Pressured to become innovative, agile and digitally-adept, many businesses are looking to glean more value from their global in-house centers (GIC). Indeed, the upsurge in GIC adoption is attributable to more businesses setting up in-house service centers to support R&D/engineering and digital services, according to Everest Group.
However, as discussed in the first article in this series, businesses face three key challenges when it comes to shifting the role of an already established GIC from a cost containment center to an innovation hub. One of these is encouraging existing GICs to embrace digital marketplace dynamics and adopt digital technologies such as cloud, big data, advanced analytics, robotic process automation and artificial intelligence. Glacially slow adoption of all of these necessary digital capabilities hampers existing GICs from contributing to business growth strategies.
The gap in GIC digital adoption is often deeply rooted in the service center’s origins and what drove the business to set one up in the first place. Typically, GICs are focused on executing mundane and repetitive back-office processes as efficiently and cost-effectively as possible. Further, businesses tend to hold the GIC at arm’s length rather than as an integrated business unit, which often leaves them behind in digital adoption curve.