86 per cent GCCs cite service expansion as top business priority: Report

With value-added services taking center stage, GCCs are moving towards becoming Global Value Organizations GVOs.To remain competitive on a global scale, GCCs must continue their service expansion journey and invest in operational efficiencies through the use of digital skills and technologies.

Service expansion is one of the top business priorities for around 86 per cent of global capacity centres over the next 12 months, according to a report.

The report by EY stated that compared to the 2021 survey, there is a notable increase of 36 basis points in the percentage of global capacity centres (50 per cent) citing service expansion as a top business priority.

The report, EY GCC Pulse Survey 2023, analysed the evolving operating model of GCCs and focused on four critical pillars of strategy, digital, talent, and security. It is based on a survey of 87 GCCs across diverse geographical locations and industry sectors.

The report said 69 per cent of global capacity centres (GCCs) surveyed are focusing on driving enterprise-wide digital transformation.

Around 55 per cent of participants have established a mature data and analytics practice as part of their digital strategy. This is closely followed by cyber security and robotic process automation, which support GCC’s digital transformation journeys.

The adoption of metaverse and blockchain technology has been slow compared to other technologies.

By leveraging digital technologies, 81 per cent of participants offer the scalability required to execute large-scale digital initiatives, and 79 per cent of respondents are acting as a global hub for digital skills and delivery, which is the backbone for their digital transformation journey.

According to the survey, 66 per cent of the surveyed feel that leakage of confidential information due to increased cyber-attacks is a major risk to their business.

The survey also revealed that 92 per cent of GCCs have a robust cybersecurity policy and a protected network, however, they still feel an increased risk of data breaches stemming from hybrid working arrangements remains a cause for concern.

EY India Partner and GCC Sector Leader – Technology, Media & Telecommunications Arindam Sen said, “Today, GCCs are moving from ‘back office’ organizations to a more integrated, ‘one-office’ structure. With value-added services taking center stage, GCCs are moving towards becoming Global Value Organizations (GVOs).

''To remain competitive on a global scale, GCCs must continue their service expansion journey and invest in operational efficiencies through the use of digital skills and technologies.