Tag: GBS

The Evolution and Growth of Global Capability Centers (GCCs) and the Critical Role of Providers | Blog

In recent years, Global Capability Centers (GCCs) / Global In-house Centers (GICs) have experienced a remarkable surge in popularity amongst enterprises worldwide, with headlines frequently highlighting the establishment of new GCCs across various regions.

In 2023 alone, over three hundred GCCs were set up in offshore and nearshore locations, and this trend is expected to continue in the near future. This growth is not confined to specific verticals or geographies either, as beyond traditional strongholds like the US and Western Europe, enterprises in regions such as Asia Pacific and Japan are also establishing new GCCs. From an industry vertical perspective as well, we are seeing growth across most major segments including financial services, telecom, media & technology, retail and consumer goods, etc.

Reach out to us to discuss this topic further with our expert analysts.

The expanding role of GCCs

The role of GCCs within enterprises has evolved significantly. Initially, GCCs were primarily established for cost arbitrage, overseeing basic support functions such as IT services , back-office operations, and customer support.

However, today’s GCCs have moved up the value chain, delivering a wide array of strategic GCC functions. These include research and development (R&D), product development, digital transformation initiatives, data analytics, and even end-to-end supply chain management.

The evolution of GCCs has been driven by several factors including:

  1. Access to global talent: GCCs enable enterprises to tap into talent pools across the globe, particularly in regions known for specific expertise. For instance, India and Eastern Europe have become hubs for IT and software development talent
  2. Cost arbitrage: While cost savings remain a key driver, the focus has shifted to achieving cost efficiency without compromising quality. GCCs allow enterprises to optimize operational costs while maintaining high standards of service delivery
  3. Innovation and agility: By establishing GCCs, enterprises can foster innovation and agility. GCCs often operate in a start-up-like environment, promoting experimentation and rapid prototyping of new ideas and solutions

A shift in enterprise strategy: Partnering with providers

One fundamental shift accompanying the rapid proliferation of GCCs is the increasing openness of enterprises to partner with providers for setting them up. Traditionally, enterprises focused on growing their GCCs independently or through selective supplier relationships. However, there is now a marked shift towards greater collaboration with providers throughout the GCC lifecycle, including the setup phase. Just a few years ago, less than 25% of GCCs were established with the involvement of providers. Today, that number has risen to around 50%, and we anticipate further growth in the future.

Providers also offer various models to enterprises to support new GCC setups. These primarily include the assisted model, joint venture model, and Build-Operate-Transfer (BOT) model. While the predominant model remains assisted set-ups (support related to initial set-up), the BOT (Build-Operate-Transfer) model – offering support for set-up, scaling, and operation until the center can function independently is rapidly gaining traction. Some of the factors driving adoption of BOT include cost pressures, margin constraints, and talent wars. For instance, while <10% of GCCs were set up using the BOT model a couple of years ago, that figure is now closer to 40%. Combined with the assisted model, these two approaches account for over 90% of GCC setups supported by providers.

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Providers have started to capitalize on the GCC market

Providers have also started to realize the growth opportunity with the GCC set-up market, and this has prompted them to adopt a more nuanced approach. Multiple providers have created dedicated business units focused solely on the GCC market, employing specialized sales teams aligned with GCC accounts. The key performance indicators (KPIs) for these teams primarily include revenue growth from the GCC market segment. In general, enterprises have a range of provider partner options, with three segments of providers each offering a different value proposition:

  1. Traditional system integrators: These include major players such as Accenture, Tata Consultancy Services (TCS), Infosys, IBM, and Cognizant. These companies have been serving GCCs historically across the life cycle including GCC set-up support, primarily on the services side
  2. Big-4 consulting firms: Firms like EY, Deloitte, PwC, and KPMG fall into this category. They have already been supporting the GCC market on the consulting/advisory side and have expanded their service offerings to include managed services within GCC setups in the past few years
  3. Specialist providers: These are niche firms that focus exclusively on GCC setups, such as ANSR. They offer specialized knowledge and tailored solutions for enterprises looking to establish GCCs (primarily in the assisted model). However, in general, they do not take ownership of service delivery

Over the past year, providers have increasingly engaged in strategic GCC alliances and partnerships to enhance their presence in this segment. Accenture’s recent investment of US$ 170 million in ANSR and their subsequent collaboration is anticipated to drive disruption in the broader market. Similarly, in 2023, Gloplax and KPMG formed a partnership to better serve their clients in the GCC setup space.

Looking ahead, we expect a surge in collaboration across different provider categories and strategic GCC investments, as providers position themselves to better serve their clients.

The future of GCCs and provider collaboration

The future of GCCs looks promising, with continued growth anticipated across various industries and regions. As enterprises increasingly recognize the strategic value of GCCs, the collaboration between enterprises and providers will become even more crucial.

Providers will continue to play a pivotal role in enabling enterprises to set up and scale their GCCs efficiently.

Key trends to watch in this space include:

  1. Adoption of hybrid models: Enterprises may opt for hybrid models that combine elements of the BOT and Assisted Virtual Models, allowing for greater flexibility and customization
  2. Emphasis on digital transformation: GCCs are set to spearhead digital transformation initiatives by harnessing advanced technologies such as artificial intelligence (AI), machine learning (ML), and automation. Providers are anticipated to play an increasingly significant role in facilitating this transformation

Conclusion

The growth of GCCs represents a significant shift in the global business landscape. Enterprises are increasingly leveraging GCCs to drive innovation, achieve cost efficiency, and access global talent.

