizations who think lean and embrace agility or possess a Lean-Agile mindset are proving they can overcome challenges and seize emerging opportunities quicker than their competitors.

4Cs to successfully attain business agility in GBS organizations

Through our research with mature GBS organizations, Everest Group has identified 4Cs to attain business agility success as shown below:

Picture1 1

Exhibit 1: Everest Group

GBS organizations need to possess the following characteristics to reach business agility:

  • Commitment
    • Change the mindset and increase risk tolerance (over 50% of companies believe resistance to change impedes their progress towards achieving complete agility)
    • Evolve the organizational culture to scale the agile model
  • Competence
    • Focus on talent management by taking an empathy-based approach to leadership and hiring team players
    • Invest in roles for the future and nurture specialist talent
  • Collaboration
    • Leverage internal social tools to drive transparent collaboration across the organization
  • Construct
  • Ensure autonomy and evolve the operating model to avoid getting stuck in existing models and being unable to innovate and realize the true potential of agility
  • Establish open communication channels and/or build a bottom-up communication channel

A shift to agile work

With enterprise expectations evolving and GBS organizations becoming strategic business partners driving higher value and impact, adopting agile work methods has become an urgent need.

Traditional work ways have visibly shifted to an agile mindset. Let’s look at how the 4Cs translate to the new agile approaches as illustrated below:

Graph 2

Exhibit 2: Everest Group

Business agility – the path forward for GBS centers

With enterprises viewing GBS as the hubs for innovation, digital transformation, and change, integrating agile working methods will help GBS centers deliver value-based outcomes productively and efficiently. This also will enable different GBS centers to operate as a cohesive network, benefiting from each other’s best practices. In today’s rapidly changing times, business agility is the path forward for GBS organizations.

To learn about how GBS centers are implementing agility across their operations, read our report 4Cs of Success to Attain Business Agility in GBS Organizations. Please reach out to Aditi Bansal ([email protected]) and/or Meghna Thomas ([email protected]) to share your experiences or discuss Global Business Services trends.

To find out if your GBS is organization evolving to create superior value, take our GBS Evolution Personas Framework assessment.

Will Ukraine’s Invasion Have a Domino Effect on Other Geopolitical Equations? | Blog

The Russian military action in Ukraine has already significantly impacted thousands of services jobs in this region, but the potential reverberations to nearshore European countries and the larger global services industry could be far more damaging – making it essential to integrate geopolitical risk management in your decision-making now. Learn the immediate steps to protect against risks during these increasingly unpredictable times as we continue our expert analysis on this critical issue.   

In our recent blog, we wrote about service delivery risk in Ukraine. Since Russian forces invaded Ukraine on Feb. 24, almost 150 companies operating out of the region supporting IT, Engineering, and Business Process services have ceased or at least suspended operations in the region, impacting thousands of jobs.

But the crisis is not limited to Ukraine, Russia, or even Belarus. Several Eastern European countries such as Poland, Hungary, Slovakia, and Romania are directly impacted. These neighboring countries are taking in refugees, providing financial aid, declaring states of emergency, preparing for military confrontation, and most importantly, witnessing a significant drop in employee morale as individuals and families experience anxiety over the recent events.

These nearshore European countries – Poland, Hungary, Romania, Slovakia, Czech Republic, Latvia, Lithuania, and Estonia – collectively host nearly ~1.5 million Full-time Equivalents (FTEs) in global services delivery, accounting for 15-18% of the total global services workforce worldwide.

We are advising our clients that significantly rely on Central Eastern Europe to stress test their Business Continuity Planning (BCP) strategies at the same time hoping that the ongoing conflict doesn’t escalate to the neighboring countries.

But while we hope for the best, we must prepare for the worst. One of the lessons from this crisis is to not assume that diplomats have everything under control. The events of the past few weeks are extremely disturbing and could embolden authoritarian leaders in some of the other countries.

