Data science aims to drive a new world order for Global Capability Centers (GGCs)

It is an inevitable conclusion that data science used in the right context at the right time is the key factor to the success of any large enterprise. In this day and age, every large organization is making critical decisions regarding its future based on data that is available in artificial intelligence and machine learning forms.

During the COVID-19 pandemic, the lockdowns and work-from-home mandates provided digitization a turbo boost. Progressively customers now prefer to engage with enterprises in a digital model only. Data science along with artificial intelligence, automation, and machine learning have developed into commonplace. In such a digital-first world, enterprises carry no option but to advance their tech adoption. But they experience multiple roadblocks including disruption of existing models and the need for speed in an increasingly fluid business environment. This has resulted in the scenario that today data engineering and data scientists are some of the most sought-after competencies today and every GCC is building a center of expertise around the database. Global Capability Centers (GCC) have become a key enabler for overcoming these challenges and accelerating tech adoption in enterprises. In the 2021 EY GCC Survey, 76% of the respondents mentioned data as one of their critical areas for growth.

Here are some ways how global capacity centers are playing with data science:

GCC helps enterprises become digitally ready

GCCs were mainly outsourcing hubs that were engrossed in IT shared services support. GCCs supported their parent companies' HR, procurement, finance, operations, and other processes. Now, GCCs have advanced to become strategic, semi-autonomous partners of their parent enterprises. GCCs, assist parent companies in adding the latest technology initiatives and driving innovation. Tech enterprises rely on GCCs to host databases and servers, and run applications. Today, GCC service providers in India support their parent companies to overcome the challenges of the post-COVID business landscape by spotting early trends and conceptualizing new services, running critical processes by hosting and orchestrating the complex infrastructure such as supply chain management. Increased digitalization translates to a lesser physical footprint and businesses are now converting their working spaces into collaboration hubs where GCCs provide back-office support to power such collaboration hubs and hot-desking. The remote support offered by GCCs became invaluable as stay-at-home orders shut employees out of their offices in most parts of the world. With a hybrid work environment now fast becoming the norm, GCCs continue to offer critical remote support to the parent company.

Catalyzing digital transformation

GCCs licenses parent companies to re-engineer their operational models and help embrace the current digital technology. Enterprises depend on GCCs to run virtual-connect and collaboration platforms, undertake cognitive automation, develop AI models, unlock IoT possibilities, roll out predictive analytics, implement blockchain, and adopt other cutting-edge digital technologies. Enterprises accelerating the post-pandemic hybrid work culture require scalable digital systems purpose-built for distributed workforces. Such systems make the enterprise agile, resilient, and pliable to function as usual despite adverse external events. Achieving such a state requires digital transformation. And many GCCs lead the digital transformation initiatives for their parent companies. These remote digital transformation hubs provide the parent company with strategic technical talent and resources to sanction fast growth and operational excellence in a sustainable manner.

Implementing Artificial Intelligence and Machine Learning models

Artificial Intelligence models are inherently disruptive and fraught with risk. About 95% of the AI models fail when implemented in real-world settings. Often, the model is unable to factor in all the eventualities that crop up in the real world. GCCs, help enterprises in defeating such hurdles and roll out AI models in a risk-free environment. GCCs also nurture and enrich the enterprise innovation ecosystem. GCCs in India offer viable incubation centers to experiment and run AI models.  Enterprises may develop proofs-of-concept and test the waters using GCCs, before adopting the models in real-world settings. Experimenting with a new AI model with the GCC as the base does not disrupt the business operations taking place at the head office. Big enterprises such as Lululemon, Giant Eagle, Goldman Sachs, and others have set up GCCs in Bengaluru. These hubs facilitate technology innovation, leadership, and business development. They expand the company's expertise in database, analytics, platform engineering, merchandising, and QA.

Resolving HR issues

The skills shortage plaguing industries for over a decade has grown more acute post-COVID. The pace of change keeps overriding the pace of learning. The ecosystem supports relearning and upskilling, but busy and harried executives rarely have the time to commit to the same. There is a scramble to access talent, and skill shortage has provoked many companies to be unable to go in for digital transformation or adopt new technology. The skill shortage has also escalated HR costs, making many projects unviable financially. GCCs, help enterprises mitigate the talent crunch, and roll out new technology in a cost-effective way. Also, GCCs leverage local capabilities and talent to roll out innovative and cutting-edge products. GCCs fascinate rich talent pools at much lower rates compared to accessing the same talent at home location. Moreover, GCCs can hire and reskill their workforce with niche skills in AI, Machine Learning, Natural Language Processing, Blockchain, data analytics, and other emerging technologies.

Fortifying security

Data breaches subvert even the most robust of networks. Countless companies have lost personally identifiable information and other sensitive data from databases to hackers. They end up paying backbreaking ransomware or regulatory fines. GCCs, ramp up their cyber security approaches to stay ahead of such threats. They remain in a prime position to orchestrate robust threat detection and response capabilities and make timely responses, using artificial intelligence's latest tools.

It applies intelligent automation and standardization initiatives to reinforce the enterprise architecture, including embedding security into enterprise workflows and adopting approaches such as "security and safety by design."

Conclusion:

The global GCC market is about US$ 40 billion, which constitutes 25% of the global offshore services market. 27% of the US-based Global 2000 firms have a GCC already set up in India. India has 1300+ GCCs, employing a workforce of more than 1.3 million, and generating USD 33.8 billion of gross revenue. Depending on GCCs will be healthy for enterprises to stay competitive in the post-pandemic decade. GCC service providers in India have overcome the COVID-19-induced slump and regained their growth trajectory. At last count, around 500+ global companies are preparing to launch captive centers in India by 2025.