The involvement of providers has been instrumental in facilitating this growth, offering various models and expertise to support GCC setups. Enterprises must carefully assess their options and choose partners that align with their strategic goals. To make an informed decision, especially in the GCC setups space, check out the report: GIC Setup Capabilities in India – Provider PEAK Matrix® Assessment 2024

This report uses Everest Group’s proprietary PEAK Matrix® framework to evaluate the capabilities of 24 providers in the GCC space, assessing the overall vision, capability, and market impact of these providers.

To discuss this topic in more detail or for a detailed analysis, please contact Akshay Mathur or Udit Anand.

Forewarned is Forearmed: What GBS Leaders Should Investigate Before Taking the Job | Blog

Earlier this month I had two of those eleventh-hour conversations with leaders who were about to sign onto gigs reviving GBS models. I was familiar with each company’s revolving door of leaders, the quality of the team, GBS’s historic inability to scale, and the downward trajectory of the share performance. So, I asked each of them, “How do you know you’ll be successful? Will you have the backing and the budget to make a difference? Are there triggers in the business context that say the time is ripe for change? What’s the probability that you’ll be on the street in 30 months?”

And neither of them could answer.

I’m surprised at the number of GBS leader candidates, so flattered by the attentions of internal talent acquisition or a big search firm—or honestly somewhat desperate to nag a new role—don’t ask the right questions or do any homework. Far too many assume that the enterprise’s brand and scale are synonymous with career opportunity and growth.

To quote Shakespeare, what’s past is prologue. Whether the new gig is a greenfield build, reviving a moribund organization, or taking the helm of a well-run operation, not taking the time to do due diligence is a mistake of gargantuan proportions. And to be blunt, too many of our friends throw caution to the wind and blindly sign on.

What must savvy GBS leaders do before signing a new employment contract?

Do some desktop research

.A bit of skunkworks is in order before the seduction goes too far. Find out:

  1. How many CXOs has the company had in the last five years, or even the last 10? Likely CXO revolving doors 1) say the company is a laggard, not a leader, and can’t quite crack a successful formula; 2) suggest that the fortunes of the company aren’t necessarily looking up; or 3) if the past is prologue, the current mob won’t last very long, all connoting a lack of support for a GBS model.
  2. How has the share price performed, and why? It amazes me that folks don’t study historical stock performance. At the very minimum, one would think that the leader would do a bit of forecasting as share performance directly impacts long-term incentive value. Is the industry low growth? Low margin? Has the enterprise placed some wrong bets? While GBS can positively impact share value, it’s not a knight in shining armor.
  3. Who is on the board? Nothing focuses the CEO’s mind like an activist investor. And, if one of the members comes from a services company or an enterprise that has either aggressively gone GBS or outsourced, the new GBS leader should know what’s being whispered in the ears of the CEO.
  4. Where did key leadership come from? Do occupants of the C-suite come from enterprises that have embraced or rejected a GBS model, positioning them as endorsers or guerillas? Chances are their attitudes are ingrained.
  5. How many public announcements relative to reorganization, restructuring, or missing earnings have been made? It should be a red flag if every quarter there’s a difficult press release or a painful earnings call. Likely GBS will be put under pressure to cut, cut, cut, or, when the line of sight to transformation becomes blurred, taken apart under the banner of failure to perform.
  6. What is the company’s acquisition/divestiture history, and what has happened to its GBS leadership? This could suggest that management is subject to a serial game of musical chairs, with constant competition for the top role. While the party with the most mature GBS will likely maintain primacy, in other cases, the GBS role becomes a giveaway to the acquired to keep the numbers sweet.
  7. Is the company ripe for acquisition? The marketplace constantly speculates about combinations. Empirically, executives in an acquired company are likely to lose any “best athlete” contest (trust me, I’ve been there).
  8. Is the GBS organization on a most-admired list? While there’s a lot of subjectivity in these lists, and it’s best to take inclusion with a pinch of salt, a list does say something about GBS’s industry’s reputation. After all, the brand of a GBS is usually conflated with the brand of the leader.
  9. If there was a previous incumbent, what have they been saying on industry podiums? While a predecessor’s public statements may be a bit of a hype, their comments will likely give the prospective leader a sense for the historic GBS state of play.
  10. What are the consultants saying? Advisors are a chatty bunch. They are usually comfortable dishing about their (former) or (prospective) clients, hoping upon hope that giving the straight skinny to a prospective leader will position them for future engagement. You never know what you’ll learn.

And ask the uncomfortable questions

It’s your career; why wouldn’t you ask critical questions? Whether it’s to the hiring officer or the search consultant, if you can’t get clear answers to key GBS-related questions, be suspicious.

Don’t just read the tea leaves. They won’t give you the full picture.

Is the enterprise serious about transformation?

