Global in-house centres (GICs) have undergone a shift in the way they are perceived today. From being considered a way to optimize cost to enabling digital transformation, GICs are gaining prominence today. According to NASSCOM report titled ‘GICs in India: Getting Ready for the Digital Wave’, there are about 1,025 GICs in India employing more than 25% of the industry workforce. Undoubtedly, GICs are seen as great value additions to their parent companies.
Source: NASSCOM
With GICs rapidly transforming business and gaining momentum, the need has emerged to sustain cost advantage to its parent company. The ability of GICs to scale its operations with insourcing is the key to achieve cost efficiency. Insourcing assignments come with its set of challenges.
So, what can GICs do to enable this vast scale and rapid growth? Here are are the challenges faced by GICs in the process of insourcing and suggestions to overcome these challenges:
1. The talent challenge
The biggest differentiator in insourcing is ‘talent’. GICs want talent in-house and not outsourced. Insourcing requires hiring and training an entire in-house workforce. Maintaining steady flow of talent (quantity and quality) poses a huge challenge in the long-run
Is your in-house team capable of managing end-to-end talent acquisition consistently?
2. The time challenge
The pace at which technology, people and processes have to be developed for insourcing is a challenge. GICs have to bring in strategic talent 4X faster in an insourcing assignment. Example: Your business could need 50 full-time joiners every month in an insourcing assignment instead of 10 in outsourced assignment. These 50 positions could be niche skills and more time consuming due to the nature of skills and expertise required.
Does your organization have the capability and bandwidth to keep pace with such talent needs needs?
3. The teething challenge
It is not just introducing new technology, people and processes, aligning these to your organization while insourcing is a challenge. Example: If a new process technology has been introduced, there will be teething issues if right infrastructure, training and support are not provided. Even when insourcing talent, managing the selection, onboarding and alignment to culture need to be addressed in the teething phase.
Is your organization capable of bringing alignment to address the teething challenge?
4. The scalability challenge
Insourcing needs are dynamic to suit the VUCA business environment. This is a continuous process and GICs should be prepared to scale their infrastructure and resources. Example: New R&D insourcing could demand certain niche talent and infrastructure. It could be setting up of new facility or hiring 5X researchers.
Can your organization scale delivery of talent, infrastructure of processes at the pace required by business?
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