Nexdigm, in association with USIBC (US-India Business Council) and ICICI Bank, Canada, hosted its second installment in a four-part webinar series on "Global Capability Centers – India as the preferred destination." This webinar concentrated on the key operating models and the evolution of Global Capability Centers (GCCs) while covering essential aspects related to a cyber-resilient operating framework.
The webinar was highlighted by experts discussing the choices and benefits of various GCC operating models.
Eric Sweitzer, CFO of Senneca Holdings, shared his GCC experience. He said, "Giving up control (is part of the process) and that’s uncomfortable. To get through that, you’ve got to trust your partner, and that takes time. The benefit is that you get to focus on your business which creates value. The GCC solution gives the business more opportunity to create value, and then ultimately, as we need more resources, the GCC can offer up additional resources and solutions to create more value. And that really is the journey with GCCs."
Suhail Akhtar, Head of IG India, talked extensively about building a cyber-resilient GCC. He said, "The challenges that GCCs face is not very different from the challenges faced by the parent organization. One of the things that we started doing is having a zero trust security model. The zero trust model is based on a strict verification model, and you never trust before authenticating. Data protection, of course, is another thing that is part of the zero trust architecture. Therefore, it is important to categorize your corporate data so that you only give access to data to the people who really need it."
As background to the topic, GCCs transitioned from cost generators to strategic business enablers and value generators. Initially, transactional activities, headcount, and budgets were offshored with the aim of cost reduction. But as GCCs matured, they grew in size, achieved operational efficacies and have become centers of excellence.
GCCs now go beyond improving operational efficiencies to include creating value and innovating new solutions. The panelists also discussed the various GCC operating models, namely; Captives; Build, Operate, and Transfer (BOT); and Managed Services. They mentioned that Captives and BOT models help in implementing an expedited go-to-market strategy, whereas the Managed Services model helps organizations achieve economies of scale in the long run.
The Indian GCC market is estimated to be worth USD 36 billion in revenue this year and is expected to reach over USD 60 billion by 2025 with 70% of India's current GCCs belonging to US-headquartered companies. The panelists also emphasized cost efficiencies and the sheer talent pool India offers when considering setting up a capability center in the first webinar.