Introduction: The Rising Cost Challenges of Global Capability Centers (GCCs)
GCCs are undoubtedly the centers around which global multinational companies rally around as the central place to congregate all their knowledge, innovations, and operational excellence. However, 68% of GCCs mention having increased operational costs due to shortages of skilled personnel, infrastructural investments, and compliance burdens. The case study is a partnership with Shift Ahead, a digital platform provider and Managed Service Provider (MSP), which enabled a medium-sized IT organization to achieve 40% on operational expenses while enhancing management productivity.
What Is A GCC?
GCC stands for Global Capability Center-a single offshore or nearshore unit of a multinational that centralizes its critical business processes like IT, customer care, and financial operations. While GCCs include very important aspects in corporate knowledge centralization, they do carry very high operational costs.
Costs Considered for MSPs v/GCCs The Financial Services Operations of the GCCs
The establishment of a GCC is a capital-intensive venture, with subsequent operational costs incurred such as:
•Infrastructure and Real Estate: Office space and technology infrastructure setups.
•Human Resources: Competitively paying for salaries, benefits, and training.
•Legal Costs and Regulatory Compliance: Meeting local and international requirements.
•Investment in Technology Stack: To keep its software, hardware, and security systems running strong.
According to a Deloitte study, GCCs are more expensive than comparable work through MSPs by about 30-50%.
Cost Savings with Managed Services Providers
The different ways in which an MSP drives down costs by as much as 40-60% are as follows:
•No Initial Capital Costs: Setting up infrastructure and technology is therefore out of the question.
•On-Demand Services: Flexible price for services rendered.
•Tap into Available Talent Pool: Access to vetted professionals when needed.
•Scalability: Adjust capacity almost immediately when required.
Shift Ahead Case Study: How this firm Helped a Global IT Company Reduce Costs by Half
History of the Client
An international IT conglomerate with an offshore operation in India wanted to eliminate rising costs while retaining quality delivery.
Challenges Faced
• High Infrastructure Costs: Setting-up offices and maintaining them.
• Talent Retention Issues: Increasing salaries lead to turnover.
• Compliance Overheads: Regulating the maze of statutory regulations.
• Limited Scalability: Long hiring and firing cycles.
The Solution: Collaborating with Shift Ahead's MSP Model
Shift Ahead Provided:
• Frameworks for Cost-Optimisation: Initial audits, ROI calculators, and risk matrices
• Global Talent Network: tapping on over 10000 pre-vetted professionals.
• Remote IT Management: Meeting the need for employees to work without building offices.
• On-demand Scaling of Workforce Resources: Align the resources required concerning the demand of the business.
• Automated Compliance: Technologically streamlining adherence to regulations .
• AI-enabled Monitoring: Enhancing efficiencies and reducing costs.
Achievements Realized
•Reduction of Cost By 50%- Has been realized in Six Months.
•IT Support 24/7- Provided without additional staffing costs.
•Agile Workforce: Easily Scalable according to business fluctuations.
•Improved Security: Automated Compliance and Monitoring. Final Thoughts.
Apart from these, an MSP provides high-end scalability, emerging technologies, and tremendous cost savings, making it perfect for any firm to consider as an alternative option to GCC. Shift Ahead offers customized solutions that prepare a business for meeting its set objectives efficiently and cost-effectively. Contact Shift Ahead today to optimize your GCC operations.
Optimize Your GCC Operations Today
Don’t let rising operational costs hinder your organization’s growth. Partner with Shift Ahead to access scalable, cost-effective solutions that enhance productivity, streamline compliance, and reduce expenses. Whether you’re seeking to optimize your existing GCC or transition to a more agile MSP model, Shift Ahead is here to help. Contact Shiftahead today to start your cost-saving journey and propel your business forward.