Below is our analysis of some of the hostile geopolitical equations globally that could impact the global services industry in the event of a major escalation in the associated countries:

  Risk scenario Likelihood Locations impacted Global services Impact

(number of centers and FTEs)

Key players with large footprint
1. Russia versus NATO High Poland, Hungary, Romania, Slovakia, Czech Republic, Latvia, Lithuania, and Estonia ~1,000 centers

1.5 million FTEs

Amazon, Coca-Cola, Deloitte, Dell, Microsoft, E&Y, Nokia, Huawei, IBM, HCL, Cognizant, Accenture
2. China versus Taiwan

Or direct US versus China

Medium-High Taiwan (directly)

China (if US imposes sanctions on China)

~400 centers

320,000 FTEs

Barclays, Citigroup, ExxonMobil, HSBC, Microsoft, Accenture, Capgemini, Tech Mahindra
3. Gulf tensions – Iran versus US and Israel Medium Mainly Iran.

Could impact Kuwait, Iraq, and Lebanon in case of escalations in the region

~100 centers Alibaba, Apple, AT&T, General Motors, Volkswagen, LG Electronics, Accenture, Genpact, IBM, HCL
4. India versus Pakistan Medium-low Locations in Northern and Western parts of India (including capital city); Northwestern region of Pakistan ~2,000 centers

3.1 million FTEs

Amazon, Bank of America, Citigroup, Ford Motors, Dell, Nestle, Microsoft, Accenture, TCS, Wipro, IBM
5. India versus China Medium-low Locations in Northern parts of India; major global services hubs in China are too far out from border regions ~2,500 centers

3.3 million FTEs

Citigroup, ExxonMobil, HSBC, Ford Motors, Nestle, Microsoft, TCS, Wipro, IBM, Capgemini, Tech Mahindra

Risk management actions to take

While we can only hope that none of the above-mentioned scenarios take place, organizations need to be well-prepared to manage the risk impacts. Everest Group advises the following:

  • Move geopolitical risk management up your enterprise agenda
    • New risks require newer risk management systems. While most global companies invoke reactive measures to the changing risk environment, they lack integrated capabilities for managing the cross-enterprise impact of geopolitical risk. Integrate geopolitical risk management into a systematic process and move risk functions beyond the formal views of governance/administration to influence your firm’s core strategy
    • Deploy refreshed risk management mechanisms and take a portfolio view of risks to better understand the implications and interdependencies
    • Empower risk management teams with access to geopolitical intelligence relevant for not just short-term, but long-term challenges and opportunities. Ensure that updated assessments and implications of geopolitical risks regularly feed into the decision-making machinery across the firm
  • Anticipate business-risk implications
    • Examine and understand potential business consequences of geopolitical risks. More often than not, geopolitical movements lead to regulatory changes (e.g., sanctions), thereby impacting corporate risk exposure, with implications for tax rates, cross-border trade, and exchange-transfer risk
    • Scan the horizon for changing sanctions and resultant changes to your third-party ecosystem
  • Rehearse and stress-test the readiness of contingency plans regularly
    • Consistently run tests of work from home and other BCP models to ensure familiarity and effectiveness (in terms of devices, connectivity, collaboration, and project management tools)
  • Strengthen digital security and ensure tech readiness
    • Cyber risks are increasingly associated with political origins, including war and terrorism. Keep a hawk-eye on potential threats related to cybersecurity and invest in strengthening network infrastructures and stronger encryption algorithms to insulate against potential cyberattacks
    • Be aware that historical evidence suggests that cyberattacks are not restricted to just the conflicted zones and often spill over, causing collateral damage in neighboring countries and also putting them at risk
  • Maximize delivery portfolio resiliency
    • Diversification is becoming mission-critical. Instead of operating large hubs in one or two locations, look to dip toes in multiple talent pools across locations (while simultaneously assessing fragmentation risks)
    • Reassess your Global Business Services (GBS)/shared services and vendor portfolio to ensure enough overlap and redundancy across both operational and management processes
    • Invest in process simplification and re-design to reduce hand-offs, decision-points, and dependence on people
  • Increase BCP-led talent management
    • Cross-skill/cross-train the workforce across centers in critical processes to enhance BCP and resilience, and manage workloads in case of a country/center work stoppage scenario
    • Maintain select forms of dispersed/distributed workforce (not co-located with delivery centers). Examples include remote working models or “pods,” contingent and gig workforces

The nature of geopolitical risk is changing and becoming increasingly unpredictable. It is now imperative for organizations to integrate geopolitical risk management in decision-making processes across the organization.

If you have questions or would like to discuss this topic, please feel free to reach out to us at [email protected], [email protected], or [email protected].