  1. Does the enterprise have a plan for GBS? If the enterprise does have a plan, it may be a consultant’s PPT, not necessarily the plan the new leader can actually implement. Or perhaps the candidate has another vision, causing dissonance. On the other hand, if the enterprise is waiting for a new leader to tell them what to do, it may take a year or more to design, plan, syndicate, and get buy-in, further delaying value delivery and creating a class of enterprise non-believers.
  2. Who is the enterprise’s consulting firm drug of choice, and, if applicable, who developed the GBS strategy? Not only can we all recognize a specific consulting firm’s PPT slide, but we all know what they are advising. Some firms frankly don’t understand the model, others cooky-cutter their GBS approach, while some partners really understand how culture and context shape the solution and give a new leader something to build on. No position is more difficult than disputing the expensive consultant’s solution on Day 1.
  3. Does GBS strategy align with corporate strategy? All too often, GBS is a thing in and of itself. If the enterprise hasn’t aligned its GBS strategy’s mission and goals directly, the two will move in parallel, unaligned universes.
  4. To what extent is the GBS program funded? One of the most dangerous sentences muttered in the heat of GBS leader recruitment is, “We will do whatever it takes.” Discount that declaration by half. None of us fell off a turnip truck yesterday; transformation programs are high-investment, complicated, multi-year endeavors. Funding won’t magically appear.
  5. What’s the role of the Chief Transformation Officer? Increasingly, CTransOs are showing up on the org chart? What is their mandate? Will they see GBS levers as “theirs” and go to battle with the model? Or will they work collaboratively?
  6. What’s the time frame for change? Are expectations unreasonable?
  7. How many major transformation programs have been attempted in the past 10 years? It’s important to know whether the enterprise is suffering from change fatigue, and if GBS is considered just another program destined for failure.
  8. What’s the company’s experience implementing ERP? There is a correlation between successful ERP implementation and the success and sustainability of a GBS; after all, they are intertwined.
  9. Are all transformation levers on the table? Most enterprises have sacred cows. Is outsourcing deemed counter-culture? Is legal off-limits? Is self-serve a no-no? Can regions or business units opt out?
  10. What has the business historically thought of GBS? Does the enterprise believe in the concept? The answer to this question will shape the new leader’s approach to stakeholder management—educate and start from scratch, build upon existing strengths, or spend time re-directing and re-educating.

Are people, the organization, and culture supportive or stacked against you?

  1. What’s the power structure? Is the enterprise center-led, giving the GBS model sufficient support, or distributed amongst regional or segment leadership requiring the GBS leader to manage a complex matrix in order to get anything done?
  2. Why did the last leader leave? Of their own volition? Exited because they were too aggressive/too slow/not a good cultural fit? Moved elsewhere in the business? Retire? Each one of these situations has different implications for the new leader and may foreshadow their own enterprise career trajectory.
  3. Does the enterprise take well to outsiders? When a corporate denizen introduces themselves, is the second statement, “I’ve been with x company for y years?” it suggests the enterprise may have a not-invented-here approach to problem solving and becoming “one of us” will take a very long time.
  4. Was an internal leader considered for the role? Beware of the passed over leader. At times, they can sabotage the new leader’s agenda. Ask why they were not appointed—the reason will likely be very telling.
  5. Does the company believe in internal rotations? Has a leader rotated out of GBS? Does the enterprise look at GBS as a talent hub? Or the graveyard of ambition?
  6. Who has GBS reported to previously? Heard the stories about GBS leaders with four bosses over five years? GBS reporting can be a management hot potato—and it’s difficult to execute a complex program without consistent direction.
  7. How competent is the team? Wholesale replacement is not only not likely in the cards, it won’t respect the DNA (Respect the DNA – Sourcing Change). But a base understanding of capability before joining is critical.
  8. Who is out to torch the model? Not all stakeholders are created equal or have the same impact on GBS program success and sustainability. Ask about the CHRO. Believe it or not, the CHRO can be GBS’s (and its leaders’) biggest endorser or enemy. Do any of the enterprise’s key leaders actively or quietly oppose the concept?
  9. What are the enterprise’s career-limiting moves? Every enterprise has unwritten codes. As an external, the GBS leader must get up to speed quickly.

What’s the upshot? Be discerning, folks. One short stint in the wrong role may not derail a GBS career, but serial missteps ring alarm bells for hiring officers. Make sure you are forearmed when you take up a new role. It will pay off for your career in the long run.

Global Services Market Update: Leveraging Providers for GIC Success | Webinar

ON-DEMAND WEBINAR

GLOBAL SERVICES MARKET UPDATE: LEVERAGING PROVIDERS FOR GIC SUCCESS

Driven by multiple disruptions over the last five years, including the COVID-19 pandemic, talent shortages, economic pressures, supply chain disruptions, and geopolitical tensions, enterprises are rethinking their sourcing strategies. This has introduced a new layer of dynamism to the fast-evolving global sourcing industry.

Watch Everest Group experts Vipin Alexander, Udit Anand, Ravneet Kaur, and Akshay Mathur for an insightful session exploring key developments in the global sourcing industry during the first half of 2024. The webinar covered updates on the global sourcing industry, the increased traction in the Global In-house Centers (GICs) leverage, and the role providers can play to make GICs a success.

With the resurgence of provider-assisted GIC setups, this session further explored different models through which providers support GIC setups, such as Build-Operate-Transfer (BOT), Assisted, and Joint Ventures (JV) models, with relevant case studies.

Additionally, attendees learned how providers stand to benefit from supporting GIC setup pursuits, and the capabilities they should develop to approach this opportunity pragmatically.

What questions did the webinar answer?

  •  How did the global sourcing market evolve in 2023 and H1 2024?
  • In what ways are providers facilitating the success of enterprises in their GIC journey, particularly in setting up GICs?
  • What capabilities / best practices should providers establish to pragmatically support GICs?

Who should attend?

  • Senior leadership (CEOs and CXOs) of enterprises
  • In-house centers/GICs/shared service centers leadership
  • Global sourcing managers
  • GBS and SOVM professionals
  • Senior leadership / strategy teams of providers
  • Sales teams for providers
  • Business unit leaders leading the GIC segment in providers
 
Practice Director
Senior Analyst
Practice Director
Vice President

Everest Group, in partnership with Sourcing Change, releases the 2024 Global Business Services (GBS) Rewards report, the only one of its kind in the industry

The 2024 Global Rewards report examines the total reward structures in place at Global Business Services (GBS) organizations and provides an understanding of the differences between important leadership rewards by organizational characteristics, demographics, and leadership profiles.

