Building Blocks of a GCC
June 26, 2024
The Building Blocks of a Global Sourcing program
seems to be a ‘line item’ in every strategy meeting agenda now. It has been getting more attention than ever from industry experts, consultants and companies. It is taking center stage and is being hailed as an imperative for companies because of its
The model has proven its merit over the years. Cost arbitrage leading the way with skilled talent availability catching up with multitude of factors like innovation, value addition, operational efficiencies adding to the already strong business case. It is being widely used by companies across sectors moving beyond the BFSI sector, which has been the early user. Today the users of global sourcing can be broadly categorized as:
Early adopters, who have been able to move up the value curve and redefine their ask of their global sourcing programs
New users who are learning the ropes and moving through the maturity curve probably faster with so much learning and best practices available to build upon
The uninitiated – there are those who are still evaluating the model and are looking to get started We at Gloplax, with our in-depth hands-on experience and expertise have understood that the success of a global sourcing program depends upon the choice of the “right” building blocks to support a global sourcing strategy.
The diagram below is useful in understanding the stacking up and organizing of these building blocks:
When thinking about your global sourcing strategy, multiple aspects need to be thought through, the image above gives you a peak at how this can be organized. This will help reduce the complexity of building and running the global sourcing program by understanding the suite of capabilities which allows one to choose the “right” building blocks to support the strategy. A well-designed program, supported with the right frameworks/tools, is critical to success. The Global Sourcing program needs to consistently provide the expected level of Effectiveness, Efficiency, and Experience. We enable companies to build and operate high-performing global sourcing platforms by establishing sustainable talent ecosystems, developing strong cultural alignment, and adopting robust governance & risk management by leveraging our transformational capabilities through a focus on effectiveness, efficiency, and experience.