As we continue to watch the events in Ukraine, you can access our  resource center where you’ll find our consolidated coverage of this evolving situation, or watch our LinkedIn Live event, “How to Manage the Ukraine-Russia Impact on Service Delivery.

Five Actions GBS Organizations Must Take to Address the Global Business Services Trends and Challenges of 2022 | Blog

2021 was a milestone year for Global Business Services (GBS) with most enterprises reporting the model exceeded expectations for global business services solutions and delivery. GBS provided the needed strength and agility to seamlessly supply value without disruption from the pandemic. GBS organizations also saw higher Net Promoter Scores (NPS), a metric showing customer satisfaction and loyalty, with an increase of 10-25% in 2020 and 2021, and established higher stakeholder engagement and service delivery expansion.

With this steady stride set in motion, GBS organizations are now looking to approach 2022 with a renewed focus on increasing the value of delivering global business service solutions. They are striving to boost proficiency, digitalization, and customer-centricity while taking steps to adapt to current challenges like inflation, a talent deficit, higher costs, and the ripples set in motion from the pandemic.

So, what should GBS organizations focus on now to establish and meet expectations for 2022 and beyond?

Challenges Abound – A Global Talent Shortage Compounded by Rising Costs

Based on our report, It’s Not a Talent War; It’s a New Reality – 2022 Key Issues in Global Sourcing, GBS headcount growth is expected to be steady, with average growth moving from 4-5% in 2020 to 8-10% in 2021. However, with the current global talent shortage and inflation rates reaching as high as about 15% for some roles in 2021, expectations for salary will increase by about 8.1% in 2022.

The talent shortage will not be a brief bump in the road and will require short- and long-term strategies. We’re seeing declining population pyramids across North America and Europe, which means fewer new working-age people in the coming years. Specifically, 2.4 million fewer new workers are coming into the market than in the past five to ten years. India will bring 1.8 million more people into the workforce in the next few years but is showing an impending decline about ten years out.

Top Priorities for GBS Leaders in 2022

GBS leaders should act swiftly in 2022 to make addressing these challenges a priority. Our Key Issues study reports that GBS organizations plan to make cost improvement their number one priority. With the current talent shortage, GBS organizations must also focus on shaping the workforce they have today, including better integrating a future hybrid working model and reskilling and upskilling their workforce to meet evolving needs, among other strategies. Finally, even though GBS organizations thrived during the pandemic, many are getting back on the innovation and growth path and picking up projects that were sidelined during 2020.

Five Actions GBS Leaders Should Take to Address 2022’s Challenges

As GBS leaders rethink cost and talent strategies in 2022, what actions should they consider today and in the coming months to continue delivering value?

Action #1 – Advance Efforts to Shift to Hybrid – If You Fail to Plan, You Should Plan to Fail

In 2022, GBS leaders will look at adjusting their leadership, governance, operating, and talent models to ensure career growth and preserve productivity.

As workers moved to a work from home (WFH) model during the pandemic, most were surprised to discover how well employees and organizations adapted. The GBS industry learned ways to manage remote teams very quickly, and many workers today prefer to continue working from home. The hybrid model is emerging as the preferred working model to reach a balance and retain the benefits of working from home and the office. Our research shows that 70% of teams are likely to operate in hybrid models moving forward. However, many have reservations about maintaining performance benchmarks and ensuring data security, among other concerns. But with the pressure to meet the needs of their employees, many are bending to incorporate the hybrid model to avoid risking losing talent to other more flexible organizations.

Action #2 – Reset Expectations on Cost Arbitrage from the GBS Model

We saw wages increase significantly in 2021, many by 10% and more. This increase is more apparent for IT and engineering skills; however, we’re seeing increases across various roles and skills, including finance, supervisory, managerial, senior executives, business operations, and others. We expect an average wage increase of 8.1% in 2022.

GBS leaders will need to rethink how best to control operating costs. This could be done by assessing the scale of real estate needed or managing talent to retain value without overspending. Leaders will also need to reset expectations in light of the current changes and challenges and focus more on business impact than historical expectations.