 

Leading global research firm Everest Group, in partnership with Sourcing Change, has released its “Global Business Services Rewards 2024: How Does Your Organization Stack Up?” report, focusing on current trends in a post-COVID world. The analysis in the report is based on a survey of GBS leaders from 36 leading global enterprises and builds on Sourcing Change’s 2022 study. 

With two-thirds of the GBS leaders who participated in the research coming from global corporations, the study provides an excellent insight into the reward structures of high-impact and complex roles. Key leadership positions represented in the research include global heads of sourcing, regional and functional leaders, and key other expert roles such as global process owners, PMOs, and those responsible for digital innovation. 

With 81% of the GBS leaders surveyed for the report believing that they feel appropriately compensated for their work, dissatisfaction is not the norm in the GBS sector. However, given that access to talent remains a key performance indicator in the GBS and shared services industry, recognizing and rewarding employee performance continues to be essential for retaining and attracting top talent. 

 

Additional highlights from the report include: 

  • Despite the compensation for the GBS leaders in senior roles being regarded positively by the majority of those surveyed, leadership compensation did not necessarily correlate with driving rewards for the wider team 
  • North American organizations continue to offer higher pay and remuneration when compared to their European and APAC counterparts 
  • There are still disparities in compensation by gender across GBS leadership roles, except in roles where there has been a more long-standing equality in representation for both women and men.  

 

Please click below for the summary findings from the Global Business Services Rewards 2024 report. 

Global Business Services Rewards 2024 report 

 

Deborah Kops, Sourcing Change Principal and Everest Group Executive Advisor, said: “Not surprisingly, compensation is now reflecting the war for talent when it comes to other critical GBS roles. This recognizes the fact that it takes a strong team to move the dial on GBS performance and value creation.” 

Arushi Gupta, Practice Director (GBS and Shared Services), Everest Group, said: “With the GBS model transforming the way businesses operate, attracting and retaining top leaders has never been more critical. We’re seeing the start of a potential trend of global leadership roles moving offshore and nearshore, driving the need for compensation to match onshore standards.” 

For more information about the report, contact Everest Group’s Arushi Gupta, Practice Director (GBS and Shared Services), at [email protected].  

 

About Everest Group

Everest Group is a leading global research firm helping business leaders make confident decisions. We guide clients through today’s market challenges and strengthen their strategies by applying contextualized problem-solving to their unique situations. These drives maximized operational and financial performance and transformative experiences. Our deep expertise and tenacious research focused on technology, business processes, and engineering through the lenses of talent, sustainability, and sourcing delivers precise and action-oriented guidance. Find further details and in-depth content at www.everestgrp.com.  

 

About Sourcing Change

For 14 years, Sourcing Change has been working with leading global enterprises to support the change that global business services, shared services and outsourcing models represent. Our focus has been on developing new target operating models for a range of business functions, such as finance and human resources, by rethinking work content, structure, scope, solutions, organizations, and talent in the face of four key disrupters: rapid digitization, generational shifts, changing business dynamics, and the imperative for performance.  

We also focus on the single most critical success factor for enterprise services organizations: talent. Over the years, we’ve helped accomplished professionals into roles in leading organizations; we’re now combining our operating experience, industry and market knowledge, and networks to help enterprises source the talent that delivers sustainable change. Find further details and in-depth content at www.sourcingchange.com.

Managing the GBS Hybrid Resourcing Model – Break Free from Habit or Fall Behind | Blog

Global Business Services (GBS) must evolve and, as the iconic Queen song references, “break free,” from outdated practices. This blog explores how GBS organizations should move beyond their comfort zones when it comes to managing hybrid models, finding a balance for in-house and outsourced resources.

Since the inception of Global Business Services (GBS) almost two decades ago, enterprises have been experimenting with its resourcing model—whether to perform the work with their own resources, outsource the work, or create a hybrid resourcing model that is a strategic blend of both in-house and outsourced resources. In the early days of the model, enterprises leaned on business process outsourcers to get transactional delivery up and running. But, over time, as they mastered the art of location, hiring, and delivering processes, in-house delivery has increasingly become the option of choice when it comes to the delivery of work that is highly contextual and requires proximity to the stakeholder. As a result, GBS is often relegating third-party delivery for activities with standardized workloads, variable volume, and those that require specialized expertise and/or technology. Today, the norm is a hybrid of both resourcing models.

During the last six months, Everest Group interviewed eight GBS leaders across industries and asked them to shine a light on how they manage their GBS hybrid resourcing models. All aspire to put science and discipline into their operations, with some semblance of guiding principles and criteria that guide what is delivered in-house and what is delivered by third parties. However, in reality, GBS leaders’ biases—as opposed to data-driven decision criteria—have governed who does what, when, and how. No surprise—the leaders’ resourcing strategy is driven by a comfort factor and received industry wisdom. It’s usual to weigh past experience and beliefs about the value of contextual understanding, proximity, and the same name on the paycheck to stakeholders. As one of our study participants stated, “Proximity dictates the game—be it language, culture, or time zone,” while another said, “We find comfort in leveraging proven methods from our past successes because it minimizes risk.”

However, as scope increases, technology advances, and the level of partnership with the business changes, managing and governing hybrid models must evolve, ensuring that the right work is delivered by the right source in the right location, and that as conditions change, the model can flex to deliver to new business exigencies.

