Join us as we reveal findings from the annual “Mapping the Next: Key Priorities for 2025” study, offering an inside look into the top concerns, expectations, and goals of industry leaders for the coming year. This session will spotlight leaders’ core priorities, such as technology adoption, digital transformation, generative AI, customer experience, and sustainability.

Our experts will also discuss critical global services decisions, including build vs. buy strategies, in-house vs. outsourcing, onshore vs. offshore operations, and the balance between long-term and short-term contracts.

This is your chance to hear exclusive, high-impact insights and gain an edge so you can make more informed decisions that will improve organizational resilience, competitiveness, and chances of future success for 2025.

What questions will the webinar answer for the participants?

• What are the trends that will shape the global services market in 2025?
• What are the likely changes in sourcing spend, sourcing strategy (in-house vs. outsource), and locations?
• What is the enterprise outlook on tech and AI adoption in 2025?
• Which digital services and next-generation capabilities are expected to be in demand?
• How are outsourcing deals, enterprises’ leverage of service providers, and bill rates expected to change?

Who should attend?

• Enterprise/business leaders (CIOs, CDOs, CTOs, CFOs, CPOs)
• Global sourcing leaders
• GBS/shared services center heads
• Leaders at IT and BP providers

WATCH THE WEBINAR ON-DEMAND

Often, deal conversations are impacted by cost and margin pressures across geographies. Standard and commodity IT service rates, as well as ACV/TCV reduction for managed services, are likely to decrease in the coming year, making it vital for service providers to account for this decline in ongoing or near-term bids.

In this insightful webinar, Everest Group experts Parul Jain, Manish Malik, Harshit Mittal, and Ricky Sundrani  explored the price and cost forecasts for the next 6 to 12 months across key categories, such as Applications, Infrastructure, and BPO services, across locations such as North America, Europe, and India. The team will discuss whether leveraging low-cost locations might be the ideal route for deal fee reduction for service providers, as well as other levers for managing this predicted cost and price decline.

From this webinar, attendees will understand the latest standings on leading global service delivery locations, key factors driving price and cost changes, and the best strategies for navigating changing markets and mitigating margin erosion.

What questions did the webinar answer for the participants?

• What are the key market trends influencing the shoring and sourcing decisions in 2024?
• What are the price and cost changes expected over the next 6-12 months, and what will drive these changes?
• How will they impact the overall commercial deals, and what are service providers doing to navigate through these changes (such as leveraging low-cost locations, gen AI, etc.)?
• How are service providers managing potentially shrinking margins?

Who should attend?

• Finance leaders
• Pricing leaders
• Price-to-win leaders
• CPOs
• Heads of procurement
• CIOs
• Location strategy heads
• Workforce strategy heads
• Indirect and strategic sourcing leaders
• Heads and buyers of outsourced services
• GBS leaders managing IT and BPO outsourcing contracts
• Category managers

In recent years, Global Capability Centers (GCCs) / Global In-house Centers (GICs) have experienced a remarkable surge in popularity amongst enterprises worldwide, with headlines frequently highlighting the establishment of new GCCs across various regions.

In 2023 alone, over three hundred GCCs were set up in offshore and nearshore locations, and this trend is expected to continue in the near future. This growth is not confined to specific verticals or geographies either, as beyond traditional strongholds like the US and Western Europe, enterprises in regions such as Asia Pacific and Japan are also establishing new GCCs. From an industry vertical perspective as well, we are seeing growth across most major segments including financial services, telecom, media & technology, retail and consumer goods, etc.

Reach out to us to discuss this topic further with our expert analysts.

The expanding role of GCCs

The role of GCCs within enterprises has evolved significantly. Initially, GCCs were primarily established for cost arbitrage, overseeing basic support functions such as IT services , back-office operations, and customer support.

However, today’s GCCs have moved up the value chain, delivering a wide array of strategic GCC functions. These include research and development (R&D), product development, digital transformation initiatives, data analytics, and even end-to-end supply chain management.

The evolution of GCCs has been driven by several factors including:

1. Access to global talent: GCCs enable enterprises to tap into talent pools across the globe, particularly in regions known for specific expertise. For instance, India and Eastern Europe have become hubs for IT and software development talent
2. Cost arbitrage: While cost savings remain a key driver, the focus has shifted to achieving cost efficiency without compromising quality. GCCs allow enterprises to optimize operational costs while maintaining high standards of service delivery
3. Innovation and agility: By establishing GCCs, enterprises can foster innovation and agility. GCCs often operate in a start-up-like environment, promoting experimentation and rapid prototyping of new ideas and solutions

A shift in enterprise strategy: Partnering with providers

One fundamental shift accompanying the rapid proliferation of GCCs is the increasing openness of enterprises to partner with providers for setting them up. Traditionally, enterprises focused on growing their GCCs independently or through selective supplier relationships. However, there is now a marked shift towards greater collaboration with providers throughout the GCC lifecycle, including the setup phase. Just a few years ago, less than 25% of GCCs were established with the involvement of providers. Today, that number has risen to around 50%, and we anticipate further growth in the future.

