In my last article , I discussed in some length the ‘why’ or rationale for establishing a GCC in India today. I also touched on the reason why many organizations are unable to realize the fullest value from their GCCs, which is a lack of strategic clarity and misalignment.
In this article, I will elaborate on the ‘what’ or key considerations around GCC strategy before an organization embarks on its GCC journey.
Leaders must ask and answer the following questions:
What is the ojective for our GCC?
It can range from transformation and center of excellence to new technology creation and product development to back-office operations. Importantly, it should examine the core GCC vision of IP creation and innovation center vs. cost focus and control.
What are the available operating models and their effectiveness for our instance?
It delves into the cost center vs profit center approach, the required organization structure, and the roles and responsibilities to support the chosen model.
Can we scale our GCC to align with our long-term vision and growth?
These discussions center around the number of locations (single or multiple), the optimal size for each location, and its cost and risk implications.
Do we have the capabilities, skills, and resources needed to launch, manage, and sustain such an undertaking?
It should also include a deep dive into the compliance and regulatory requirements of FCPA, SOX, data privacy, and reporting.
Many organizations falter at this crucial stage of establishing strategy, expectations, and execution. IndusSME, with our hands-on, ‘been there, done that’ experience, can partner and facilitate your Board presentations, discussions, and buy-in to arrive at a sound GCC strategy.
We have actual, in-country experience establishing and managing GCCs in 22 cities in India, North America, Far East and Europe, covering 25,000 employees.
We start with a well-articulated strategy which clearly spells out the endgame, execute multi-disciplinary operations with facilities, people, and processes, and partner with on the ground management and services.
Next time: We discuss the ‘how’ of GCCs – how to equip your GCC for success from day one.
#GCCIndia #GlobalCapabilityCenter #InnovationHub #IndusSME
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