Tag: GIC

Enterprises are Betting Big on India GICs for Driving Digital | Sherpas in Blue Shirts

The rise of India-based Global In-house Centers’ (GIC) role in supporting enterprises’ digital transformation through digital technologies, such as RPA, mobility, and IoT, has been significant in the past few years. In 2017 alone, over 50 percent of the GIC set-ups in India were focused on building/enhancing enterprises’ digital capabilities.

Indeed, enterprises are making their India GICs the hub for developing solutions and products for next-gen technologies, such as machine learning, NLP, predictive learning, cognitive, and blockchain. Recent examples include Samsung, State Street, and Western Union.

Why India?

  • Talent availability: The ability to scale next-gen skills at low cost is a key differentiator. For instance, India accounts for 50-60 percent of the talent pool employed for delivery of automation services from offshore/nearshore locations. A strong base of third-party service providers has also established digital and technology labs in India
  • Mature delivery model: India accounts for 30-35 percent of all nearshore/offshore GIC set-ups, and more than 45 percent of their FTEs. Mature operations and middle-/back-office delivery presence in India give them a strong foundation on which to build their digital efforts. And it allows them to develop more integrated operations, technology, digital, and analytics solutions to address the evolving business needs of their parent organizations
  • Strong start-up ecosystem: India has one of the most evolved technology start-up ecosystems in the world. As of 2016, it had more than 4,500 tech start-ups employing a pool of around 100,000 FTEs. This situation not only allows enterprises to access next-gen technological solutions, but also to tap into the ecosystem to accelerate progress when additional resources are needed
  • Economies of scale and cost benefits: While cost may not be the primary driver, it certainly is a key differentiator. Budgets are always scarce, and needs are always plenty. India offers quality talent at lower cost and allows companies to drive low cost innovation and development

Digital Pinnacle™

How are the best-of-the-best enterprises and GICs leveraging India and other locations for digital? To expand our insights beyond the work we conduct with our clients, we’ve launched a Digital Pinnacle™ survey to learn more about successful GICs’ digital journeys.  We invite you to participate in the survey and/or to share your thoughts and experiences with us at [email protected] or [email protected].

Watch this space for more insights on GICs and for the deep-dive survey results.

GICs Accelerating the Automation Gear in Their Digital Drive! | Sherpas in Blue Shirts

In the beginning of the digital revolution, GICs were primarily used as hotspots for analytic services. But in their quest to deliver more value-added services to the parent organization, many are accelerating their ability to serve as strategic innovation partners by significantly expanding their portfolio of digital-focused activity. In fact, our most recent Market VistaTM report showed that digital activity in new setups and expansions jumped 900 basis points between Q4 2016 and Q4 2017.

Automation GIC blog_1

Like most organizations dipping their toe into the digital pool for the first time, GICs initially focused on automating processes through technologies such as Robotic Process Automation (RPA). However, in last couple of years, they have also started leveraging Artificial Intelligence (AI) to improve in areas such as customer experience, operational efficiency, risk management, and development of digital products and services for the market. After realizing the benefits of RPA and AI, some of the mature GICs are also now testing the waters for cognitive computing.

Here is a sampling of the digital use cases coming out of today’s GICs:

Automation GIC blog_2

Of course, changes and challenges abound in the rapidly evolving digital environment. Here are several that will impact GICs in 2018.

  • War for talent: Although they’re upskilling/reskilling their existing workforce, GICs will still need external talent for critical skills such as intuition and innovation, design thinking, pattern recognition, leadership, and problem solving. They’ll struggle to find this talent due to demand-supply imbalances.
  • Ecosystem partnerships: We expect GICs to accelerate their technology adoption through increased partnerships with service providers, technology vendors, start-ups, and educational institutions to deliver new forms of value, such as innovation, automation, and speed to market.
  • Delivery locations beyond India: While India will remain a favored location for enterprises to introduce new technologies, our GIC market activity tracking (see our recently released Market VistaTM report) suggests that other locations such as Brazil, Ireland, Israel, Romania, and Singapore may gain traction in near future. Israel is already progressing to support a range of digital functions such as IoT, AI, and data analytics for customer experience and cybersecurity services.

There’s no question that GICs have the ability to drive the digital agenda for their enterprises. To gain a deep-dive understanding of how they’re doing so today, and what they plan to do in the near future, Everest Group is conducting an online survey. This first-ever assessment will be based on our proprietary Pinnacle ModelTM, which identifies what the best performers are doing to achieve strategic business objectives and deliver increased value. We invite you to participate in this survey.

