The Global Capability Centers (GCCs) are no longer just offshore support centers but have transformed into major business development and innovation drivers. Organizations are increasingly relying on GCCs to operate quickly, with good quality, and flexibly. The results of the Deloitte year 2024 survey show that more than 70 percent of large enterprises are considering the GCCs as a means of boosting technology, managing processes, and enhancing digital skills. As companies make this commitment to pull off better and quicker services, GCCs will still be there as their stronghold.
Let’s take a look at how GCCs are altering businesses and, more importantly, why they are seen as the main drivers of change among companies.
Understanding Global Capability Centers
A Global Capability Center is an owned, internal branch of a company that supports the organization in executing important activities in the categories of IT, finance, analytics, design, or product development. In contrast to outsourcing partners, GCCs are fully owned and operated by the parent. This will provide greater control, trust, and alignment with organizational objectives.
GCCs are built on a foundation of expertise and intelligent systems that reside within a common structure. They lead to cost savings for companies, but also contribute to deep experience and knowledge-building within organizations. They have gradually transitioned from executing routine activities to becoming essential centers of automation, digital innovation, and intelligent technologies.
How GCCs Transform Business Operations?
Business success is based on three crucial pillars: the workforce, technology, and process. The Global Capability Centers (GCCs) are the glue that connects all three pillars for smoother, smarter, and faster business operations.
Enhance Operational Efficiency
By centralizing support and technology functions, GCCs eliminate additional layers of work and create greater consistency in systems. This leads to lower costs, higher service quality, and a method for everyone to experience the same value at work. As a result of these efforts, work gets done faster and more accurately.
Accelerate Innovation and Digital Transformation
Today’s GCCs are innovation labs. They experiment on projects related to automation, AI, and cloud solutions that help the business get smarter. These centers foster advancement through experimentation with new tools before rolling them out in all markets. This innovation model can accelerate digital transformation and boost competitiveness.
Improve Agility and Scalability
Markets evolve quickly. Global Capability Centers (GCCs) can help companies react rapidly to changing market conditions without missing a beat. GCCs help to easily scale operations up or down while maintaining steady state operations, whether it be for team expansion or new service offerings.
Strengthen Governance and Data Security
Since GCCs are typically managed directly by the client organization, data privacy, data protection and compliance are typically enforced more rigorously. A centralized governance model ensures there are compliant and uniform protections across geographies to protect sensitive data and intellectual property from various external threats.
Enable Data-Driven Decision Making
GCCs often have analytic teams located at their sites that can directly and indirectly study data and disseminate useful insights to inform decision-making. Whether for planning expenses or strategizing in new markets, these insights help organizational leaders develop or hone their decisions based on fact, not intuition.
Future Outlook for Global Capability Centers
As AI, automation, and remote work continue to rise, GCCs are going to take a bigger part in the future than they have in the past. Not only will these centers make global operations easier, but they will also contribute to the making of business strategies, product design, and sustainability goals. Companies that view GCCs as partners in growth, rather than cost centers, will enjoy increased success for innovation and sustainability.
Conclusion
Global Capability Centers are changing the way businesses work, how and in which areas they grow, and how they compete. They let you exist as a global company while focusing on quality and innovation.
If your company is intending to grow or establish a Global Capability Center, Harjai Technologies is ready to help. With deep expertise in IT consulting, automation, and digital strategy, Harjai Technologies helps companies establish or develop agile and high-performing Global Capability Centers in order to deliver true value.