Action #3 – Pivot GBS to Support the CEO Agenda Through Innovation, Transformation, and Operation Resilience

GBS organizations will want to pivot this year to focus on supporting the CEO agenda. With the current challenges top of mind, CEOs are looking for innovation transformation and operational resilience. Mature GBS organizations that aim to deliver an increased services evolution beyond arbitrage can deliver twice as much total business impact, whether through enhanced end-customer experience, accelerated digital transformation, increased productivity, or other methods. To do this, we’re seeing many GBS organizations develop multiple types of Centers of Excellence (CoEs), either within or outside of the GBS, to alleviate cost pressure, an absence of existing capabilities or innovation, or an urgent need for business model or digital transformation. The CoEs might target core operations, IT, talent, automation, or sourcing and vendor management, to name a few, and focus on optimizing and innovating various aspects of people, processes, and technology.

Action #4 – Execute Battle Plans to Navigate the Talent Wars – Understand the Talent Shortage Poses Serious Risks to GBS Model Success

A multi-pronged strategy with various tactics is needed to address short- and long-term talent challenges. These approaches could range from making the best of existing talent through engagement, reskilling/upskilling, and evolving the delivery model to rethink talent acquisition altogether. For example, GBS leaders could consider ways to stand out during college recruiting, find new methods to retain talent, or even look into different locations through options like impact sourcing. Finally, many are considering if now is the time to partner with universities to improve education and training programs and develop more project-ready talent.

Action #5 – Obsess Over Employee Experience

For our final action, GBS organizations should consider how to drive GBS employee experience at the enterprise level. It’s no surprise that enhanced employee experience results in improved productivity, efficiency, and innovation, better retention rates, and, ultimately, increased customer satisfaction. If GBS employees have thriving employee experiences, they will better serve the enterprise functions, business units, and internal and external stakeholders. Further, GBS organizations that focus on improving the employee experience and offer hire-to-retire services will maximize their capabilities and help deliver a better overall customer experience.

To learn more, watch the webinar, “5 Success-driving Actions GBS Organizations Need in 2022,” for expert insights from our analysts and the complete, in-depth breakdown of these five strategy actions. You will also hear from leaders from Cargill and Novartis on their employee value proposition and plans for future working models.

How Banking GBS Organizations Have Evolved to Drive Enterprise Data Transformation | Blog

With their growing maturity, Global Business Services (GBS) organizations in Banking and Financial Services (BFS) have taken on critical roles in the data value chain. To learn how banking GBS organizations have evolved to become best-in-class partners supporting enterprise data transformation and the key attributes they now possess, read on.

Data is a powerful force. Our recent study on data and analytics maturity in GBS revealed that best-in-class GBS organizations that leverage data deliver more than one and a half times the strategic impact in such key areas as improved employee and customer satisfaction, revenue growth, and reduced fraud risk compared to their peers.

Unlocking greater value from existing data is critical in driving transformation for BFS enterprises who are looking to make data available for use at scale, apply Artificial Intelligence and Machine Learning (AI/ML) to business cases, use big data to monitor and improve customer journeys and retention scores, detect and mitigate fraud and risks in real-time, and improve Return on Investment (ROI) according to our studies.

What’s the role of GBS organizations in the data lifecycle?

Until a few years ago, most banking GBS organizations played discrete roles across the data value chain. But this has vastly changed. Today, more banking GBS organizations are well-entrenched across the data value chain and have the skills and leadership required to drive the data transformation journey for BFS enterprises, as the illustration below demonstrates.

Skills Data-centric Teams Seek in Banking GBS Organizations
Skills Data-centric Teams Seek in Banking GBS Organizations

What key factors have contributed to this trend?

Here are some of the reasons we see for this growth:

  • Post-pandemic demand: Explosive growth in digital transactions has resulted in a vast trove of data that can be analyzed to better understand customer needs
  • Critical role of data: Data now underpins the success of the subsequent transformation phase for many enterprises that envision bringing together the other critical components of digital transformation such as cloud, AI/ML, front-to-back execution, self-service, resiliency, and mitigating cyber threats
  • Greater GBS maturity: Global enterprises recognize the leadership potential in GBS centers needed to drive enterprise transformation now exists. This is further accentuated by GBS’ ability to adapt to new agile ways of working and, in the process, demonstrate an appreciation of customer-centricity via cutting-edge product and platform development work. All of this is critical in driving the broader enterprise-level vision

What maturity attributes do GBS organizations exhibit in supporting enterprises’ data transformation initiatives?

