Taking Global in-house centers to the next level

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Today's business environment is global, complex, agile, and influenced by the digital revolution, which means it is accelerating. To keep up, many multinational corporations are seeking to restructure their service delivery models and to integrate global in-house centers (GICs) in more expansive ways.

Introducing the Global In-house Center (GIC) Capability Maturity Index

Over the last few years, more than 750 multinational corporations have established Global In-house Centers (GICs) in India¹ in an effort to leverage the nation’s highly skilled, low-cost talent pool to reduce cost of ownership and to serve fast-growing global and regional markets. Historically, the maturity of these GICs has evolved gradually, taking years to progress from dedicated centers set up for one or two functions to multifunction centers providing value-added services both locally and globally.

GICs are being challenged to rapidly evolve their operating models to move up the value chain. As such, they are increasingly transitioning from being pure play cost centers to becoming centers of excellence delivering innovation, quality, and strategic value.

Aspiring to higher levels of capability maturity, however, raises a number of questions for GICs and their parent organizations, such as:

• What defines “capability maturity”? And where does our GIC stand now?
• How do we enhance the capability maturity of our GIC?
• How does our organization’s service delivery and shared services strategy compare to others?
• Where should we focus our limited resources? How do we prioritize?
• How do we continue to improve operations and optimize service delivery?
• What are some ways to improve service levels while maintaining the right cost structure?
• How do we incorporate outsourcing as part of the service delivery model?

To address these questions, and others like them, Deloitte in collaboration with the Indian School of Business (ISB), developed the GIC Capability Maturity Index (CMI).

The GIC CMI is composed of two parts, a curve that illustrates the progressive capability maturity levels for a GIC and a framework that gauges the maturity of participating GICs across the key areas of strategy, control, coordination, talent, and operational performance.

Source: Deloitte

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