Why do GBS organizations fail to optimize their hybrid models?

There are inherent, real challenges in the way we manage our hybrid GBS models today.

  • Rigid contracts: One big obstacle is that GBS organizations usually enter inflexible outsourcing supplier contracts. These contracts are usually easy to ramp up, but when it’s time to scale down, it’s like pulling the vendor’s teeth
  • Management handoff: Often, the task of managing suppliers gets passed off to procurement or vendor management groups. But managing a hybrid resourcing model goes way beyond just keeping tabs on SLA performance. Currently, we don’t govern how we resource; we only govern contract compliance
  • Neglecting supply and demand planning: For hybrid management to be effective, GBS leaders must be able to forecast demand, evaluate it against current and potential supply and capability, and be able to extend their talent pools. The GBS model lacks the kind of focus on workforce management principles—such as making the optimum decision about the right source and shore—that their IT brethren have mastered
  • Master-servant dynamics: Most GBS get it wrong—looking at outsource providers as servants rather than another resource source or part of an ecosystem of capability. The best outsourcing arrangement is not a master-servant relationship. Yes, someone is always a client, but the model is about building a mutually beneficial partnership where both sides bring something valuable to the table
  • Resistant to change: Unfortunately, many GBS organizations are reluctant to upset the leadership team’s apple cart. Defining new roles and changing the way the team works is often uncomfortable. Often, the budget is used as an excuse to preserve the organizational status quo

The current chaos and the proposed unified model

As Everest Group has found, currently very few organizations have a focused hybrid management function with processes aligned to optimize operations. The function in and of itself is “hybrid;” it must connect the dots between a number of decisions that GBS organizations commonly make in a vacuum. Today, procurement or a dedicated GBS vendor management team manages compliance to a contract while GBS’s management team looks at other metrics, perhaps only those of in-house delivery. The strategy function is focused on locations and perhaps the business case for one source of labor or another in which location. HR has been taking a stab at workforce planning but failing in execution. And service delivery leaders usually focus only on in-house delivery without regard to how the outsourcer is performing. If we only took one step back, we would realize that each decision is connected to each other, and only when they are joined up can a GBS make optimum resourcing decisions. This disconnected approach means that important decisions are not well-coordinated, leading to suboptimal outcomes.

Now, consider a power trio working together seamlessly. At the top, the central strategy team guides where and how work should be done—onshore, offshore, nearshore, in-house, or outsourced—to balance cost, efficiency, and quality. On one side, HR handles workforce planning and talent management, ensuring the right skills are in place. On the other side, the unified service delivery team, an evolved form of the current GBS vendor management team, monitors performance, manages contracts, and ensures compliance to desired service levels.

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To make this trio effective, two things become critical: investments in efficient tools and technology, and clear governance mechanisms to ensure all teams are on the same page. This interconnected approach is how GBS leaders can make hybrid resourcing not just functional but exceptional.

Why make the change now?

Let’s unpack the imperative and potential advantages of taking hybrid model management to the next level:

  • Business agility and capacity flexibility: The evolving business landscape demands constant adjustments in GBS capacity and capability. By designing, implementing, and governing a resourcing model that can quickly accommodate additional capability, by accommodating peak loads and reassigning work between both methods, GBS organizations can quickly flex
  • Virtualization of work: The concept of performing more work remotely, exacerbated by COVID, has opened up new possibilities for work placement. Hybrid working models now can more easily tap into new pools of global talent
  • Advancements in technology: Improving automation and AI tools that are focused on frictionless workflow and service experience, such as ServiceNow and Remedyforce, are now enabling the operation of hybrid models, creating one service experience regardless of the resourcing model, and supporting workforce deployment capabilities.
  • Expanding GBS scope: As GBS organizations take on more—and often more complex work—the capabilities to deliver become more critical and varied. Integrating third-party expertise into the resourcing mix allows GBS organizations to tap into specialized skills and knowledge not necessarily found in house
  • Optimal business investments: By tapping into both in-house and outsourced resources, companies can both optimize and avoid investments in technology and facilities, optimizing GBS’s business case and creating an optimal cost-benefit equation
  • Business Continuity Planning (BCP): In a hybrid model, GBS can enhance resilience by diversifying delivery risk across multiple resourcing channels, avoiding operational disruption operations even in the face of disruptions
  • Preserving business intimacy: GBS organizations can enhance the relationship with stakeholders in the make-or-buy decision by acknowledging where business context is critical in performing work, and where it does not matter

As the Queen song says, “I’ve got to break free.. I want to break free,” it hits home for GBS organizations, right? Most of them have recognized the need for change but are struggling to nail down the perfect formula for the trinity of right place, right work, right time. The fact is, there’s no one-size-fits-all solution here. GBS leaders are in for some trial and error, tinkering until they find that perfect mix. So, don’t fret if you’re still figuring it out. Keep experimenting, keep tweaking, and who knows, you might just stumble upon that magical hybrid balance that’s tailor-made for your tribe. Reach out to us to explore this topic further.

Shaping the Future-Ready Workforce in GCCs: A Critical Component of Future-proofing | Blog

Enterprises today must prioritize building and scaling next-generation products, platforms, and services to stay competitive. This blog explores how Global Capability Centers (GCCs) are helping to navigate these challenges by fostering a future-ready workforce through innovative learning strategies, modernized job architectures, and advanced technology solutions.

