Global Capability Centers

How IT Services Providers Can Accelerate the GCC Journey from Setup to Scale

By: Nalinikanth Josyabhatla

Publish Date: December 6, 2024

Global Capability Centers (GCCs) are established by large businesses to capitalize upon worldwide talent, resources, and infrastructure. They oversee various services, including research and development (R&D), underwriting, software product design, engineering, application and Infrastructure management, and voice/non-voice support for customer service. Besides reducing operations costs, GCCs improve efficiencies and expand the global impact of their parent companies.

According to a NASSCOM report, the market size for GCCs in India crossed $46 billion in FY2023 at a CAGR of over 11%. While they have become a pivotal force in the economy, to sustain their momentum, these organizations need to accelerate their ability to drive digital transformation by leveraging the technologies that make them innovation leaders in the domains they serve.

By partnering with an experienced IT service provider, a GCC can cost-effectively implement cloud platforms, data analytics, Artificial Intelligence (AI), machine learning, automation, and other tools to deliver value and institutionalize their clients’ transformation journeys. This partnership empowers GCCs to accelerate digital transformation and stay ahead in their respective domains.

Here’s how IT service providers facilitate the end-to-end establishment of GCC setups once the parent organization has chosen its preferred location:

  1. Infrastructure management: New disruptive technologies can make or break an enterprise. Besides having the right talent, an organization must also navigate the digital landscape to run the essential systems that support its service model. Experienced IT service providers offer tailored solutions for legacy tools’ modernization, server administration, application management, digital foundries, and other high-performance software products to support GCC’s workflows. The technology companies that are certified partners of SAP, Microsoft, and AWS can be hired for Infrastructure-as-Service management to keep the deployment of IT resources more cost-effective.
  2. Cybersecurity: The aggressiveness and efficacy of cyber crimes have grown in the digital age even as implementing solid defenses against ransomware, data breaches, DDoS, and other threats has become more complex and costlier. GCCs increasingly invest in digital transformation and cloud adoption. They can leverage IT service specialists to provide fully managed, modular cybersecurity measures to hunt for, detect, and thwart cyberattacks. Their solutions for cyber risk intelligence, incident response, zero-trust architecture, identity, access management, and multi-cloud security can enable GCCs to protect sensitive data. Their knowledge of industrial regulations across regions can be instrumental in helping GCCs meet compliance standards and foster stakeholder trust.
  3. Cloud services: Today, the cloud offers more than technology. They present an opportunity for GCCs to reinvent processes and improve user experiences. By working with a managed IT services team, organizations can identify the areas where private, public, and hybrid cloud will create sustained advantages. This can accelerate the development of cloud-native applications, deploy next-gen Software-as-a-Service (SaaS) solutions, and capitalize upon DevOps. With scalable cloud storage, computing, and networking platforms, GCCs can quickly adjust their resources based on demand, enhancing their efficiency and scalability.
  1. Data analytics: The data that GCCs and their parent organizations own or extrapolate from other sources are valuable for their productivity, risk control, marketing campaigns, customer service, and growth planning. By integrating advanced analytics tools with enterprise applications, IT service providers channel actionable insights into a GCC’s boardroom, allowing them to strategize mission-critical functions. Data scientists from IT service providers map out the analytics for quantifiable business outcomes, and data engineers ensure that GCC employees have access to meaningful and up-to-date information to optimize operations.
  2. AI and automation: AI and Generative AI-powered automation are becoming essential resources for GCCs, helping them save time and resources on tasks that have been manual for years. Working closely with an IT services firm, an enterprise can boost the efficiency of its R&D, software development, customer support, HR, and finance management without inflating costs. When mundane jobs are automated, the chances of human error are reduced, and GCCs can complete their global workloads more effectively. Machine learning algorithms also deliver cognitive insights about customer preferences, improve actuarial modeling, and identify real-time fraud attempts.
  3. Disaster recovery is critical for GCCs with their growing digital footprint and complex technologies. Robust business continuity, disaster recovery plans, and cybersecurity measures are essential. IT service providers deploy failover systems and facilitate secure data backups to reduce downtime triggered by unforeseen crises, technical failures, or natural causes such as fires, floods, and earthquakes. A professional business continuity management (BCM) team minimizes continuity-related risk exposure and offers structured crisis response aligned to critical business priorities. Effective BCM is also essential to address supply chain disruptions and other contingencies arising from geopolitical tensions and macroeconomic turbulence.
  4. Sustainability: In the face of climate change, global warming, severe floods, and biodiversity loss, sustainability has become a top concern across countries. GCCs are expected to spearhead cross-functional initiatives and drive innovations supporting sustainability. IT service specialists’ awareness of global Environmental, Health, and Safety norms enables them to support GCCs with solutions that mitigate risks affecting people, processes, products, and our surroundings. Inter-disciplinary teams simplify the adoption of ethical business practices with a focus on vendor sustainability, carbon footprint reduction, energy savings, and transparent reporting, making the audience feel responsible for their actions.

Scaling GCC businesses in India

Due to its wealth of talent, cost-effective telecom and networking services, and supportive business ecosystem, India has emerged as a highly preferred destination for multinationals to establish their GCCs. Technology service providers are cementing their pillars of success with various Industry 4.0 solutions. With tailored digital transformation solutions, they help these international businesses evolve from core transactional hubs to innovation-led value delivery centers.

As a certified SAP, AWS, and Microsoft partner with a track record of working consultatively with GCCs in their transformation journey, YASH Technologies is uniquely positioned to make their transition journey and scalability seamless. We provide them with the tools they need to thrive and lead. Our services give them new opportunities to steer comprehensive portfolios as centers of excellence, influencing economies and talent to grow together.

To know more about our take on GCCs, visit https://www.yash.com/services/global-capability-centers-gccs/

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