Indian School of Business, Deloitte and Nasscom develop index for GICs in India

NEW DELHI: Indian School of Business (ISB) and Deloitte Consulting, in association with IT industry body Nasscom, have developed a maturity index for global in-house centres (GICs) in India to help them benchmark their performance relative to industry peers.

"GICs create significant value for the parent company. The Index will help them to not only benchmark their performance but also identify capabilities and processes that they must invest in to yield optimal performance," ISB Assistant Professor Deepa Mani said.

Captive centres or global in-house centres (GICs) contribute more than a fifth, or about $ 20 billion of software exports revenue from India, according to Nasscom.

This is expected to touch $ 50 billion by 2020. There are over 800 GICs in India offering services across IT, Business Process Management, Engineering R&D and software products.

Nasscom Vice-President (Industry Initiatives) K S Viswanathan Ksv said many GICs in India are already creating value and business impact to their global corporations.

"Such a comparative Index also enables the GIC to understand the good practices being followed by their peers in the industry and enabling them to move ahead in the value chain," he added.

According to the preliminary findings of the Index, there is a need for process optimisation and data integration.

Benefits of process optimisation include lower operating costs per employee (20 per cent savings) and lower marginal costs of increasing scope of operations (over 100 per cent savings), it said.

It added that a 10 per cent increase in investments in information sharing in innovation centres helped a mean increase of 45 patents filed with the Indian Patent Office.