GCC/GIC Challenges

As enterprises benefit from GCCs, there are also some inherent challenges which companies need to be mindful of. Enterprises which have established GCCs, have done so to fulfil an organizational need such as cost, talent availability, time-zone benefits and/or process efficiency. However, once the need is fulfilled, it requires sponsorship from the highest authorities to enable the enterprise to continue to utilize the GCCs and further mature the capability. Time is of essence if an enterprise wants to derive an ROI from the Centre. The implementation of the “RIGHT” operating model is another issue which enterprises normally face. Large and complex enterprises need to understand processes, platforms, and capabilities before establishing GCCs. Enterprise-wide realignment or to breakdown processes into subsets, or to handover end-to-end activities – these are questions which need to be answered by all enterprises before they embark on offshoring and/or outsourcing. Understanding local nuances, culture and business practices is always tricky and needs diligence.

Enterprises need to be attentive to on-ground challenges before they create plans. Finally, establishing a GCC is easy; but enabling and empowering them is the challenging part. “What should a GCC do?” is an important question to answer. Should it simply follow instructions and perform repetitive tasks, or can it add value by driving the organization’s transformation agenda? Ideally, a GCC needs to be able to take its own decisions within the confines of enterprise-wide guidelines; they need responsibility; and they need resource allocation. Remember, GCCs need to be established to meet the enterprises’ need rather than being tied up in a bureaucratic approval process for every requirement.