In today’s rapidly evolving digital landscape, the prioritization of building and scaling next-generation products, platforms, and services has become paramount for enterprises. The imperative for accelerated digital transformation profoundly influences the speed of planning, execution, integration, and outcomes. As technological advancements, including artificial intelligence (now, with in-roads into generative AI), automation, and machine learning, continue to reshape industries, enterprises must adapt swiftly to maintain competitiveness. Amidst this drive to develop specialized capabilities, a critical question persists in boardroom discussions: How can an enterprise ensure its workforce is future-ready?

Over the past decades, GCCs have exhibited remarkable resilience in their operations and delivery, despite facing macroeconomic challenges and business downturns. This resilience is evident in their significant improvements in Net Promoter Score (NPS), spearheading end-to-end process transformations, delivering value beyond cost savings, and achieving a higher degree of integration with enterprises. Additionally, they managed to navigate the era of the Great Resignation with limited operational breakages and are now tackling the complexities in optimizing the cost pressures.

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Evaluating Brand Perception Data to Improve EVP and Talent Attraction | Webinar

On-Demand webinar

Evaluating Brand Perception Data to Improve EVP and Talent Attraction

A distinctive employee value proposition (EVP) is proving to be the deciding factor in GBS and tech employers’ differentiation, particularly in a market with slowing talent demand.

Our experts Rohitashwa Aggarwal, Partner, and Shivangee Kumar, Senior Analyst,  joined by leading speakers in a webinar discussion on the critical role of employer brand perception in the effort to win and retain talent. The panel evaluated brand perception data insights from leading organizations to surface successful strategies for increasing employer attractiveness and developing an appealing, stand-out EVP.

Our panel guests, from best-in-class GBS organizations, detailed how they approach and streamline their talent strategy with EVP at front-of-mind. Attendees will come away with actionable ideas on showcasing their EVP and attracting top-tier GBS and tech talent.

What questions did the webinar answer for the participants?

  • How do key brand perception factors impact GBS and tech enterprises’ evolution?
  • How can companies evaluate their own brand perception from an employee’s perspective?
  • Which key factors (such as age, size, and vertical) correlate with the employer brand perception?
  • How are top employers differentiating themselves from their peers?
  • What are the top employee grievances?

Who should attend?

  • GBS site leaders
  • GBS strategy leaders
  • HR leaders / heads
  • Talent strategy leaders / heads
  • Technology / IT leaders
Aggarwal Rohitashwa B
Partner
Everest Group
Kumar Shivangee 1
Senior Analyst
Everest Group
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Senior Vice President & Group Head of Global Enterprise Services
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Mohammad Asad Thomson Reuters Professional headshot
Asad Mohammad
Vice President – Global Centers Operations & Strategy
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Why Your Employer Brand Matters: Key Insights from Top GBS and Tech Talent Reports | Blog

Amid economic challenges and a cautious business outlook, maintaining a positive brand image is not just important – it’s vital. Specialized skills are more critical than ever, making the attraction and retention of top talent a key objective for organizations. Exceptional talent is the golden ticket, and GBS and tech employers must revamp their approach to building, maintaining, and strengthening their employer brand in local markets. But let’s face it, it is easier said than done.

What the latest research reveals

In its third iteration, Everest Group Top Employers research dives deep into the employer brand perception of over 380 leading GBS employers across India, the Philippines, and Poland and over 430 leading tech employers across India, the US, and the UK. This study isn’t just about ratings – it’s a mirror showing how prospective employees view you across critical dimensions like compensation, work environment, work-life balance, culture, leadership, career development, and diversity. Both reports reflect employee and candidate sentiment, offering a raw, unfiltered view based on publicly available information. We continue to track this market and refresh this assessment annually.

Want to know how you stack up against the competition? This is your blueprint.

The cold, hard truths

  • Brand perception is on a downward spiral: Since 2022, employer brand perception for both GBS and tech employers has plummeted. GBS perception fell by 3% in India and the Philippines. For tech employers, brand perception dropped by 2% in India, 5% in the US, and a staggering 10% in the UK. These figures aren’t just stats—they’re a wake-up call. Brand perception is volatile, and if you’re not constantly investing in your EVP, you’re falling behind
  • Volatility is the new norm: Employer brand perception is as stable as a house of cards. Last year’s top employers have faded – 40-45% of top employers have fallen from grace
  • Career development is a dealbreaker: A lack of investment in career development and upskilling is a major turn-off for employees. GBS ratings in this area have dropped by 7% YoY in India and the Philippines. For tech employers, the drop is even more pronounced, with ratings falling by 8-12%, especially in the UK. This is a clear signal: employees want growth opportunities, and if you’re not providing them, they’ll look elsewhere

Busting the myths

  • Big doesn’t mean better: Think your size will save you? Think again. Some of the largest GBS entities are getting slammed with negative feedback. Size isn’t the silver bullet
  • Old isn’t gold: Longevity doesn’t guarantee success. Many companies hit their peak brand perception in the first three years and then decline. Don’t rest on your laurels
  • Location, location, location: Headquarters matter. North American-headquartered GBS fare better in India and the Philippines, while European-headquartered GBS do better in Poland

The outside-in advantage

Here’s the kicker – understanding and leveraging outside-in brand perception might just be your secret weapon. This perspective offers invaluable insights into how prospective employees see you.

