The GCC-as-a-Service Model is Unlocking New Opportunities for Service Providers.

In today's rapidly evolving global business landscape, companies are increasingly looking to leverage global talent pools to drive innovation and efficiency. Global Capability Centers (GCCs) have emerged as a powerful solution, allowing organizations to build offshore teams seamlessly integrated with their core operations. For service providers, the GCC-as-a-Service model presents a lucrative opportunity to capture significant value in this growing market.

Understanding the GCC-as-a-Service Model

GCC-as-a-Service is a comprehensive offering that enables companies to establish and operate Global Capability Centers without the complexities of setting up legal entities, managing real estate, or handling day-to-day operations in foreign countries. Service providers take on these responsibilities, offering a turnkey solution that includes talent acquisition, workspace management, IT infrastructure, compliance, and operational support.

Key Benefits for GCC Service Providers

1. Diverse Revenue Streams

Service providers can generate revenue from multiple sources within the GCC model:

• Talent Management: A markup on employee salaries for recruitment and ongoing HR management.
• Workspace Solutions: Fees for office space, facilities management, and related services.
• IT Infrastructure and Support: Charges for setting up and maintaining IT systems and providing technical support.
• Compliance and Governance: Fees for ensuring adherence to local regulations and corporate governance standards.
• Value-Added Services: Additional offerings such as employer branding, training programs, or specialized consulting.

2. Scalable Business Model

The GCC-as-a-Service model is inherently scalable:

• Start with small teams and grow as client needs expand.
• Easily replicate successful GCC setups for new clients.
• Scale services across multiple locations and industries.

3. Long-Term Client Relationships

GCCs are typically long-term engagements, providing service providers with:

• Stable, predictable revenue streams.
• Opportunities to deepen client relationships over time.
• Increased client retention due to the complexity of changing GCC providers.

4. Competitive Differentiation

By offering a comprehensive GCC solution, service providers can:

• Stand out in the crowded outsourcing and offshoring market.
• Attract clients looking for end-to-end solutions rather than piecemeal services.
• Position themselves as strategic partners rather than mere vendors.

5. Economies of Scale

As the GCC service provider's business grows, they can benefit from:

• Bulk purchasing power for real estate, equipment, and services.
• Shared resources across multiple client engagements.
• Improved operational efficiency through standardized processes.

6. High-Value Service Offering

The comprehensive nature of GCC-as-a-Service allows providers to:

• Command premium pricing for their end-to-end solution.
• Justify higher margins compared to traditional staffing or facilities management services.
• Upsell and cross-sell additional services to existing clients.

7. Risk Mitigation for Clients (and Opportunity for Providers)

By taking on the complexities of setting up and running GCCs, service providers:

• Absorb and manage risks related to compliance, operations, and talent management.
• Can develop expertise in navigating these challenges, turning risk management into a competitive advantage.
• Create higher barriers to entry for potential competitors.

Strategies for Success in the GCC-as-a-Service Market

To maximize the benefits of this model, GCC service providers should focus on:

1. Operational Excellence: Streamline processes and leverage technology to manage GCCs efficiently.
2. Talent Pipeline Development: Build strong networks and recruitment capabilities in key talent markets.
3. Technology Investment: Develop robust platforms for managing distributed teams and operations.
4. Industry Specialization: Develop deep domain knowledge in key industries to provide more value to clients.
5. Flexible Offerings: Create modular service packages that can be tailored to different client needs and scales.
6. Global Presence: Establish capabilities in multiple geographies to offer clients diverse location options.
7. Continuous Innovation: Stay ahead of trends in work models, technology, and talent management to continually enhance the value proposition.

Success Story: Accenture's Strategic Investment in ANSR

The potential of the GCC-as-a-Service model is clearly demonstrated by Accenture's recent $170 million investment in ANSR, a leading global capability centre platform. This strategic move highlights the growing importance and lucrative nature of the GCC market.

Background on ANSR

Founded in 2015, ANSR has quickly established itself as a key player in the GCC space:

• Headquarters in Dallas, Texas, with significant operations in India
• Offers end-to-end services for building, managing, and scaling GCCs
• Provides comprehensive solutions for talent, workspace, HR, and GCC operations

The Accenture-ANSR Alliance

Accenture's substantial investment brings several benefits:

1. Strategic Partnership: The alliance allows both companies to combine their strengths in helping clients design, set up, and optimize global teams for technology and business functions.
2. Board Representation: Accenture will join ANSR's board of directors, providing strategic guidance and deepening the partnership.
3. Market Validation: This investment by a major player like Accenture validates the GCC-as-a-Service model and ANSR's approach to it.

Industry Perspective

Paul Jeruchimowitz, a senior managing director with Accenture Strategy, emphasized the importance of GCCs in today's business environment:

"In today's talent-challenged environment, GCCs have become an effective way for global organisations to tap into valuable, diverse talent networks, drive long-term growth and innovation, and ensure resilience—all while maintaining their distinct corporate cultures and values."

Implications for the GCC Market

This investment and alliance have several implications for the broader GCC-as-a-Service market:

1. Growing Market Interest: Major consulting firms are recognizing the value of GCC services, indicating a growing and maturing market.
2. Increased Competition: As large players enter the market, competition is likely to intensify, driving innovation and service quality.
3. Potential for Consolidation: This move might signal the start of consolidation in the GCC services market, with larger firms acquiring or investing in specialized GCC service providers.
4. Expanded Service Offerings: The combined expertise of Accenture and ANSR is likely to result in more comprehensive and sophisticated GCC solutions.
5. Global Expansion: With Accenture's global reach, ANSR's GCC solutions could see accelerated adoption in new markets.

This success story underscores the significant opportunities available in the GCC-as-a-Service market. It demonstrates that even established consulting giants see the value in specialized GCC platforms, indicating a bright future for innovative service providers in this space.

https://www.ndtvprofit.com/business/accenture-invests-170-million-in-global-consulting-firm-ansr

Conclusion

The GCC-as-a-Service model represents a significant opportunity for service providers to capture value in the evolving landscape of global talent management. By offering a comprehensive, flexible, and scalable solution, providers can position themselves as indispensable partners to companies looking to build and leverage global capabilities. As the trend towards distributed and global teams continues to accelerate, those who can master the GCC-as-a-Service model will be well-positioned for sustained growth and success.