GCCs in the next normal

[PratyushGarikap]

The below is a summary of key takeaways from McKinsey's survey of large GCCs in their response to Covid-19 and what the future holds for them.

• Companies with large global operations had to respond quickly to COVID-19. Now their short-term fixes are turning out to offer longer-term opportunities.
• Best-in-class businesses achieved at least 100 percent of their pre-crisis baseline across Available Capacity, Client & Employee experience, and Productivity. These businesses are prepared to support remote working for 270 days and beyond, but respondents in the bottom quartile estimated that they could sustain this arrangement for fewer than 50 days
• Top performers are moving towards a rolling WFH plan post-lockdown, with 25 to 50 percent of employees working from home.
• Flexible work schedules are now being given serious consideration, to match the production capabilities and lifestyle needs of employees, aiming to improve the longer-term resiliency of GCCs.
• Best-in-class GCCs were able to support their client SLAs while others saw a significant dip of at-least 10%, due to productivity and capacity constraints.
• Organizations with pre-existing distributed delivery capabilities and collaboration tools were able to adapt more quickly to WFH requirements.
• Infrastructure (Internet bandwidth) continues to remain a performance inhibitor.

Moving forward, GCCs are expected (or should) consider the below with greater emphasis -

• Digitization in traditonal delivery channels and workforce monitoring.
• On-prem vs. Remote working and Flexible working schedules in job postings.
• Distributed agile practices for a "crash-proof" delivery execution.
• Cloud-based infrastructure to mitigate performance dips and availability windows of legacy on-prem infra in a remote-working model.

My 2 cents -

• Creating a safe WFH environment will be critical in supporting a longer-term remote working conditions. Many organizations are already providing anything from counselling-to-furniture in the interim while evaluating the best options for their employees.
• Digitization will now be an imperative for internal engagements. Large distributed teams cannot operate without a good measure of softwares to track their progress and work.
• Client Experience was already paramount for top performers and now it is even more important. Organizations that can improve their customer journeys better than the pack will be the winner, and GCCs are crucial in achieving this.

Original article:  https://www.mckinsey.com/business-functions/mckinsey-digital/our-insights/global-capability-centers-in-the-next-normal

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Pratyush Garikapati
ROM Architect
Blue Prism
India
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[NorahAlsudani]

Thank you for sharing Pratyush!

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Norah Alsudani
Communities Strategy Director
Blue Prism
London

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