Global Capability Centers as catalysts for Human Capital impact and a continuous digital evolution

Global Capability Centers (GCCs) have been driving human capital impact globally. Initially established for cost savings, these centers have transformed into critical innovation hubs, strategic excellence, and leadership development.

At YASH Technologies, we have witnessed this evolution, and as a trusted partner, we have played a crucial role in accelerating the digital transformation journeys of many GCCs. This blog, therefore, explores the multifaceted role of GCCs in driving human capital impact and some key ways technology partners such as YASH help contribute to this dynamic ecosystem.

The evolution of GCCs

The concept of GCCs has significantly evolved over the years. Initially, they were seen as offshoring units designed to leverage cost advantages by relocating back-office functions to low-cost regions.

However, GCCs have undergone a remarkable transformation over the past three decades. They have evolved from single-function shared service centers (SSC) to multifunctional hubs encompassing various activities, including procurement, sales enablement, project management, marketing, legal services, artificial intelligence (AI), and data analytics. This transformation is driven by technological advancements, the need for digital-native talent, and a strategic shift from cost-saving to value creation.

Challenges faced by GCCs

While GCCs have made significant strides in driving human capital impact, they face several challenges that need addressing to unlock their full potential.

A primary issue is the supply-demand gap in skilled talent, where fresh graduates often require extensive training to meet GCC requirements. A recent report highlights a “considerable gap between skills of fresh graduates and expectations from these graduates,” with most new hires needing six months of training to become productive[1]. Significant challenges include developing a robust leadership pipeline, retaining top talent amid high attrition rates, and fostering an inclusive culture in a multicultural environment. Despite progress, continuous efforts are needed to enhance inclusivity. For instance, in India, ~40% of the nation’s most inclusive companies are, in fact, GCCs.

Technological advancements also pose a challenge, requiring constant investment in new technologies and skilled personnel. Regulatory and compliance issues, especially in data privacy and intellectual property, add complexity, with a lack of robust frameworks deterring investment. Infrastructure and operational efficiency are ongoing concerns, as many regions lack support for large-scale operations. Addressing these challenges is crucial for GCCs to maximize their potential and continue driving human capital impact

Driving human capital impact

Another report says, the GCC market size has grown to USD 46 billion in FY 2023, with over 1580 GCCs established nationwide[1]. This growth is fueled by the increasing demand for skilled talent, agile service delivery, and the adoption of cutting-edge technologies. Here are some ways GCCs are driving human capital impact while addressing the growing demands mentioned:

1 Talent development and upskilling

One of the most significant contributions of GCCs is their role in talent development and upskilling. GCCs serve as talent incubators, providing employees with opportunities to acquire new skills, gain exposure to global best practices, and work on innovative projects. This continuous learning environment fosters a culture of excellence and prepares employees for leadership roles within their organizations. At YASH Technologies, for instance, we have been instrumental in helping GCCs design and implement comprehensive talent development programs. Such tailored engagement models focus on continuous learning, academic partnerships, and mentorship programs that groom future leaders from the ground up.

2 Leadership development

GCCs are crucial to groom the wave of leaders of tomorrow. By providing exposure to complex projects, cross-functional teams, and strategic decision-making, GCCs create a robust leadership pipeline. A structured approach to leadership development, coupled with mentorship and hands-on experience, enables employees to develop the skills necessary to lead global initiatives. We at YASH have also supported GCCs in their varied leadership development initiatives by offering tailored programs focusing on strategic thinking, problem-solving, and organizational navigation. Our expertise in leadership development ensures that GCCs can cultivate a cadre of leaders capable of driving transformation and achieving business objectives.

3 Inclusivity and diversity

GCCs have made significant strides in promoting inclusivity and creating opportunities for all employees, regardless of gender, background, or ethnicity. Programs such as structured post-maternity returner initiatives and diversity and inclusion training are commonplace in GCCs, contributing to a more equitable and dynamic work environment. It is best to design programs that provide mentorship, upskilling, and job flexibility to enhance inclusivity and diversity initiatives, ensuring that diverse talent is attracted and retained. Our commitment to fostering an inclusive culture aligns with the broader goals of GCCs to create a supportive and diverse workforce.

4 Innovation and ecosystem development

These centers have become hotbeds of innovation, fostering collaboration between global teams and local talent to develop solutions that address complex business challenges. Tech plays a pivotal role in facilitating innovation within GCCs. In particular, YASH’s expertise in strategizing and executing global digitalization initiatives helps GCCs simplify processes, enhance capabilities, and adopt new technologies. We promote a continuous improvement and operational efficiency culture, ensuring that GCCs remain at the forefront of innovation.\

Accelerating the digital evolution of GCCs with YASH

The role of GCCs in driving human capital impact is multifaceted and transformative. By focusing on talent development, leadership grooming, inclusivity, and innovation, GCCs have become pivotal players in the global business landscape. YASH is proud to support GCCs in their journey towards digital transformation, providing the expertise and solutions needed to achieve their goals. As businesses continue to navigate the complexities of the digital age, GCCs will remain essential in shaping the future of work and driving human capital impact on a global scale.

For more information on how YASH Technologies can help your GCC accelerate its focus on digital transformation, contact us at info@yash.com.