The relationship between Global Capability Centres and IT services companies has transformed dramatically from competition to collaboration, with both sectors discovering significant mutual benefits through various engagement models.
From Rivals to Strategic Partners
According to industry leaders, the previous perception of GCCs competing with IT and technology services companies has completely changed. Both sectors now recognize substantial value in working together and are actively experimenting with multiple partnership approaches.
Deepak Wadhawan, SVP of operations & India country leader for Concentrix, emphasized this shift during a recent fireside chat at a GCC conference in Hyderabad. "GCCs and service providers are going to coexist in this world because there is enough and more work for both," stated Wadhawan, whose company employs 450,000 people globally.
Talent and Infrastructure Advantages
For newly established GCCs, services companies provide crucial support in navigating unfamiliar territory. Their extensive experience in talent acquisition, infrastructure setup, and associated services enables faster establishment of operations.
Wadhawan highlighted the unmatched scale in talent acquisition, noting that during peak seasons, Concentrix hires approximately 5,000 to 6,000 people monthly. As work complexity increases, their capability to deliver specialized talent at optimal costs has also expanded significantly.
Ajit Melarkode, SVP of sales & account management for Asia-Pacific at Concentrix, explained their strong ability to provide foundational services to GCCs, including data governance, analytics practice, and managed security services. "The Americans call it eating your own dog food – we have internal managed security services for the half a million people in our company," Melarkode remarked.
Ecosystem Development and Prototype Testing
Even established GCCs benefit from services companies' talent resources, particularly when requiring specialized skills for short-term projects or experimental initiatives. Melarkode observed that many GCCs begin with single functions but eventually expand to multiple functions and ecosystem development.
Service providers play crucial roles in these expanded operations. Melarkode shared an example where a European banking client's GCC tasked them with managing their ecosystem of legal representatives for customer queries and claims processing.
Wadhawan revealed another collaborative model where service providers test prototypes for GCCs establishing R&D centers in India. "In two clients, one in retail and the other in transportation, we co-locate with them, and as soon as they develop a solution, we test the prototypes using our experience and processes, providing almost real-time feedback," he explained.
This symbiotic relationship demonstrates how both GCCs and service providers are leveraging their respective strengths to create more efficient and innovative operational models in the evolving Indian business landscape.
