This document summarizes Everest Group's services and expertise in advising global companies. It discusses how Global In-house Centers have evolved from focusing on cost reduction to also supporting innovation and new digital services. GICs are well-positioned to support enterprises' digital agendas across areas like analytics, mobility, cloud, and robotics process automation. The document provides examples of GICs that have delivered innovation through analytics and recommendations for GICs to partner with startups and vendors to enhance their digital capabilities.

1. November 27, 2015
Evolving from process excellence to
innovation: Supporting digital agenda

2. Proprietary & Confidential. © 2015, Everest Global, Inc. 2
Everest Group is a leading global services research
and advisory firm
Range of servicesOverview
 More than 20 years of experience
advising Global 1000
 Recognized for positioning clients for
the next generation of global
services − combination of deep
insights, strategic decision-making
approaches, and implementation
expertise
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and research capabilities
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and business processes
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processes, 150 service delivery
locations, 500 GICs, 100 service
providers, and 18,000 outsourcing
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Implementation
Consulting services to capture
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customized tracking services
We serve enterprises, service providers, and service enablers
Services
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Enablers
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ProvidersEnterprises

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 Innovation and new
products/services
 Revenue streams
that are significant
contributors to
enterprise top-line
 Global leaders for
the enterprise
While process excellence is an imperative, mature GICs have
evolved to deliver multiple types of additional value for the
enterprise
Prove the concept
Cost arbitrage and
mature delivery
Business impact and
thought leadership
Competitive advantage
for the enterprise
 Teams for select
anchor functions
 Multiple pilots and
transitions
 Hi-quality delivery
 Process efficiency
 Capacity
augmentation
 Transformational
improvements
 High skill capabilities
 Vendor management
 Enhanced customer
experience
Low cost set-up
Scaled internal
provider
Value addition
partner
Strategic entity
driving innovation
2
1
3
4
Key focus
Value
drivers
Source: Everest Group (2014). Originally developed as part of the NASSCOM GIC value addition study (2013) by McKinsey & Company
Stage 1
Stage 2
Stage 3
Stage 4

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As part of this evolution, GICs are increasingly supporting the
enterprise’s digital agenda in multiple segments
Social & interactive Mobility Analytics
Cloud Robotics Process
Automation
Others

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Decrypting Digital | Services within segments
Digital segments Services
Social &
Interactive
 Social media monitoring
 Social strategy and consulting
 Social application development (front-end)
 Social content and web development
 Social analytics
 Others (e.g., social commerce and content, social media
marketing, digital marketing platforms)
Mobility
 Mobility testing
 Mobility strategy, consulting and platform development
 Mobile device management: MDM software management,
network management, security management
 Mobile applications development and maintenance
 Others (e.g., API management, mobility UX design,
connected device engineering / embedded software)
Analytics1
 Core analytics (industry standard analytics tools such as
SAS, SPSS)
 Data architecture and management: Data architecture,
master data management, data migration
 Data visualization and visualization implementation
 Big data analytics and consulting
 Analytics platform implementation
Cloud
 Application development, migration, and deployment:
Developing "green-field" apps with cloud features, migration
of apps to cloud platform / implementation, customization,
and integration of cloud apps
 Cloud consulting/ advisory services
 Infrastructure build: Designing and building cloud
infrastructure/ customization and implementation
 Infrastructure management and orchestration: Management
of cloud assets, lights-on/helpdesk, orchestration, and other
related activities
Robotics
Process
Automation
 Solutions which replace human action at various points of a
business process
 Others (e.g., business process management solutions,
workflow solutions)
 Intelligent RPA solutions (Artificial intelligence): Solutions
with in-built learning capabilities which can be leveraged to
handle judgment-oriented tasks with capacity to generate
and store data as part of their machine learning process
Miscellaneous
 Internet of Things (IoT): Smart devices and sensors, M2M
communication, network management
 Cybersecurity
1 Traditional business intelligence and data warehousing excluded from definition of digital used in the research

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GICs are well-poised to support the enterprise for
digital services
Why are GICs well positioned for this?
Established foundation with significant talent and expertise
Preference to use the GIC model given criticality of digital services
Strong integration with the core business
Increased endorsement from the parent

