Tackling the three hidden mistakes when planning a GCC
The decisions that determine whether a global capability center (GCC) succeeds or stalls are rarely the ones that get boardroom attention.
The decisions that determine whether a global capability center (GCC) succeeds or stalls are rarely the ones that get boardroom attention.
The short version
- With the number of GCCs in India growing by nearly a third since 2021 – more than 500 of the Forbes Global 2000 operate in the country – the choices that underpin a successful launch are treated as operational detail and left too late in the process.
- Consider that nearly two thirds (65%) of GCCs are “average performers” according to a Boston Consulting Group study , with a further 8% underperforming.
- Just four out of every 50 qualify as “top performers.” “How do you bring everything under one roof?” asks Murali Krishnan, AVP & Head of Business – Enterprise Network at Tata Communications.
What happened
“Otherwise, when these things are highly distributed, it has a dilution factor with respect to what you potentially want to achieve – for example, if you are going to go through an artificial intelligence transformation. Having your entire knowledge in one place makes a lot more sense for an enterprise rather than having a distributed global workforce.” This reflects the shift in what a GCC is expected to deliver.
Why it matters
While cost arbitrage got the GCC operating model started, transformation and speed-to-market are now driving investment.
Summary by Nerd News Network. Read the full article at Network World via the links above and below.