As GBS juggle varied responsibilities, many demonstrate attributes of an ideal strategic partner, including:

  • Owning end-to-end functions: Many GBS organizations now own complete data transformation responsibilities. For example, a leading US bank GBS hosts a Finance and Accounts (F&A) Data Management team that supports finance business users’ data needs. This team is involved in various activities across data management, data sourcing and provisioning, data governance, data lineage, production data validation, and metadata management. Similarly, other examples exist where the GBS leads the enterprise data capabilities and delivery function across multiple corporate functions, such as legal
  • Driving the future data organization through external collaboration: Many leading GBS organizations are ramping up teams of data specialists and collaborating with the external innovation ecosystem. They are working together to design, administer, and govern data-first setups comprising common data tools, techniques, processes, and data assets explicitly aimed at making data available for use at scale (e.g., accelerate self-service), apply AI/ML to business use cases (e.g., enterprise-wide bots to access knowledge residing across business divisions), and scale-up automation (e.g., 100 percent straight-through processing across front-to-back and reduce risk). For instance, a GBS of a leading US investment bank hosts a Data R&D team in India that collaborates with renowned academic institutions towards developing a scalable, computational system that can extract knowledge from millions of source documents and efficiently structure and represent them for business insights
  • Applying an engineering mindset to business challenges: As technology solution partners for enterprises, banking GBS organizations are solving business-critical problems by applying an engineering lens to them. For example, a leading European bank applies engineering and data sciences principles (e.g., data discovery) to prepare solution and technical designs from the GBS to meet regulatory commitments around data leakage prevention
  • Leveraging internal innovation to provide ‘in-demand’ data skills: In meeting critical challenges like the ongoing talent scramble, GBS organizations are picking up cues from global best practices and implementing them. In one case, a leading insurer moved its actuaries into broader data science positions and upskilled them with predictive analytics capabilities to fill the shortage of internal data scientists needed to extract usable customer insights from its newly formed data lake
  • Solving business challenges and providing critical insights: GBS organizations play an innovative role in delivering impactful data-led solutions that help enterprises solve many business challenges like the following:
    • Opportunity sizing and providing customer insights such as revenue and profitability analysis, user journey analytics, and customer service workload predictions
    • Designing and creating business-critical dashboards to review business performance
    • Assessing campaign impacts such as leveraging predictive analytics-based models to calculate ROI for planned marketing campaigns
    • Improving process efficacy by reviewing and streamlining process

Moving forward, GBS organizations need to bring together their leadership and prowess in technology, domain and organizational context, customer-centric approaches, and change management to become true strategic partners in data transformation journeys. Their continued ability to evolve is the quintessential juggernaut that will drive successful data transformation for enterprises.

To share your thoughts on the role of GBS in enterprise data transformation, reach out to [email protected].

You can also learn about how GBS organizations are developing and preparing for 2022 and beyond in our webinar, 5 Success-driving Actions GBS Organizations Need in 2022.

Building Global Centers of Excellence (CoEs) in GBS Organizations to Drive the CEO Agenda

The Global Business Services (GBS) market has witnessed improvement in performance, enhancements in role, and growth across verticals and functions over the years. In fact, the pandemic served as a catalyst for GBS organizations to step up and deliver higher value-add services, becoming a pillar for enterprises to evolve at a much faster rate. However, as the world evolves, GBS organizations need to remain agile to keep up with advancing technologies, navigate the recent talent shortage, and maintain cost competitiveness and accelerate innovation to help drive the CEO agenda.

To achieve these multiple priorities, many GBS organizations are building Centers of Excellence (CoEs), which further facilitate collaboration and speed-up transformation and delivery for the enterprise. CoEs are entities that work across business (BU)s units, or product lines within a BU, and provide leading-edge knowledge and capabilities in targeted areas. CoEs have proven instrumental for GBS organizations to drive initiatives and deliver access to high-demand skills and competencies, accelerating improvements and pushing efforts forward for faster execution.

The five types of CoEs that drive the CEO agenda

The role of the GBS organization needs to pivot toward creating strategic impact for the CEO. CoEs and competency centers within GBS organizations are designed to streamline and set actionable steps for the CEO’s agenda and critical priorities. The following five types of CoEs help enterprises to drive stronger business performance.

