GCCs will not kill good old IT baby-sitters. But...

...outsourcing cribs will change as core-work control, intellectual information, ease of direct engagement and expertise become strong reasons for GCCs to sit in chairs where service providers once reigned.

- Pratima H

It is not a surprise anymore to go to a housewarming party and walk about with no signs of a working kitchen. And no porch. For that matter, no washing machine parking-spots anywhere as well. The more the new generation lives in apps and on things on hire, the more real estate they have for the gaming zone or the gym. But then, the flip arrived. Many people have started going back to homemade food and owning cars. And like these 'lifestyle switchers', many global companies also realised that they would rather trust their children in their own hands instead of relying on a governess. Not because she failed on being Mary Poppins but because when you love your kid, it is just too hard to see that treasure being raised by someone else. Is that why GCCs are promising to be the next new model after outsourcing, insourcing, nearshoring and captives? Mohammed Faraz Khan, Partner and Head of GCC Practice - EMEA, Zinnov (A global management and strategy consultancy firm) gives a tour of this new layout.

Let's start first with how, and why, the IT industry has evolved from complete outsourcing paradigms to GCCs today? What are the industry's contours today and do service providers now lose their spot?

The industry can be divided into three categories. The top service providers, the GCCs and the startups. When global companies wanted work done some years back, they would easily hand it over to an Infosys or a TCS. Outsourcing became the common model due to its low cost and vast scale. These providers could also turn out immediate project completions because of the benches they kept.

It was logical. It was prominent. Over the years, outsourcing vendors have, perhaps, created some inefficiencies. The talent in major outsourcing pools like India and Manila, now, does not aspire to work for a provider but for a global brand. That's where Global Capability Centres rise.