Tag: shared services centers

The Evolving Role of Retail and CPG Shared Services Centers | Blog

Over the past few years, India has emerged as an attractive destination for both the expansion of existing shared services centers – or Global In-house Centers (GICs) – and new GIC setups by retail and CPG enterprises. This change is due largely to access to skilled talent, especially for digital services, and the relatively low operating costs. Today, India accounts for 20-25 percent of offshore retail and CPG GICs, of which roughly 50 percent were set up in the last five years.

While these GICs initially focused on the delivery of services such as IT, HR, F&A, and contact center, the need for digital integration to obtain faster results and innovation is driving retail and CPG GICs to help deliver core operations by leveraging next-generation technologies such as AI, advanced analytics, and automation.

In recent years, India-based retail and CPG shared services centers have started to deliver complex, judgment-intensive work such as sourcing and procurement, merchandising and inventory planning, sales and marketing, supply chain and logistics, and customer experience management; this work was earlier managed in-house by enterprises themselves.

In fact, best-in-class GICs have been aggressively pushing the envelope by building capabilities to deliver niche/complex processes for core operations. For instance, an American multinational CPG that set up its GIC in India in 2019 focuses only on the delivery of core services such as consumer science, packaging, and product development from the facility.

And that’s only one among many examples of enterprises leveraging shared services centers to deliver core functions. In the sales and marketing function, for example, India-based retail and CPG GICs are delivering some of the most niche/complex processes within the function. Here’s a look at these processes and the extent of GIC adoption for process delivery.

Processes managed by India based retail and CPG GICs

As you see, India-based centers are increasingly delivering processes like customer engagement and site merchandising, and there’s significant delivery potential for processes such as promotion management, marketing communication, and channel management.

Of course, the availability of skilled talent is key for the successful delivery of these core processes from India. Even when most companies globally face an acute talent shortage, best-in-class India-based GICs have been quick to scale up niche talent to deliver both core operations and digital services by hiring resources from adjacent industries. For instance, an American retailer’s shared services center has hired employees with TV, visual media, and digital content experience from the domestic advertising industry to support less-adopted processes such as promotion management and marketing communication. The GIC plans to establish structured upskilling programs to familiarize these new hires with global delivery operations.

Over the coming years, we expect this trend of GICs delivering core operations to continue and, in fact, increase significantly. Doing so will drive accelerated innovation, as the centers’ talent will have the advantage of deeper business context.

To learn more about the growing synergies between enterprises and GICs, please reach out to Bharath M or Ranjith Reddy.

Top Concerns in Talent Management for Shared Services: Lessons to Future-Proof Your Workforce | Webinar

60-minute webinar held on Tuesday, February 4, 2020 | 9 a.m. CST, 10 a.m. EST, 3 p.m. GMT, 8:30 p.m. IST

Download the Presentation

Changing expectations for how Global Business Centers deliver value and innovation, combined with the increasing adoption of intelligent automation technologies, are dramatically impacting the talent equation across shared services and outsourcing activities.

To address these challenges, this session will provide you with actionable insights on related topics, including:

  • Workforce planning for the future
  • Talent scarcity challenges and options
  • Getting more from the existing workforce

We will answer the following questions:

  • Why and how are talent needs evolving?
  • What are the options to address future talent needs?
  • How do you balance the talent demand-supply dynamics?
  • What are best-in-class organizations doing to cultivate a future-ready workforce?

Who should attend and why?
This webinar will provide leaders of Shared Services, Global In-house, and Global Business Centers with critical insight around current vs. future talent needs, how best to navigate shortages in skilled talent, and key takeaways from best-in-class talent management practices.

Can’t join us live? Register anyway!
All registrants will receive an email (typically within 1-2 business days of the live delivery) containing the link to session slides and on-demand playback. In addition, we’ll also provide details on how to take advantage of a special offer to be made during the live delivery.

Presenters
Eric Simonson
Managing Partner
Everest Group

Rohitashwa Aggarwal
Practice Director
Everest Group

Why Pharma Companies View their Indian Shared Services Centers as Growth Partners |Blog

India is clearly becoming the “it” destination for pharmaceutical companies’ shared services centers (SSC) – or Global In-House Center (GIC) – organizations. Why do we say this? Because global pharmas with headquarters in the U.S. and Europe employ more than 11,000 FTEs employees in their India-based shared services centers to deliver not only table stakes transactional finance and HR services but also highly complex processes across all stages of drug development, including drug R&D and clinical trials.

What’s India’s appeal? There are four factors.

Established/Mature Location for Global Pharma Services Delivery

India is a time-tested, proven GIC destination for a wide range of industries. Many of the world’s leading pharmaceutical companies started delivering their global services support operations from India back in early 1990s. Now, pharma majors like AstraZeneca, Eli Lilly, and Novartis are delivering complex, judgment-intensive services such as product R&D, biostatistics, and clinical trials site management from their India GICs. Hyderabad, Chennai, and Bangalore are the preferred locations, housing more than 80 percent of the pharmaceutical GIC talent.

Skilled Talent Pool

Talent availability, at scale, is one of India’s strongest value propositions. In recent years, many pharma companies have been able to successfully scale their delivery teams supporting diverse functions such as R&D, commercials, IT, and finance. For example, a leading pharma GIC houses 2,000+ resources providing IT services for various pharma functions. And multiple other pharma SSCs have scaled teams (400+ resources) that support R&D services, and dedicated resource groups comprised of doctors, PhDs, and biostatisticians, for complex drug R&D processes like development of computational solutions for analyzing clinical trials.