Core operations and corporate services CoE: This CoE focuses on developing expertise for multiple departments within the enterprise, including reporting, finance, marketing, customer onboarding, and core operations

Next-generation IT and digital technologies CoE: This CoE targets the development and management of new skills and technologies, such as AI, analytics, cybersecurity, blockchain, and testing

Talent CoE: The talent CoE develops the strategic services, capabilities, and best practices for staffing, e-learning, and employee onboarding

Automation and/or innovation CoE: Today’s strategic CEOs are looking to quickly advance their organizations’ automation and innovation maturity. This CoE is dedicated to cultivating these initiatives within the enterprise and deploying and scaling technologies like robotic process automation (RPA) and intelligent automation (IA)

Global sourcing and vendor management CoE: The goals of global sourcing and vendor management within organizations are often changing to keep up with market trends. This CoE provides CEOs with needed processes, insight, and agility to manage their sourcing and vendor models as market trends fluctuate

Going into 2022, these five types of CoEs, built within GBS organizations, can advance and strengthen enterprises and push strategies toward next-generation digital technologies, automation, and innovation. We covered this in more detail in our webinar, 5 Success-driving Actions GBS Organizations Need in 2022.

Watch On-demand

Why GBS organizations are the right candidates for building CoEs

Multiple factors play into why GBS organizations are good candidates for building CoEs and ultimately offer significant benefits to enterprises and the CEO agenda. These include:

  • Deep process, domain, and technology expertise, providing a superior overall experience for the enterprise
  • Access to next-generation and niche skills at competitive costs, which accelerate enterprises’ digital transformations
  • Through a microcosm effect, offering high cross-functional and regional impact, the GBS-built CoE improves new product and services development
  • The ability to drive fast-paced, low-cost innovation enables top-line growth throughout the enterprise
  • Alignment with organizational culture and business goals improve overall productivity

How to develop an effective CoE

The various aspects of developing an effective CoE should be charted out to accelerate enterprise-wide adoption. Setting up a CoE is the first step for a GBS to embark on excellence, but it needs to ensure that it takes the right actions to establish success.

  • The first step is to map out a vision and strategy, think through possible risks, and mitigate them
  • Defining a governance and engagement model between the CoE and the enterprise is paramount to ensure that those goals and strategies are communicated, carried out, and met
  • GBS organizations will also need to design a talent model structured around growth and establish funding and financing mechanisms to initiate the process. Once the team is structured and goals are set, GBS organizations should incorporate a way to measure success through performance metrics and KPIs to collect the best data on impact delivered

Best practices for setting up a CoE

CoEs are designed to bring expertise and forward-thinking guidance, which often means taking risks and adapting; however, here are a few best practices to keep in mind when setting up CoEs:

Clearly articulate the “why”: If there is not enough clarity, the CoE is unlikely to deliver results aligned with the enterprises’ strategy

Take an entity-wide view: Combine the business case with an internal assessment of the company’s vision and strategy, requirements, and capabilities to identify concrete opportunity cases

Clearly define the governance and organizational model: The CoE should articulate the governance mechanism, reporting model, roles and responsibilities, and business units supported, so all parties are aware

Talent is the most critical success enabler: Leadership and team skills are often the most critical factor for a CoE’s success. Consider collaborating with external partners such as startups and academic institutions to fill gaps

Aim for quick wins in the initial stages to gain visibility and confidence: Select early use cases that allow the enterprise to develop confidence in the CoE

Ensure strong engagement and precise stakeholder management: Secure the right sponsorship at the right time, preferably in the early stages

For more information on how GBS CoE’s can drive the CEO agenda, watch our webinar, 5 Success-driving Actions GBS Organizations Need in 2022.

Watch the webinar on-demand

 

What Does the Great Resignation Mean for GCCs | Blog

As we look past 2021 and the pandemic, it has become apparent that we are entering 2022 with a completely different and equally challenging set of issues. For the past several years, the “talent war” has had a special emphasis on the demand for high-end digital talent. Today, the challenge to find talent has become widespread across industries and departments and has spiraled into rising attrition rates, higher internal salary demands from employees, and increasing billing rates across a range of job skill sets.

Read more in my blog on NASSCOM’s website

 

The Road Ahead for GCCs – 2022 and Beyond | Blog

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.

Read more on NASSCOM

 

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