Providers also offer various models to enterprises to support new GCC setups. These primarily include the assisted model, joint venture model, and Build-Operate-Transfer (BOT) model. While the predominant model remains assisted set-ups (support related to initial set-up), the BOT (Build-Operate-Transfer) model – offering support for set-up, scaling, and operation until the center can function independently is rapidly gaining traction. Some of the factors driving adoption of BOT include cost pressures, margin constraints, and talent wars. For instance, while <10% of GCCs were set up using the BOT model a couple of years ago, that figure is now closer to 40%. Combined with the assisted model, these two approaches account for over 90% of GCC setups supported by providers.

Providers have started to capitalize on the GCC market

Providers have also started to realize the growth opportunity with the GCC set-up market, and this has prompted them to adopt a more nuanced approach. Multiple providers have created dedicated business units focused solely on the GCC market, employing specialized sales teams aligned with GCC accounts. The key performance indicators (KPIs) for these teams primarily include revenue growth from the GCC market segment. In general, enterprises have a range of provider partner options, with three segments of providers each offering a different value proposition:

1. Traditional system integrators: These include major players such as Accenture, Tata Consultancy Services (TCS), Infosys, IBM, and Cognizant. These companies have been serving GCCs historically across the life cycle including GCC set-up support, primarily on the services side
2. Big-4 consulting firms: Firms like EY, Deloitte, PwC, and KPMG fall into this category. They have already been supporting the GCC market on the consulting/advisory side and have expanded their service offerings to include managed services within GCC setups in the past few years
3. Specialist providers: These are niche firms that focus exclusively on GCC setups, such as ANSR. They offer specialized knowledge and tailored solutions for enterprises looking to establish GCCs (primarily in the assisted model). However, in general, they do not take ownership of service delivery

Over the past year, providers have increasingly engaged in strategic GCC alliances and partnerships to enhance their presence in this segment. Accenture’s recent investment of US$ 170 million in ANSR and their subsequent collaboration is anticipated to drive disruption in the broader market. Similarly, in 2023, Gloplax and KPMG formed a partnership to better serve their clients in the GCC setup space.

Looking ahead, we expect a surge in collaboration across different provider categories and strategic GCC investments, as providers position themselves to better serve their clients.

The future of GCCs and provider collaboration

The future of GCCs looks promising, with continued growth anticipated across various industries and regions. As enterprises increasingly recognize the strategic value of GCCs, the collaboration between enterprises and providers will become even more crucial.

Providers will continue to play a pivotal role in enabling enterprises to set up and scale their GCCs efficiently.

Key trends to watch in this space include:

1. Adoption of hybrid models: Enterprises may opt for hybrid models that combine elements of the BOT and Assisted Virtual Models, allowing for greater flexibility and customization
2. Emphasis on digital transformation: GCCs are set to spearhead digital transformation initiatives by harnessing advanced technologies such as artificial intelligence (AI), machine learning (ML), and automation. Providers are anticipated to play an increasingly significant role in facilitating this transformation

Conclusion

The growth of GCCs represents a significant shift in the global business landscape. Enterprises are increasingly leveraging GCCs to drive innovation, achieve cost efficiency, and access global talent.

The involvement of providers has been instrumental in facilitating this growth, offering various models and expertise to support GCC setups. Enterprises must carefully assess their options and choose partners that align with their strategic goals. To make an informed decision, especially in the GCC setups space, check out the report: GIC Setup Capabilities in India – Provider PEAK Matrix^® Assessment 2024

This report uses Everest Group’s proprietary PEAK Matrix^® framework to evaluate the capabilities of 24 providers in the GCC space, assessing the overall vision, capability, and market impact of these providers.

To discuss this topic in more detail or for a detailed analysis, please contact Akshay Mathur or Udit Anand.

impact sourcing

VIEW THE FULL REPORT

Talent

VIEW THE FULL REPORT

Global Service

VIEW THE FULL REPORT

Global Services

VIEW THE FULL REPORT

What makes Lithuania an attractive destination for global services delivery in the Nearshore Europe region?

Watch Everest Group experts Sumit Kumar, Practice Director, and Gunjan Mundra, Senior Analyst, for an insightful LinkedIn Live session exploring the benefits and challenges of Lithuania as a nearshoring destination. Drawing from on-the-ground expertise, the discussion will include learnings and recommendations for those already running operations in this area or considering adding Lithuania to their locations portfolio.

Watch on-demand to understand what works well in this Baltic state and what can be improved from a global services delivery perspective, and come away with insights to aid their own location portfolio management and adjustment.

During this in-depth LinkedIn Live, we discussed:

• Considering talent availability , financial attractiveness , operating environment , and more, what is the true value proposition of delivering global services from Lithuania?

• How do government developments and incentives impact Lithuania’s potential?

• What challenges will an organization need to navigate if they are considering setting up a delivery center in Lithuania?

Geographies

VIEW THE FULL REPORT

Talent

VIEW THE FULL REPORT