NASSCOM GIC Conclave 2014 - Global Operating Platforms - Gaurav Gupta, AT Kearney


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NASSCOM GIC Conclave 2014 - Global Operating Platforms - Gaurav Gupta, AT Kearney

  1. 1. A.T. Kearney xx/mm.yyyy/00000 1 NASSCOM – A.T. Kearney Study NASSCOM GIC Conclave, Pune April 15, 2014 Global Operating Platforms
  2. 2. A.T. Kearney xx/mm.yyyy/00000 2 Global Operating Platforms (GOPs) are integral to global enterprises Vendor networks GIC governance and global delivery teams In countries GIC team In country vendor management Headquarters Global vendor management Parent/Demand centers Warsaw Hyderabad Gurgaon Japan Korea China Philippines LATAM APAC Africa EMEA Dublin Source: Analyst reports; Interviews, A.T. Kearney analysis Example: Technology Product and Services Firm
  3. 3. A.T. Kearney xx/mm.yyyy/00000 3 Vendor Model Talent Model Location selection Process Design Global Operating Platforms consist of three key elements Governance Network Model • Scale • Scope • Topography • Strategy • Process • Execution • Enterprise-level • Pan-GIC level • GIC node-level 1 3 Operating Model Elements2
  4. 4. A.T. Kearney xx/mm.yyyy/00000 4 Network Model is an outcome of scale and scope Scope Stand-alone Center Hub and Spoke Network of global Scaled up Sites Scale Functional Offshore Teams Shared Service Center Center of Excellence Hybrid Model BU1 BU2 BUn Analytics CoE ….. Function 1 Function 2 Function n Global delivery center …. Parent GOP BU1 BU2 BUn….. CoE1 CoE3 CoE2
  5. 5. A.T. Kearney xx/mm.yyyy/00000 5 Operating model elements are driven by expectations around efficiency and effectiveness Talent Model Process re-design to accommodate GOP Approach to location selection Vendor Model Priority location drivers Governance Effectiveness Efficiency Minimal Extensive Less aggressive – stick to mature locations Collaborative IndependentComplement Compete Scale-up drivers (cost, risk …) Scope-up drivers (Specialized talent, infra)… Strong BU alignment SSC reporting to a centralized SSC Head One-firm – similar global standards More aggressive; try new locations; Align with vendor foot print Re-design to best leverage offshore talent
  6. 6. A.T. Kearney xx/mm.yyyy/00000 6 Most GOPs evolve more by accident than by design 13 20 27 33 33 87 87 80 73 67 67 13 100 GOP Career ladder has linkages with enterprise Guiding principles for vendor, location, process, talent One view of GOP in annual / strat planning cycles GOPs measured for ’value delivered’, not only ops metrics GOP objectives evolve with time & externalities 3-5 year future roadmap for entire GOP Planned historical evolution 0 Source: Analyst reports; Interviews, A.T. Kearney analysis No Yes
  7. 7. A.T. Kearney xx/mm.yyyy/00000 7 This results in challenges on multiple dimensions • Potentially higher than market cost for comparable work • Businesses unclear where to drive work – GIC or third party • Unclear talent strategy around local vs. global standards • Confusion on evolving employee value proposition to attract and retain talent • Unintended location footprints across owned and outsourced • Inconsistent location decision-making • Lack of clarity on organization alignment • Culture oriented to scale and efficiency vs. ability to incubate new ideas and skills Signs of Strain
  8. 8. A.T. Kearney xx/mm.yyyy/00000 8 More importantly, it takes longer to reach opportunities that can driver broader impact Do Different • Global financial services team created new analytics capability • Global telco enabled Go-to-market capabilities within GOP • Custodianship of global functions or businesses at internet services company • Healthcare company optimized global sourcing portfolio • Construction equipment firm adopted cross GOP Risk Management • Fortune 100 firm changed reporting by carving out GOP into new BU with CXO reporting • 5X EBITDA impact • 50% reduction in customer cost and time overruns • 4X scale up of GOP • Increase in portfolio manager effectiveness • Faster time to market in emerging geographies • Consistent global process Examples Impact Do More
  9. 9. A.T. Kearney xx/mm.yyyy/00000 9 Five must-dos for Global Operating Platforms to evolve successfully 1 Understand the GOP elements 2 Define a GOP vision 3 Recalibrate the operating model 4 Redraw governance 5 Reequip the leader
  10. 10. A.T. Kearney xx/mm.yyyy/00000 10 A.T. Kearney is a global team of forward-thinking partners that delivers immediate impact and growing advantage for its clients. We are passionate problem solvers who excel in collaborating across borders to co-create and realize elegantly simple, practical, and sustainable results. Since 1926, we have been trusted advisors on the most mission-critical issues to the world’s leading organizations across all major industries and service sectors. A.T. Kearney has 58 offices located in major business centers across 40 countries. Americas Atlanta Bogotá Calgary Chicago Dallas Detroit Houston Mexico City New York San Francisco São Paulo Toronto Washington, D.C. Asia Pacific Bangkok Beijing Hong Kong Jakarta Kuala Lumpur Melbourne Mumbai New Delhi Seoul Shanghai Singapore Sydney Tokyo Europe Amsterdam Berlin Brussels Bucharest Budapest Copenhagen Düsseldorf Frankfurt Helsinki Istanbul Kiev Lisbon Ljubljana London Madrid Milan Moscow Munich Oslo Paris Prague Rome Stockholm Stuttgart Vienna Warsaw Zurich Middle East and Africa Abu Dhabi Dubai Johannesburg Manama Riyadh