Opportunities for Cross-functional Collaboration

India’s availability of diverse talent profiles at scale allows India-based pharma SSCs to support multiple functions. And because many of them house IT resources with R&D and commercial business teams, they have multiple opportunities to collaborate on and insource IT work for drug R&D (e.g., to build IT platforms for drug development and IT services for lab support), and commercial operations (e.g., IT services for finance.) The value of this collaboration? Tighter integration of functions, better understanding of business requirements, and faster execution.

Mature Market for Digital Services Delivery

Leading India-based pharma GICs are working on digital initiatives including analytics and automation, and some are serving as global automation CoEs for their parent enterprises. Many are developing analytical tools for marketing & sales operations, competitive intelligence, and incentive planning. They are also investing heavily in automating less complex and high-volume transactional processes such as expense management, purchase order creation, offer letter generation, résumé screening, and management reporting, and deploying RPA bots to read files, extract data, and report adverse events. As part of the broader digital agenda, some centers have also started exploring the uses of artificial intelligence/machine learning to recruit patients and select sites for clinical trials, and for channel sequencing and optimization in their enterprise’s sales & marketing function.

Going forward, pharma companies not only expect their India SSCs to grow in scale and expand the scope of their process delivery, but also play a significant role in their digital transformation journeys by leading initiatives across all stages of the product R&D lifecycle. To satisfy these expectations, the GICs need to build deep domain capabilities and acquire or train talent to deliver increasingly complex, higher up the value chain services and next-generation digital initiatives.

To learn more about why pharma companies consider India their preferred service delivery destination, please read our recently published report, “Healthcare and Life Sciences – GICs in India Fast-tracking Enterprises’ Digital Agenda,” or connect directly with the report authors Anish Agarwal, Bharath M, and Rajeshwaran Pagalam.

Does Your Shared Services Center Need an Innovation Team? | Blog

In order to evolve from cost enablers to strategic partners that can drive competitive advantage, shared services centers (SSCs) – what we call Global In-House Centers (GICs) – must support their parent enterprises’ innovation agenda. And whether innovation means one, more, or all of the following to their enterprise, SSCs are quickly recognizing that creation of their own innovation team is one of the key ways they can deliver on that strategic requirement.

Types of innovation initiatives

11

What is an innovation team?

An innovation team is a group of dedicated resources mandated to evangelize innovation within the organization. The members typically have innovation-specific competency and relevant experience, and are unrestricted by business-as-usual constraints.

While ad-hoc or informal innovation teams used to be the norm in most GICs, the forward-thinking ones realize that a formalized approach is becoming essential for long-term success.

SSCs’ innovation teams influence strategy, capabilities, and culture

Based on our discussions with and analysis of around 800 GICs spread across offshore geographies, we’ve grouped innovation teams’ focuses and capabilities into three areas.

Shaping the enterprise’s overall innovation strategy

SSC’s innovation teams help shape their enterprise’s innovation agenda by enabling decisions on key themes such as: improving the process/product/service mix, enhancing the customer/employee experience, and revamping the business model; impact areas like cost savings, risk management, and revenue generation; and innovation partnerships with start-ups, academic institutions, etc. For example, one GIC’s innovation team was given a mandate to ideate and develop innovative solutions/products to better engage customers. It led all the stages of the innovation journey (from ideation and concept testing to detailed design and development) to develop the enterprise’s flagship mobile payments app.

Enhancing capabilities by improving skills, tools, infrastructure, and technology

SSCs’ innovation teams support and lead capability and ecosystem development. Areas they become involved in include setting up the physical work environment including innovation labs, garages, and digital pods, and developing new methodologies, frameworks, and tools. For example, one GIC we work with – that of a leading U.S.-based financial services firm –assisted in development of a cloud-based, compliant platform for instant communication and content sharing. The platform is used by more than 20,000 employees across the organization for real-time collaboration.

Fostering a culture of innovation

Beyond their primary responsibilities of supporting core, business-as-usual activities, GICs’ innovation teams often serve as “innovation champions” or “innovation ambassadors” to shine a spotlight on best practices and key pitfalls to avoid. These teams primarily consist of employees embedded within the GIC’s business units/functional teams, and focus on domain-specific innovation. This enables direct development of an innovation culture in delivery teams. For example, in one insurance company’s GIC, the innovation team is mandated with promoting innovation at the grassroots level. So, it organizes trainings, workshops, and competitive events.

Innovation team make-up

At a broad level, innovation teams are comprised of the following key roles:

  • Innovation champions: Leadership members (typically C-level executives, and functional/business unit heads) for providing strategic guidance
  • Program managers: Senior management members and/or dedicated managers for driving innovation programs/projects
  • Process experts/technologists: Experts with deep knowledge of product, technology, and tools
  • Strategists: Typically, tenured senior resources with extensive experience with innovation programs and solid domain knowledge.

Of course, some SSC’s also include other roles, some very niche and company-specific, in their innovation teams.

Size your innovation team to your specific needs

Our research found that SSCs’ innovation teams are typically comprised of five to 20 dedicated FTEs, spread across the enterprise and the SSC. A relatively small number of GICs have 20-50 or more FTEs that are specifically part of their innovation team.

While most GICs have a lean innovation team, we encountered multiple instances of recently bulked-up teams. Interestingly, there is a limited co-relationship between revenue/size of the SSC’s parent enterprise and the size of its innovation team. What tends to impact the size of the innovation team is the extent of the innovation focus, the level of innovation maturity, existing structures for driving innovation, and broader business requirements.

There is no one-size-fits-all approach. When designing your SSC’s innovation team, you should start by determining what aligns well with the existing structure and caters to evolving innovation needs. You can customize its size and composition once it’s up and running.

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.