Global Capability Centers (GCCs) have changed the direction of an organization’s operations. It provides better flexibility to meet changing customer requirements and expectations in the coming days. GCCs pave the way toward acquiring a talented workforce and advanced technology-equipped machines to streamline the flow process. It will open the way toward lean manufacturing, innovation, and cost-effective operations. Digital transformation is currently the most workable way for business success. Meeting the deviation of market trends and customer-changing mindsets has pushed this approach forward. This is a world-class practice of global talent hunting according to their expertise and requirements, allocating them for better results, and collaborating among manpower of two countries.
In this article, you can read the captivating and significant approach of GCC, and it is changing and sharing the economic boost while keeping support and power-delegation.
What is the Global Capability Centre?
Global Capability Centre is an Institute built by organizations globally to maximize the use of global talent, expertise, and resources. It primarily provides services related to research and development, information technology, business solutions, engineering consulting, etc. GCCs help companies enable reduced operation costs, improved efficiency, dynamic skills, and execution.
Growth Stages of GCCs
1- Emergence of GCCs
The Global Capability Centre came into existence in nearly 2000. The mission is to lead organizations toward cost-effective operations and global talent exchange. The information technology service area gains major hype when it comes to work.
2- Diversification of GCCs
The global capability center expanded its services to other fields beyond international technology in this era. The main focus areas were Finance, Accounting, Data entry, and customer support services. Through GCC’s company, we were getting better efficiency and reduced prices.
3- Strategic Value of GCCs
GCCs have changed the way they work by transforming them toward qualitative output. It leads the efforts and works for innovation and process improvement. It was to support the organization by achieving its mission and values.
4- Digital Transformation by GCCs
The boost of digital technology has attracted much attention due to its pros. GCS Transform works on artificial intelligence and automation.
5- Future trends strategic partnership
Global capability centers form a result-oriented strategy with startups, investors, industry owners, and scale businesses. Global capability centers are working to improve, digitize, and optimize to deliver better quality.
What does the capability center do?
The functions and services of the global capability center have the ways of working for multiple types of organizations. It will help you fully and effectively utilize your capacity. Its prime areas of service are:
- Information Technology
It covers all the services related to information technology, like that cloud computing, cyber security, and infrastructure management. It delivers better optimal results to facilitate its users.
- Research and development
Research and development adopt practices toward innovative and qualitative output day by day. It works for better and more advanced products.
- Engineering services
It offers service-related application software development, inspection and testing, decision-making, and design operations.
- Finance and Accounting
It delivers an effective service for finance and accounting. It helps to alleviate financial planning, tax treasures and budget planning and monitoring.
- Analytical and digital management
It will be implemented in almost every kind of organization. We offer data analytics and data management systems. It will ensure your close and strict control of input and output. That will act as a performance indicator to do on time and better decision making.
- Customer support system
It offers a technical support system and a help desk. It will solve customers’ challenges with meaningful facts and figures.
- Human Resources (HR)
HR is an integral part of every kind of organization. The service offers to effectively operate and execute HR functions: talent acquisition, training and empowering employees and monitoring day-by-day activities and duties.
- Procurement and supply chain management
It serves to manage supplier relationships between customers and buyers for qualitative inventory. Inventory management needs to be met on time to produce productive output.
- Risk management
Service related to risk plays a vital role in the organization. It will be more disastrous than expected if I don’t control time. Cyber security and relevant applications help reduce the number of attacks on essential company data.
Importance and benefits of GCCs
Global capability centers became essential to business strategy, with just 30% of Forbes 2000+ companies establishing their GCCs. It paves the way toward a better growth environment and opportunities.
Here are some valuable benefits that it will offer:
- Concentrate on core business operations for better efficiency and productive output
- Ease the process of global exchange of talent. So, it will offer dual benefits.
- Reality-based data and information improve the decision-making process of an organization.
- One over fourth-time reduction in operations cost is possible.
- A teamwork-based environment is needed for better control and monitoring.
- Equal opportunity for all countries’ people to learn, grow and earn money worldwide.
- R&D helps to smooth lines the operations process and product performance with innovation.
Mission and Vision
To support the world’s top-ranked organization in optimum business transformation. It will utilize the full potential and abilities of global talent. We will lead them to growth, improvement, innovation, and scale up their business. Our key motive is to deliver productive solutions in advisory, talent, and resources management services. We will drive them toward modernization and digitalization.
GCCs models
GGCC is designed and explicitly executed based on the desire, need, and objective of the target organization. Each model has its pros and cons.
- Captive model
It will operate as a sub-part of an organization. They will ensure the assurance from that organization in terms of strategy, operations, and decision-making process. It has been established in offshore locations to make access to a talented workforce cost-effective and more manageable. Its mission and vision should be the same as the organization for better growth.
- Shared service model
In this model, multiple companies of the same interest and work share the global capability center. It covers all kinds of organization services in its various sections. It will help to increase standardized, productive, cost-saving operations.
- Build Operate transfer model
It is a separate organization which works independently. It will offer better competency and the most effective model. First of all, organizations should be sure of the suitability and output of the BOP model. After the alliance, it will work under the Supervision and instructions of the organization to achieve desired objectives and outcomes.
Global capability centers become an essential part of all organizations worldwide. Every organization in the world has two main objectives. One is customer requirements, and the second one is cost-effective operations.
So, the global capability center expanded its service to almost all kinds of organizations. It covers all service-based and product-based industries. It provides valuable solutions for productive outcomes, standardization, advanced and innovative products, cost savings strategies, continuous improvement systems, and quality.
It will thoroughly study your current potential and how much of it has been utilized. Sometimes, you don’t judge your potential well, but other experts will do. So, it ensures you work compressively for better utility of your resources. The global talent-sharing approach also duplicates the rules of equality. People from under-developed organizations work with top players in their field. It will help ease the digital transformation process for better business success.
Frequently Asked Questions
1- What is a Global Capability Center (GCC)?
A Global Capability Center (GCC) is an organization’s specialized hub to utilize global talent, resources, and expertise. These centers focus on delivering critical business services like information technology (IT), research and development (R&D), engineering, finance, customer support, and more. The primary aim is to enhance efficiency, reduce costs, and drive innovation while maintaining high-quality standards.
2- What are the motives for using GCC?
Global Capability Centers are established by organizations worldwide that use world talent, significant resources, and their relevant expertise. They are typically part of giant corporations and provide various services such as research and development, IT services, business process outsourcing, engineering services, and more.
Wrapping Up
GCCs represent the future of business: agile, efficient, and globally connected. By leveraging the power of a diverse workforce and cutting-edge technology, companies can streamline operations and set the stage for sustainable success. Whether through enhancing R&D efforts, managing complex IT infrastructures, or optimizing supply chains, GCCs catalyze businesses seeking to scale and thrive in the global economy. As the business landscape evolves, GCCs will remain central to how companies drive innovation, meet market demands, and achieve long-term success. By fully understanding and utilizing the capabilities of GCCs, organizations can unlock new opportunities and lead the way in their respective industries.
