Tag: GBS

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


Amid Global Talent Shortage, Everest Group Identifies Skilling Strategies that Drive 3X ROI for Talent-Focused Organizations | Press Release

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:

  • A dedicated skilling team focused on GBS skilling.
  • Commitment and participation from the GBS organization and enterprise senior leadership.
  • Active collaboration with business units on all aspects of the skilling journey (such as funding, program design, skill gap assessment, and content creation and delivery).
  • Periodic assessments of the existing skill inventory and gaps against a standardized skill taxonomy. The study also reveals key skill gaps that GBS organizations are facing.
  • Incentives and career-developing motivators for employees, such as accelerated career paths and internal mobility.
  • Use of technology and ecosystem partners as accelerators for skilling programs and to improve employee experience.

Among those GBS organizations that track cost reduction impacts of skilling initiatives, the contrast among outcomes is significant:

  • ROI on skilling spend: 15-20% for Pinnacle GBS organizations compared to 3-5% for others
  • Reduction in operating costs: 13-18% for Pinnacle GBS organizations compared to 4-6% for others
  • Reduction in hiring costs: 9-13% for Pinnacle GBS organizations compared to 4-6% for others

“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.

How Long Will the Acute Talent Shortage Last? | Blog

Companies now face an acute talent shortage, particularly for digital skills. As I described in my recent blog, this talent shortage means companies must now pay a lot more for new talent and pay more for existing talent to keep them from leaving. Consequently, it will bust corporate budgets for 2021, and it is already causing a boom in offshoring. Company executives now ask me whether I believe this will turn out to be a short-term imbalance between supply and demand or if secular forces at play that will make the talent shortage a much longer-term issue.

Read more in my blog on Forbes

Future of Work from Home in GBS Organizations – Separating Hype from Reality | Blog


COVID-19 has fundamentally altered the Work From Home (WFH) proposition for global organizations, prompting a shift from opportunistic leverage in 2020 to rapid integration of WFH within the future delivery model strategy. Now that the dust is settling a bit from the global health crisis, WFH strategy design and implementation will be critical to ensuring global business services (GBS) organizations’ future success. And WFH will look far different than it did in 2020.

Key learnings from 2020

Most organizations successfully transitioned to scaled remote delivery models with minimal service delivery disruptions in response to COVID-19. This experience has served as a critical proof of concept, and exposed key learnings and opportunity areas associated with scaled WFH delivery.

Let us take a closer look at several key things we learned while conducting the research for our recently published report, Future of Work-From-Home in GBS – Separating Hype from Reality:

  • Employee preferences have evolved as the pandemic unfolded, from a strong preference for full-time/partial WFH to a choice between WFH/WFO in a hybrid delivery modelPicture1 2
  • Overall productivity has either sustained or increased for most organizations. That said, there are issues building below the surface and concerns around false positives, i.e., increase in productivity driven by higher efficiency or higher throughput
  • WFH can drive the next wave of cost optimization across locations for GBS organizations, though true savings will depend on their ability to exploit underlying levers such as real estate, technology, and talent
  • WFH has opened new opportunity areas, like accessing new talent markets, improving retention, and enhancing the employee experience, for improving the GBS talent model
  • WFH is prompting a shift toward a more holistic hub, spoke, and satellite model to enable hybrid delivery models and enhance employee choice and internal workforce mobility
  • Regulatory environment is still an unknown, though governments are taking a proactive approach to define policies such as taxation and labor laws to enable hybrid delivery going forward
  • The WFH model is lucrative but comes with complexities like employee fatigue, potential loss of productivity, work-life balance, and loss of organizational culture that cannot be downplayed

Our interactions with leading GBS organizations over the last 12 months revealed multiple key themes that will determine the success of a hybrid WFH model going forward:

  • Determining roles adjacency, and how they fit into a hybrid delivery model. This is about understanding implications on office design, real estate right sizing, and the technology interventions needed to enable this shift
  • Training employees, especially front-line managers and new employees, on key aspects of virtual delivery, such as target setting, self-time management, and stress management
  • Clear articulation and understanding of organizational culture, managing the employee experience, and driving collaboration in a virtual environment
  • Managing the contingent/extended workforce, including safeguarding intellectual property, monitoring performance, and sustaining productivity

While many GBS organizations are addressing key WFH-related challenges in an agile manner, they must proactively design their WFH strategy and align it with their parent organization’s needs and objectives.

Building a future proof WFH strategy

As GBS organizations build their future WFH strategy, they need to solve for six key elements.

Picture2 1

  • Work portfolio – GBS organizations must utilize a structured and fact-based approach to identifying the best fit work-types and employees for remote delivery, while ensuring a balance between organizational imperatives and employee choice
  • Talent model – GBS organizations must address multiple talent model changes – including the evolving role of the human workforce, workforce engagement models, talent implications of remote working, and leadership development models – with a focus on adapting the workforce to future delivery models
  • Locations portfolio – As a holistic hub, spoke, and satellite delivery model gains traction, GBS organizations must evaluate the role of nearshore/offshore locations based on feasibility and cost savings offered by the WFH model across locations. As organizations evaluate new markets with attractive talent cost propositions, especially offshore locations, location optimization will likely happen over the next 6 – 12 months
  • Technology and real estate infrastructure – GBS organizations must leverage technology to achieve key organizational objectives, such as enhancing productivity, ensuring security and compliance, and improving the employee experience, and to reimagine the workspace, like floor layout, seat allocation, and office safety equipment, to adapt to the unique demands of a hybrid delivery model
  • Performance management – GBS organizations must identify the right levers and leverage best practices – such as adopting an outcome-driven culture, setting clear goals, and realigning the expectations with remote workers – to drive productivity improvements in a sustained WFH environment
  • Risk management – GBS organizations must proactively identify business, talent, data, and regulatory risks related to the WFH model and mitigate the potential impacts.

The way forward

COVID-19 has presented organizations with a unique opportunity to re-strategize their priorities, optimize their operating models, and develop a robust future-proof WFH strategy. We believe GBS organizations that proactively seize this opportunity will emerge resilient and stronger.

Read our report, Future of Work-From-Home in GBS – Separating Hype from Reality, to gain insights on global organizations’ outlook on the WFH model, the extent of adoption, key design elements and approaches, emerging trends and best practices, and key challenges and success factors to enable a scaled WFH model.

We’d love to hear about your WFH experience and approach to designing a WFH strategy for your GBS organization. Please share with us at: [email protected] or [email protected].

Request a briefing with our experts to discuss the 2022 key issues presented in our 12 days of insights.

Request a briefing with our experts to discuss our 2022 key issues

How can we engage?

Please let us know how we can help you on your journey.

Contact Us

  • Please review our Privacy Notice and check the box below to consent to the use of Personal Data that you provide.