As discussed in the first article in this series, businesses face three key challenges when it comes to moving their global in-house centers (GIC) up the maturity curve. One of these challenges is encouraging the GIC to adopt digital technologies, and a second is managing operational costs over the lifespan of the GIC.
Historically, the argument for establishing a GIC has been focused largely on cost savings, and for good reason. The savings are often realized in the first months of the setup, and continue over the next couple of years. What many organizations don’t realize is that — when the workforce structure, governance policies, productivity measures and operational models are not carefully managed — the costs can begin to escalate at the three- to five-year mark. For businesses and GICs that aren’t equipped with the management talent to oversee these complex areas, the cost savings can quickly dwindle and undermine the GIC’s value proposition.