Six RPA Implementation Pitfalls GICs Must Avoid | Sherpas in Blue Shirts

Enterprises are increasingly leveraging their Global In-house Centers (GICs) to drive automation efforts across the globe. Per recent interactions with over 100 enterprises, GICs, and technology vendors to develop our new report, “RPA Implementation in GICs – Learnings and Best Practices,” we determined that more than 50 percent of enterprises are already driving or plan to drive their global RPA initiatives from Centers of Excellence in offshore/nearshore GICs.

While GICs are well positioned to drive RPA, the extent of success varies and the journey is not easy. To succeed, GICs need to avoid the following six pitfalls, and follow the lead of best-in-class GIC adopters of RPA.

Driving RPA without Enterprise Support

Successful RPA initiatives are a result of strong collaboration between enterprise and GIC leadership. Best-in-class GICs involve enterprise leadership from the beginning of their RPA journey.

Driving RPA in Functional Silos

Successful RPA initiatives involve stakeholders from relevant functions – e.g., IT, operations, risk, and legal – not just the operations team (recipients of automation solutions.) RPA initiatives in some organizations reside under the strategy and innovation function, rather than being led by IT or operations.

Driving RPA in a Decentralized Manner

Through centralized efforts, GICs are able to document and share knowledge across the enterprise, thereby, reducing cost, effort, and time to implementation.

Relying Excessively on Third-Party Vendors

Best-in-class adopters have a strong emphasis on developing in-house capabilities, for example, product development / customizing RPA solutions to suit process requirements.

Selecting Complex Processes at the Start

Successful GICs have avoided the temptation to automate high complexity processes or explore end-to-end automation, and instead have focused on transactional/repetitive/rule-based processes that are easier to implement.

Viewing RPA as a Silver Bullet

Successful GICs view RPA as one of the tools to improve operations by way of error reduction, productivity enhancement, and SLA compliance improvement. Process standardization and reengineering both play key roles in driving the effectiveness of RPA solutions.

Best-in-class GICs have evolved from execution to enabling business units across multiple locations to implement RPA solutions independently. To learn more about the best practices employed by mature GIC adopters of RPA, read our report, “RPA Implementation in GICs – Learnings and Best Practices.” And if you are driving RPA from your GIC, we’d love to hear your story. Feel free to share your opinions and stories on how your GIC is evolving in its RPA journey with [email protected] or [email protected].

Also, keep a lookout for our upcoming report on Enterprise RPA adoption, which leverages our robust Pinnacle Model™ methodology to compare enterprise performance on RPA adoption.

Finally, we’re in the process of conducting a first-of-its-kind survey, the results of which will reveal the state of digital adoption and what separates Pinnacle GICs™ from others. We invite you to join your peers and participate in this survey, today!

GICs Anticipate Significant Challenges in Hiring Vital Future Skills | Market Insights™

GIC skll shrtg

Skills such as intuition & innovation, design thinking, pattern recognition, leadership, and problem solving are likely to become highly critical to GICs for service delivery in the future

  • Most GICs believe that they will face severe shortages in availability of talent for these critical skills

The reason for the widening skills-gap include:

  • Limited supply of ready-to-hire talent for these skills
  • Increased competition among firms to hire the right talent
  • Low propensity to train and lack of effective ways of learning & development / training solutions for required skills

Visit the report page

Is Your GIC the Secret Weapon for Digital Enablement? | Sherpas in Blue Shirts

You might recall, back in December we identified digital agility as a key 2018 initiative. In that blog, we discussed how you can create business value by making things easy, reliable, and fast for your customers. The question I would ask GIC organizations for 2018: In realizing that goal, are you part of the problem? Or are you part of the solution?

Our research, Digital Maturity in GICs | Pinnacle Model™ Assessment 2018, seeks to answer those questions.

Most GICs started small and expanded over time as they proved their value. Now that most GICs have realized the fundamental benefits of labor savings, quality and process improvement, and – in some cases – business outcome improvement, it’s time for them to look to their next act.

Our central thesis is that a GIC can be a critical driver in building and running new digital competencies. But we want to hear from you about the functions and processes that are getting the most attention and investment. Which digital technologies are you focusing their efforts on? And what capabilities did you deploy to build out these capabilities?

There are plenty of digital surveys that you can participate in, so – why Everest Group’s? Because we take a different approach that results in more meaningful, useful outputs. Our Pinnacle Model™ approach asks questions about what the very best GICs are doing in terms of real impact and then correlate the capabilities required to achieve those results. And we go beyond the online survey, talking with some respondents to understand their journeys – what worked and what didn’t.

With that information in hand, we identify a set of Pinnacle Practices™ that you can consider deploying in your GIC.

Yes, there is a ton of hype around digital; let’s get beyond the headlines and talk outcomes and practices in your GIC.

Take the survey

Have a question?

Please let us know how we can help you.

Contact us

Email us

How can we engage?

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