Organisations all over the world are undergoing unprecedented change. By sculpting out niche prospects and driving the development vision, global capability centres (GCCs) are essential in assisting them to navigate such changes.
Due to their framework, functionality, and economic viability, GCCs are uniquely placed to play a further important role than before. The existing pandemic has amplified this transformation, resulting in a hypothesis dedicated to providing increased business benefits to the parent firm.
Global In-House Centers (GICs) are more than just a storage facility for inner IT or operations features. They have evolved from cost hedging to a pivotal component of institutional vision and strategy and have become Global Capability Centers (GCCs).
Presently, GCCs not only push operations and productivity advancements for international firms, but they also develop new technologies, resulting in cross-functional initiatives, and introduce new commodities and service providers to the market depending on innovations developed at such centres.
Regarding advancing business strategies, GCCs have expanded the depth and breadth of their services. They prompt a worldwide management system, strengthen international procurement strategies, and offer exclusive product lines and channels.
This market has the opportunity to revitalise itself by challenging conventional thinking in areas like strong leadership, talent management, and oversight.
Developing Entrepreneurship Culture at the GCC Standard
GCCs have traditionally mirrored the silos of the parent firm. The process and technology team members are frequently housed together — sometimes under the leadership of the same individual.
Even though they collaborate, they have always acted independently. This aspect has resulted in reduced efficiencies, inaccurate shipments from the GCCs, and missed chances for the financial institution, rendering this configuration unrealistic or, at best, inadequately to its maximum capabilities.
A more interconnected methodology is needed to assist GCC mentors in reflecting on entrepreneurial imagination or pondering O & T functionality clusters.
The Spiky GM’s Ascension
The transition toward a quite integral strategy also implies that the GCC has the task of steering considerable value than in the earlier days, with the significantly rapid evolution of technology.
A large international bank, for example, combined its O&T groups in India and formed a management team that was more motivated and engaged to create change in both modules.
As a result of this shift, the “spiky” developer General Manager has emerged, someone to carry O&T next to each other, optimise, push the strategic plan, and drive technology. This leader should be able to handle product, framework, and technical staff – skills that were earlier lacking in most GCCs.
Indeed, BFSI firms could learn a thing or two from financial technology and software manufacturers and suppliers, and we see a lot of Spikier GMs.
Getting Involved Beyond the Four Walls
GCCs, recognise the necessity of higher interaction with the ecological system, which is required if they are to introduce new suggestions, create a stronger company image, or create products that are more pertinent to developing markets.
While still in their infancy, financial institutions are beginning to interact with the setup society and academic institutions via numerous media. These media include activators, innovation centres, and contests. Alternatively, they are constructing a blueprint for doing so.
One example is Accelerator 2030, a collaboration between HSBC Bank and startup business incubation T-Hub. A further example is Citi’s “Hello,” a relationship software solution for its elevated clients developed by one of the teams in their development program.
Getting Accustomed to Change
How could the GCCs adapt to such industry changes?
We presume they could do three things differently in the following ways:
- Consider the skill base in a novel way:
GCCs can widen the talents of talented individuals, both externally and internally. There are many successful examples of captive long-term planning, and multiple companies typically rely on introducing a peripheral boss.
GCCs must focus on internal leadership development and emphasise uniqueness and next-generation technological expertise.
Firms must articulate what leadership skills are necessary for the enterprise’s growth. They should be keen to pursue talent from third-party suppliers, manufacturers, or platform businesses with the required abilities as they perceive what the executive coaching path could look like, often within GCCs.
They would have to take calculated risks to bet on the association’s capacity and then see them succeed.
- Stimulate an innovative and agile culture:
Culture is essential to a company’s high viability. With the GCCs serving as the foundation of global banking innovation today, a culture of advancement and flexibility is necessary.
Digitalisation necessitates pace, flexibility, agility, and high partnership rates and impacts all over business structures. Such a tradition does have the added benefit of creating an appealing corporate image, which helps them compete even more.
- Create a system of governance that is “up to the job”:
Higher enterprise possession and “front-to-back” assimilation of overseas and onsite teams have been key achievement metrics for GCCs. It has aided in risk management, creating more convincing fields of study, and providing greater control and authority over global network teams.
Even so, as a logical outcome of this, silos have resurfaced, as has the position of a leader of a nation mainly accountable for expertise, brand, and adherence, with little involvement in driving specific industry, operational, or revolutionary consequences.