  • Validate and identify gaps in your internal pulse surveys by comparing them with your external branding strategy. See what’s working and what isn’t
  • Align your internal strategies with these external perceptions, and you’re on your way to attracting and retaining top talent
  • Leverage this independent outside-in assessment to supercharge your branding initiatives

Making it actionable

So, what can you do? Here are some actionable insights:

  • Invest in EVP: Constantly evolve your Employee Value Proposition. It’s a moving target and requires continuous effort
  • Enhance the work environment: Create a workplace that people want to be a part of. Invest in a positive work culture and flexible work policies
  • Competitive compensation: Make sure your pay and benefits are at least on par with your competition. Don’t give talent a reason to look elsewhere
  • Prioritize career development: Offer clear paths for growth and upskilling opportunities. Show your employees you’re invested in their future
  • Embrace diversity and inclusion: Foster an inclusive environment. It’s not just about ticking boxes – it’s about creating a culture where everyone feels valued
  • Stay agile: Keep your finger on the pulse of employee sentiment and be ready to adapt quickly. Brand perception is volatile, and complacency is your enemy

Conclusion: embrace outside-in brand perception

As the battle for top talent heats up, the importance of a strong employer brand can’t be overstated. The insights from the “Top GBS Employers” and “Top Employers for Tech Talent” reports highlight the need for a comprehensive, multifaceted approach to building and maintaining a positive brand image. Focus on continuous improvement in key areas, understand and leverage the connection between local and global brand perception, and be ready to adapt. The ability to respond to changing perceptions will be crucial for sustaining a strong employer brand in the dynamic global market.

In the end, the quest for top talent is relentless. But with the right strategies, you can turn the tide in your favor. Are you ready to step up your game?

See the reports

The Top GBS Employers™ in India, The Philippines, and Poland

The Top Employers for Tech Talent™ in India, the US, and the UK

Everest Group Names 2024’s Top Employers for GBS and Tech Talent

Leading global research firm launches third annual edition of the Top GBS Employers™ and Top Employers for Tech Talent™ reports.

DALLAS, July 8, 2024 — Everest Group today released the 2024 editions of the Top GBS Employers™ and Top Employers for Tech Talent™ reports. Initially released in 2022, Everest Group’s top employer reports were the first to evaluate the global business services (GBS) and tech market for their efficacy and ability to demonstrate their employee value proposition.

In both reports, Everest Group analyzes the brand perception of leading GBS and tech employers across multiple dimensions, including compensation and benefits, work environment, office ecosystem, work-life balance, hybrid work policies, culture and values, leadership, career development, and diversity and inclusion. Everest Group’s reports allow enterprises to evaluate their strengths and benchmark themselves against competitors in their respective markets.

Key Findings:
  • Overall, employer brand perception in the GBS market continues to deteriorate, with average brand perception dropping by 3% in India and the Philippines. Poland is the market which bucks this trend, seeing an improvement in brand perception of 7%
  • For tech employers, average employer brand perception scores declined across India (2%), the US (5%), and the UK (10%)
  • A perceived lack of investment in career development and upskilling remains a major concern for employees. GBS ratings in this area have dropped 7% year-on-year in India and the Philippines. For tech employers, ratings in India, the US, and the UK have dropped by between 8-12%
  • Work environment and compensation are crucial for GBS employers: 50% of companies with high ratings in this area outperform their peers
  • For tech talent, the work environment and diversity and inclusion are the two most crucial factors: 64% of companies with high ratings in these areas outperform their peers
  • Brand perception is volatile, with 44% of last year’s top employers for tech talent falling out of the top quadrant. At the same time, almost a fifth of companies (15-20%) in the top quadrant have improved their year-on-year brand perception scores, underscoring the value of consistent investment to improve EVP
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According to Rohitashwa Aggarwal, Partner at Everest Group: “In today’s competitive talent landscape, our latest Top Employers research is indispensable. It delves deep into the employer brand perception of over 800 GBS and tech employers across key regions and offers critical and actionable insights. As companies navigate the complex challenges of attracting and retaining top talent, this report provides essential benchmarks and strategies to enhance employer brand perception, optimize talent management, and build resilient talent models for today and for the years ahead.”

“However, our findings reveal a troubling decline in employer brand perception for GBS and tech employers. A lack of investment in career growth is a major concern globally, which has consequently resulted in a drop in overall ratings.  Crucially, we can see a widening gap between the majority of the market and the top performing organizations, which excel in providing better work environment, compensation, and diversity in the workplace.”

“In future, we expect the battle for top talent to intensify, with employer brand perception becoming increasingly volatile. Companies that invest in career development, inclusive work environments, and competitive compensation will lead the pack.”

GBS Top 50 1

Top Employers’ Response:

“We are incredibly honored to be recognized as one of the Top GBS Employers in India by the esteemed Everest Group. This accolade underscores our unwavering commitment to fostering a culture of excellence and enhancing the people experience at Allianz Services,” says Turan Sahin, CEO of Allianz Services. “Our people are at the heart of everything we do, and we prioritize their growth and engagement by embedding our core values into our daily operations. Our holistic people strategy ensures a supportive and empowering work environment, driven by the belief that happy employees lead to happy customers. This prestigious award not only celebrates the dedication of our team but also reinforces our leading position within the industry.”

“Being recognized as a Top GBS Employer in India is a reflection of our commitment to fostering a workplace where talent thrives and innovation flourishes. It inspires us to continue pushing boundaries and nurturing a culture of excellence and inclusivity,” says Vijayata Nath, CGSA Leader, Cummins Global Services & Analytics, Cummins India.

