Factors that create a strong foundation for effective GCC leadership

Hirings by global capability centres or global business services (GCCs/GBSs) have come as positive news this year amid stories of layoffs and slowdowns.

The absolute hiring numbers are smaller than, say, IT services hiring; but the trends reveal consistent growth plans of GCC. We had analysed the hiring patterns and the underlying reasons earlier. In this article, we assess the imperatives for GCC/GBSs leadership in 2024.

Analyst firm HFS says in an analysis on the GBS model in a blog, “Global talent is what created the GBS model. Centralisation, standardisation, lean/six sigma, offshoring, nearshoring, technology augmentation and, more recently, anywhere-shoring have been the pillars to drive down costs and improve productivity. The core business case for GBS revolves around 30%+ upfront arbitrage-driven cost savings and 5-10% YOY productivity with a veneer of better stakeholder experience and improved business outcomes.”


However, it estimates a limit to such savings after which diminishing returns can kick in.

What’s the solution then?
A HFS study on GBS leaders states that generative AI can be a big game changer for GCC/GBS. It can bring in significant productivity improvements. Not just that, it has scope for more creative work and also to build “an inflection point for GBS to jump to a new S-curve of value creation.”

What are the nuances of this shift on GCC leadership for 2024?
Vikram Ahuja, MD ANSR, CEO and Co-Founder Talent500, says GCCs in India operate as hubs for specialised talent, driving innovation and fostering an environment of operational excellence. The leaders overseeing these centres play a multifaceted role crucial for their success.

Leadership requirements for 2024
Ahuja says these leaders need to have certain skills to ensure success. The leaders at these centres should know how to manage talent and culture, be result oriented and be open to innovation.

Talent management: For GCCs, attracting, retaining and developing differentiated talent is a primary focus. GCCs are established in India to harness a unique pool of skilled professionals who offer specialised competencies, and this becomes one of the most critical skills. In this competitive job market, GCC site leaders play a pivotal role in not only recruiting the best talent but also in ensuring that these exceptional individuals are retained and continually developed to maintain the GCC’s competitive edge.

Cultural champion: The GCC site leader must skillfully manage cultural differences that can often exist between the headquarters and the GCC. Effective cross-cultural communication is not only necessary but a strategic advantage for success. This proficiency in navigating the nuances of diverse cultural backgrounds ensures that employees feel valued, understood, and respected in their workplace, regardless of their geographical location. This skill goes beyond simple awareness; it’s about the adept management of diversity to create a unified and thriving work culture that propels the organisation’s success on a global scale.

Results-driven: The GCC leader must exhibit a relentless commitment to achieving goals and objectives. This results-driven approach ensures that the GCC functions not just as an auxiliary unit but as a potent driver of global performance. The site leader’s ability to set clear benchmarks, establish efficient workflows, and translate innovation into measurable outcomes is paramount. It reinforces the GCC’s reputation as an invaluable partner in the organisation’s success story, leaving an indelible mark on its global operations. The results-driven mindset ensures that the GCC continues to serve as a nucleus for specialised talent, innovation and remarkable achievements.

Innovation mindset: The GCC often serves as a hub for differentiated talent and expertise, making innovation a cornerstone of success. GCC leaders must exhibit a remarkable innovation mindset, constantly seeking new solutions, and identifying opportunities for improvement. This proficiency in driving innovation ensures that the GCC stays at the forefront of cutting-edge advancements and remains an invaluable resource for the organisation.By skillfully fostering an innovation culture, GCC leaders contribute significantly to their organisation’s reputation as a global hub for pioneering talent and solutions

Operational excellence: Ensuring smooth operations is critical to delivering high-quality services or products. This might involve process optimisation, automation and adherence to quality standards.