Successfully reported this slideshow.
Unlocking the full potential of GICsFindings from operations excellencebenchmarking NASSCOM GIC Conclave, New Delhi March ...
GIC Chennai chapter led the effort on operations excellence                   Operations excellence Objective          Be...
1   GICs continue to drive high client satisfactionOnshore stakeholder satisfaction on overall performancePercent         ...
2     Scale and relevance to global operations likely to increasePercent of stakeholder responseHow is your offshore penet...
3   However, this growth will be accompanied by increase in     network complexityIncreasing footprint in India         Mo...
4    Ongoing cost leadership and ownership of business                             # Top two areas                        ...
5   Wide variation in performance; top performers excel                                   RULES-BASED DATA                ...
6    There are 6 imperatives for GIC leaders to drive the next wave of      operations excellence                         ...
Key messages        1.        1    India based GICs continue to deliver strong performance on client             satisfact...
Upcoming SlideShare
Loading in …5
×

NASSCOM GIC Conclave 2012: Unlocking the full potential of GICs - Shailesh Kekre (Session 6a)

2,888 views

Published on

Published in: Business, Technology
  • Be the first to comment

  • Be the first to like this

NASSCOM GIC Conclave 2012: Unlocking the full potential of GICs - Shailesh Kekre (Session 6a)

  1. 1. Unlocking the full potential of GICsFindings from operations excellencebenchmarking NASSCOM GIC Conclave, New Delhi March 21, 2012 CONFIDENTIAL AND PROPRIETARY Any use of this material without specific permission of McKinsey & Company is strictly prohibited
  2. 2. GIC Chennai chapter led the effort on operations excellence Operations excellence Objective  Benchmark the participating GICs to assess performance on operations excellence  Identify key success factors, issues and themes on operations excellence Benchmarking  Collect data from 11 GICs using our proprietary framework – peer set P360  Compare with 17 other GICs in database covering 800+ processesSOURCE: McKinsey McKinsey & Company | 1
  3. 3. 1 GICs continue to drive high client satisfactionOnshore stakeholder satisfaction on overall performancePercent 83 79Operations 73 72 70 70 69IT services 68 2009 2010 2011 2012SOURCE: McKinsey P360 benchmarking McKinsey & Company | 2
  4. 4. 2 Scale and relevance to global operations likely to increasePercent of stakeholder responseHow is your offshore penetration in India How is your offshore skill complexity mixlikely to change in the next 2-3 years? in India likely to change in 2-3 years? Increase 16 67 by >30% Increase in skill complexity mix Increase 52 by 15-30% Maintain current 29 skill complexity Maintain current 29 mix levels of offshoring Decrease from 3 Decrease in 4 current offshoring skill complexity level mixSOURCE: McKinsey P360 benchmarking McKinsey & Company | 3
  5. 5. 3 However, this growth will be accompanied by increase in network complexityIncreasing footprint in India More globalized delivery Increasing ownership mixNumber of GICs (%) Number of GICs (%) Number of GICs (%) In-house>=3 cities >=3 and 21% 28% 33%in India countries outsourced 45% 41% 57% Primarily1-2 cities 1-2 79% 72% 67% in-housein India Countries 55% 59% 43% 2008 2012 2008 2012 2008 2012SOURCE: McKinsey P360 benchmarking McKinsey & Company | 4
  6. 6. 4 Ongoing cost leadership and ownership of business # Top two areas to focus outcomes will become most important priorities Onshore stakeholder priorities from offshore operations Relative focus across five areas (percent) Banking, Telecom Manufac- insurance & hi-tech turing Cost and productivity Ownership of business outcomes Quality of delivery Footprint concentration risk Scalability and flexibility in operationsSOURCE: McKinsey P360 benchmarking McKinsey & Company | 5
  7. 7. 5 Wide variation in performance; top performers excel RULES-BASED DATA (GICs > 1,000 FTEs) consistently Performance on key outcomes Fully loaded FTE cost Net productive FTE time Quality Average indexed to 100 Average indexed to 100 SLA compliance % GIC A 80 +25% 138 +35% 98 GIC B 82 142 99 GIC C 85 135 98 GIC D 88 138 96 GIC E 93 119 95 GIC F 97 104 97 GIC G 97 101 93 GIC H 98 105 94 GIC I 99 96 95 GIC J 100 89 93 GIC K 102 95 96 GIC L 107 82 96 GIC N 107 74 94 GIC O 111 83 92 GIC P 112 85 95 GIC Q 117 79 96 GIC R 118 93 89 GIC S 121 85 92SOURCE: McKinsey P360 benchmarking McKinsey & Company | 6
  8. 8. 6 There are 6 imperatives for GIC leaders to drive the next wave of operations excellence 1 2 Manage Think multiple network, not governance site archetypes 6 3 Align operations to Manage risk business priorities 5 4 Build Streamline capability to offshore drive end- platform to-end optimisationSOURCE: McKinsey McKinsey & Company | 7
  9. 9. Key messages 1. 1 India based GICs continue to deliver strong performance on client satisfaction 2. 2 GICs expected to grow further on both scale and skill, given its strong and unique proposition 3. 3 Increased footprint is however placing a new set of challenges on managing network complexity 4. 4 Further, emphasis on delivering business outcomes while continuing to drive cost and productivity efficiencies on the rise 5. 5 While leading GICs excel consistently across multiple parameters, performance variation is large 6. 6 Next wave of operations excellence will require GICs to build distinctive skills in 6 areasSOURCE: McKinsey McKinsey & Company | 8

×