“I am proud that Global Enterprise Services of dsm-firmenich has received the ‘Top GBS Employer of 2024’ award. As a trusted enabler and a strategic business partner providing services across dsm-firmenich, this recognition is a testament to our ability to drive performance, innovation, and seamless end-to-end collaboration in alignment with our business purpose of bringing progress to life.
This achievement validates our unique culture and our ability to nurture a diverse talented team in a flexible and progressive environment.  Together, we are future-ready and agile to meet the dynamic transforming and growing needs of all functions and businesses across the company. As we continue to strive to excel and add valuable impact to the business, we will remain committed to role model our leadership in safety, innovation, technological advancement, automation, and talent management,” says Manoj Kalra, Head of Global Enterprise Services, dsm-firmenich.

“We’re honored to be acknowledged for our dedication to attracting and keeping top tech talent.  This recognition underscores our commitment to fostering ongoing growth, learning, and innovation, all aimed at delivering outstanding value to our clients. We extend a big ‘thank you’ to everyone who has played a part in achieving this important validation,” says Joe Manna, Group President Global Technology, EITS, Experian.

“This significant achievement underlines our commitment to cultivating a highly accomplished and dynamic workforce. Our aim is to attract and retain top tech talent, empowering them to thrive and deliver exceptional solutions that elevate operational and financial performance for our esteemed clients across the globe. This award reaffirms our all-inclusive approach to nurturing talent and further strengthens our determination to lead in the ever-evolving tech landscape,” says Manish Jain, Country Managing Director, Experian India.

“At Fidelity Investments India, our teams across technology, operations, analytics, data science, and research provide cutting-edge solutions to the business. This recognition is a testament to our culture of continuous learning, innovation, and excellence as one unified global team. Thank you to all our employees who contribute to making Fidelity Investments truly a great place to work,” says Vijai Kishan, Head of Fidelity Wealth, India and Regional Chair, Fidelity Investments India.

“I am delighted to learn that JTI GBS has been recognized as a top employer in Poland by Everest Group,” says Jay Desai, VP Global Business Services, JTI. “Employee engagement, people centricity and talent development remain at the core of JTI’s GBS strategy. Attracting, developing and retaining GBS talent in the highly competitive Polish talent pool remains a critical focus for us. JTI GBS’s mission requires intense collaboration between our GBS employees and customers in the markets and functions – which in turn requires a purposeful and dedicated talent management strategy to ensure that our process experts inside our GBS centers are fully supported with upskilled trainings, advanced technologies and infrastructure, in addition to flexible working environment and policies which facilitate their knowledge and career growth. Our people are GBS’s greatest asset and priority. We will continue to invest time and resources into their ongoing development and engagement.”

“We are honoured to be recognized by Everest Group as a top GBS employer in India. This accolade is a testament to the unwavering dedication and talent of our people, who are the backbone of our success. I want to thank our GCC leadership and HR teams for the amazing work over the last two years and for ‘Creating their Legacy’,” says Serge De Vos, Head of Enterprise Data and Global Business Services, Kraft Heinz Company.

“We are honoured to be recognized by Everest Group as a top GBS employer in India. Our intent is to always champion diversity, inclusion, and belonging – values that have also been integral to our global strategy. We take pride in developing a robust awareness foundation through our learning ecosystem and business resource groups, fostering community and engagement in our company. Thank you to all our employees for creating this impact in the external community and showcasing the trust they have in the leadership and the organization,” says Preeti Naval Kumar, Director of HR for Enterprise Data and GBS, Kraft Heinz Company.

“We are honored that PMI’s Global Business Solutions (GBS) has been recognized as a Top Employer by Everest Group. This recognition goes to our global community of colleagues. Thanks to them, GBS is a dynamic organization where everyone can thrive as a professional,” says Edvinas Katilius, VP GBS, Philip Morris International. “GBS is a business partner for PMI, providing best-in-class, integrated, cross-functional services and solutions. This award marks another milestone on our journey. I am proud of this accomplishment and confident that we are on the right path in terms of both creating value for the company and enabling our talented people to grow, develop, and enjoy working at PMI.”

“PMI Business Solutions (Philippines) Inc. is honored to be recognized again as a top employer by the Everest Group. GBS Manila will continue to be a strategic location as we continue to provide competitive world-class talent and infrastructure to achieve the ambition of PMI’s smoke-free future,” says Sharmini Krishnan, President, Head of PMI Business Solutions (Philippines) Inc.

“We are delighted to see that Thomson Reuters has been recognized as a top employer in India and Philippines as well as the top employer for Tech Talent in India. Our Global Centers have continued to make a critical impact on our enterprise performance, and I am particularly proud of how the leadership footprint and business decision making has grown significantly in these centers in recent years. Moving forward, as the company embraces AI transformation, I am confident that the Global Centers will play a key leadership role in this journey,” says Pradeep Lankapalli, Managing Director: Content Operations & Head of TR Global Centers, Thomson Reuters.

 
About Everest Group

Everest Group is a leading research firm helping business leaders make confident decisions. We guide clients through today’s market challenges and strengthen their strategies by applying contextualized problem-solving to their unique situations. This drives maximum operational and financial performance and transformative experiences. Our deep expertise and tenacious research focused on technology, business processes, and engineering through the lenses of talent, sustainability, and sourcing delivers precise and action-oriented guidance. Find further details and in-depth content at www.everestgrp.com.

Everest Group Engage

Everest Group’s inaugural global conference event, “Everest Group Engage,” will be held September 30 – October 2 at the Renaissance Dallas Hotel. The theme of the conference is “The Pragmatic Edge: Designing Your Future.” The agenda will help C-suite leaders and teams in global business services, sourcing and vendor management, and shared services operate at peak productivity and efficiency. For more information, visit https://events.everestgrp.com/engage2024

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