Outsourcing has always taken place out of the need of cost saving and better value. Outsourcing, however, is not a term that has originated in today’s world but has been in existence since over hundreds of years ago for the similar two reasons of; cost saving and lack of skilled labor. With technological advancements, development and growth of telecommunication and internet, distances merged and nations became interconnected. With this sophistication and change in work platform, work could be moved from one place to another without the movement of labor, thus giving a cost and skill advantage to the countries demanding the same. For example, this means that a U.S company would continue to get the same advantage through outsourcing of work i.e. cost saving and better value.
Captive Information Technology (IT) Centers of global corporations, also known as GICs (Global In-house Centers) have risen out of this very principle of outsourcing enabling a company to gain the standard benefits of traditional outsourcing along with handling its own operations and create a privately owned strategic center enabling data security, transparency of costs, risk reduction and simplification of work. Captive centers work on this very principle of reducing business anxiety by enabling companies to reduce risks and simplify their work at minimal costs. It helps in gaining cost benefits alongside giving the best possible assurance over the persistent concerns of intellectual property and security of data.
When words linking to ‘Development Outsourcing’ arise, India is automatically drawn to everyone’s attention. This is irrespective of the fact that there are numerous other countries that are developing as solid contenders to India for outsourcing. What makes India the First Preference for Outsourcing Software Development?
Along with the well understood universal reasons of speedy work and less expensive quality talent, India has several propelled traits that draw large companies along with SMBs to set up their captive centers or outsource their product advancement work. Every day new companies are setting up their operations in India, which makes it the profoundly focused destination. Indian IT industry continually attempts to refresh and advance their insight, aptitude and devices with the fast evolving technology. In this manner, they are able to cater to diverse ventures of global enterprises. The internet simplifies complex co-working amongst groups across geographies. In addition to accessibility to exceptionally technology talent, India offers low cost with unmatched flexibility making it the No. 1 destination for IT outsourcing and GIC set-ups. The Indian Government has also scaled up measures and practices to help create ease in GIC set up and business functionality in India.
Related Blog – Outsourcing to Rightsourcing through Virtual Captives
Global CXOs believe that captive centers in India will be an integral part of their overall strategy for the future. There has been a great deal of maturity in the GIC model in recent times. With GICs moving up in the value chain, they are now building up enterprise-wide digital transformational capabilities. This gives a pioneering role in providing the sustained competitive advantage to their global enterprises. Recruiting the right management and leadership which include the qualities of technical as well as business perspectives has become a very big challenge. This has been easily taken care of by service providers of captive centers for companies abroad. It also provides the right kind of balance between leadership and technical expertise which is essential for ease of functionality. It is therefore imperative for any organization to create a strong brand name along with consistent people’s practices which are developed and tailor-made with respect to the country. This is rightfully done by the set-up of an independent and secure captive center in India. Along with the right talent, there is also a development of a strong support ecosystem which includes core operations such as Admin, Finance, & Corporate Communications. These are made very well defined and sustainable in a GIC model.
According to Nasscom, the GIC market has witnessed a double-digit growth in the last five years to reach $19.4 billion. The landscape in India is diverse and dominated by over 1,000 GICs and account for about a fifth of India’s exports. With the rapid percentage rise in the number of GICs in India and the constantly changing technology need and talent, there are several captives who have successfully achieved cost optimization. However, there also been a challenge of ever-increasing operating costs and the constant need for rightful management. It has become imperative that GICs deliver quality value to their parent organizations at reduced costs for which it is very necessary to partner with the right team.
ScrumStart serves as the right partner which helps in generating business outcomes through co-innovating solutions using cutting-edge technology, proprietary products, innovation in talent & productivity and guaranteed cost reduction through our innovative Virtual Captive Delivery Model.
About the Author:
Mr. Santosh Panicker, CEO ScrumStart, is a specialist in setting up business processes and has established himself as an inspirational leader in the corporate world. Mr. Panicker has demonstrated his capabilities in setting up end- to -end HR, legal, and business process operations for 9 start-ups through his career years. He has over 22 years of experience working across diverse industries including IT, FMCG, Retail, Automobile and consumer durables with blue chip companies