Tag: GIC

Driving RPA from GICs? Learn from the Best-in-class | Sherpas in Blue Shirts

The shift towards a “digital-first model,” in the wake of technology-led disruption, has given GICs an opportunity to become strategic entities that can drive innovation across the enterprise, instead of an arbitrage-first-oriented low-cost set-up delivering back- / middle- office services at scale. A very positive move for GICs and the enterprises they support.

Robotic Process Automation (RPA), among other digital technologies, is gaining popularity across enterprises and GICs thanks to its many business benefits. And enterprises are increasingly leveraging their GICs to drive RPA usage. This is largely driven by factors such as GICs’ tighter integration with the core business, increased endorsement from the enterprise, shift toward insourcing, higher visibility to enterprise leadership, lower costs, and availability of talent.

So what factors enable best-in-class GICs to drive RPA programs successfully? We’ve identified eight:

How GICs drive RPA

Successful GICs, through dedicated RPA CoEs, have gone beyond exploring RPA technology for in-house consumption. From educating various stakeholders across the enterprise on capabilities and benefits of the technology, to executing RPA solutions across functions and locations, these CoEs are playing a key role in transforming processes across the enterprise. CoEs in best-in-class GICs have gone a notch higher, and are focusing on creating an ecosystem that enables businesses to independently explore RPA opportunities.

While GICs are well positioned to drive RPA across the enterprise, successful implementation requires dedicated focus on factors including governance and business continuity. They must also be on the lookout for advanced technologies, such as AI and cognitive, that can augment existing RPA technology and enhance overall automation business benefits.

To learn more about the best practices employed by best-in-class GIC adopters of RPA, please read our recently published report, “RPA Implementation in GICs – Learnings and Best Practices.” We developed it based on interactions with 100+ global enterprises’ GICs and a range of automation technology vendors.

If you are driving RPA from your GIC, I’d love to hear your story. Feel free to share your opinions and stories on how your GIC is evolving in its RPA journey directly with me at [email protected].

And/or, join in on our research on how enterprises design their GIC journeys to drive their enterprises’ digital agendas. Click here to take the survey; responses will, of course, remain anonymous.

Is Perceived Impact Hindering Your GIC’s Growth? | Sherpas in Blue Shirts

The GIC model has evolved significantly over the last decade, and is gearing up for the third wave of evolution – GIC 3.0, as some are calling it – driven by GICs’ strong desire to move away from the “arbitrage-first” delivery model towards a “digital-first” model.

Everest Group describes the journey to mature GICs as progressing through four different stages.

Journey to GIC maturity

GIC maturity for optimal business impact

Our research shows that best-in-class – or Stage 4 – GICs deliver up to six to eight times incremental value beyond arbitrage. Yet, while many of our engagements over the last few years have made it clear that most Global 1,000 GICs deliver value beyond arbitrage, very few track and measure their impact. When they do, it’s typically in a piecemeal, selective manner. Thus, their parent perceives that they are delivering limited business value, beyond arbitrage, to the enterprise.

By educating their parent on their impact, GICs can improve their credibility, and build a case to secure support for expanding their role.

So how can GICs measure and articulate the value they deliver?

We believe that putting a dollar number to the business impact is the most objective and effective way for GICs to showcase their true worth. The framework we use maps value drivers linked to savings, risk, and revenue, quantifying all forms of impact created by the GIC.

GIC business impact model

Here’s an example: a U.S. company’s GIC was able to prove to its parent that it delivered US$20 to 22 million in overall business impact, compared to incremental cost arbitrage of US$4 to 6 million, through increased effectiveness, greater efficiency, and revenue growth. This helped the GIC secure the parent’s buy-in on increasing the scope of functions currently delivered out of their GIC.

A comprehensive quantification facilitates measuring the overall business impact across businesses/LOBs supported by the GIC. A GIC can use these results to:

  • Enable better understanding of its impact/role in the enterprise
  • Guide internal thinking on prioritization of value-add opportunities
  • Map its maturity to the market
  • Achieve greater sponsorship from parent stakeholders

Contact us about Everest Group’s business impact quantification framework, and learn more about our research on in-house delivery models.

From Captive to Catalyst: The Next Milestone in the Global In-house Center Evolution Story | Sherpas in Blue Shirts

At a conference I attended recently on the role of global in-house centers (GICs) in digital and RPA, one of the speakers asked everyone to imagine what their organizations would look like in the future. The answers from a room full of enterprise and GIC leaders were varied and fascinating. My personal favorite was the one where robots will manage all forms of work while people relax on a beach, soaking up the sun, and sipping their piña coladas. Tempting as that sounds, I don’t expect it to happen anytime soon.

But what is happening now is a flurry of changes in the business environment globally. Amidst recent geopolitical developments in the U.S. and U.K., increasing talks of protectionist policies, the advancement of RPA and other service optimization technologies, and regulatory pressures affecting the global services sector, GICs and shared services centers find themselves at a crossroads. As the global services sector moves from an arbitrage first to a digital first delivery model, GICs have an opportunity to break away from the orthodox boundaries by taking the road less traveled, and enhance their role in enterprises’ global sourcing strategy.

Everest Group has seen first hand the evolving role of GICs, which has expanded beyond providing low- cost delivery to being agents of change – or catalysts – for enterprises’ back- and middle-office services.

Now, GICs are at an inflection point in their evolution journey, well positioned to take on this enhanced role driven by: increased endorsement from the enterprise and the shift towards insourcing; a strong foundation and ability to offer an insider’s view; tight integration with the existing core business; and strong adjacency with existing focus on driving efficiency and optimization.

What does the future of GICs look like?

Global Services - CatalystTo successfully undertake changes within their enterprises and redefine their role from captive to catalyst, GICs need to:

  1. Drive business impact and thought leadership
  2. Develop global leaders and talent/skills
  3. Play a pivotal role in the transformation of processes and service delivery
  4. Lead organizations through digital disruptions in global services.

Here are Everest Group’s recommendations on how GICs can capitalize on this opportunity:

  • Redefine the art of the possible, and adopt a business outcome-oriented mindset, which is significantly different from the current delivery mindset
  • Identify and prioritize investments, such as their choice of functional and technology segments, and the best approach to gaining more than just incremental growth
  • Change their talent model (e.g., hire for learnability, strengthen culture of innovation) and operating model (e.g., different onshore-offshore collaboration models due to agile/DevOps) to catalyze the digital agenda.

Our newly renamed CatalystTM subscription research program (formerly known as Global Sourcing) provides GICs and enterprise clients with actionable insights to navigate through the evolutionary journey from captive to catalyst. Benefits of a Catalyst subscription include:

  • Industry-leading research and viewpoints on multiple topics relevant to GIC market
  • One-on-one briefings with Everest Group analysts and SMEs
  • Exclusive invitations to GIC events – including webinars, roundtables, and virtual networking sessions – organized by Everest Group

Learn more about our work in the GIC space, and see details about our Catalyst research program.

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