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Service offering evolution
Emerging Rapid growth Established
Impactcreatedtilldate
Mobility
RPA
Social &
Interactive
Cloud
Analytics is the most evolved digital segment; most
other segments are in initial-mid stages of evolution
Analytics
 Service across entire cloud stack
 Focused on “lift and shift” till date
 Increasing focus on ground up
development and architecture work
 Multiple GICs with scaled operations
 High level of ownership within the GICs
 Evidence of data scientists and machine learning
scientists being hired
 Adoption across most industries
 Focus largely on testing services
 Device management and
platform development to be next
areas of focus
 Evolving area with low ownership currently
 Typically leveraged for monitoring/listening
 Limited evidences of GICs driving social strategy
 Rapid growth, especially in BPS focused GICs
 Focus on automation of high-volume, repeatable work

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Digital segments
Delivery capabilities across industry verticals
BFSI Product & Technology MDR
Social &
interactive
Mobility
Analytics
Cloud
RPA
There are significant variations in GICs’ digital delivery
capabilities across industry verticals
High Medium Low

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While GICs deliver different types of analytics services, there
is increasing shift towards work that supports top-line growth
GIC analytics market by category of analytics services
2014; Percentage of FTEs
40-45%
20-25%
30-35%
BFSI CPG and retail
Technology
Market intelligence and reporting
Cost reduction and risk management
Topline growth
Global GIC Market
Source: Interview with market participants, Everest Group (2015)

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Organization Enablers Innovation driven by the GIC
GIC of a leading
U.S. computer
technology
company
 Global ownership for
analytics
 Enhanced focus on
hiring and training
data scientists /
decision scientists
 Trust relationship with
enterprise based on
regular alignment
 Enhanced customer experience by predicting
need of device maintenance and support
before an issue arises
– Blueprinting layout plan to install sensors on
products shipped
– Real time data analysis and pattern
recognition to predict possibility of need of
maintenance or replacement
 Enhanced customer experience and increased
revenue potential by real time modification of
website to highlight products which the
customer is most likely to choose
GIC of a leading
financial services
company
 Access to analytics
talent, which is
scarce in source
markets (UK)
 Alignment with
enterprise
 Increased product revenue by 17% through
analytics on product positioning. Analytics
helped refine market share, pricing and product
positioning
 Success metrics of the GIC’s analytics team
linked to product revenue growth
Analytics-driven innovation | Case examples

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Robotic Process Automation (RPA) is a key priority for GICs,
driven by the potential for high value creation at low risk
High value
Low risk
2. Better
service
delivery &
managea-
bility
1. Cost reduction
3. Quicker
time-to-
value
realization
4. Non-invasive
5. Easier
remediation
 Better quality, speed,
governance, security,
and business continuity
 Amenable to pilot
 Quick implementation
 Quick recovery of investment
 Non-invasive access to
underlying systems
 Simpler configuration controls
 Easier roll-back
 Cost reduction of 20-70%
(dependent on the
process and existing
delivery location)

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Best-in-class GICs leverage alternative ecosystem
partnerships to increase their impact delivered in digital
Partnership with start-ups
 Help drive innovation and speed
to market, foster cultural change
 Typical collaboration areas
include
– Technology: Mobile apps, IoT,
security
– Analytics: Search, social
media and big-data analytics,
e-commerce
– Operations: Automation, HR
(e.g., employee engagement)
 Multiple models to partner with
start-ups
Collaboration with vendors
 Collaboration with specialized
technology vendors and
traditional service providers
(e.g., robotics, mobility
applications development)
 Primarily led by BFSI GICs;
some adoption in Retail
 Key areas of focus:
– Process automation
– Analytics
– Mobility solutions
Innovative talent management
 Multiple focused initiatives on digital
talent
– Engaging environment at work
place (e.g., niche events,
hackathons)
– Specialized incentives (e.g.,
stock options, accelerated career
paths)
 Instances of GICs creating new
skills development and evaluation
mechanisms for highly specialized
skillsets such as analytics
Issues for GICs to consider in partnering with start-ups and/or established vendors
IP ownership / protection
One-time project based construct
or long-term partnerships
Strategic rationale for traditional
vs. alternative models

13. Proprietary & Confidential. © 2015, Everest Global, Inc. 13
Implications and call to action
GICs/shared services need to go beyond traditional sources to acquire
digital talent (e.g., train talent from other industries)
GICs/shared services need to be intentional about ecosystem partnerships
and evaluate strategic rationale (e.g., talent augmentation, niche skills)
Although digital is path-breaking, the road to success is incremental
innovation and not big-bang change

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