By MS Ramanujam, IT Director, Equiniti India
AI is no longer a buzzword for Global Capability Centres (GCCs); it’s a transformative force driving cost savings, improving efficiency, and unlocking new possibilities. Historically, GCCs enabled global companies to leverage talent with cost arbitrage as an additional benefit. Also, they made possible the testing of novel ideas in a smaller environment (much like in a Sandbox) before applying them at a larger scale. As AI adoption continues to grow, driven majorly by the availability of talent in cutting-edge technologies such as AI, Machine Learning, Data Analytics, etc., GCCs that strategically leverage its potential will be well-positioned to thrive in the increasingly competitive global business landscape. In a 2023 survey conducted by KPMG, it was revealed that 84% of GCC leaders have embraced AI in various capacities, underscoring the growing adoption of AI within global capability centres.
Particularly, AI adoption is prominently observed in specific functions within GCCs, including finance and accounting (72%), HR (68%), and IT (65%), as indicated by the same source. Moreover, regional disparities are evident in the penetration of AI across GCCs, with North America and Europe taking the lead, trailed by Asia Pacific and Latin America. A McKinsey Global Institute report estimates that AI could automate up to 800 million jobs globally by 2030, with significant potential for cost savings in GCCs handling tasks like data entry, document processing, and customer service. Reports also point to the fact that companies adopting AI solutions, both locally and across their global operations, are poised to achieve 27% higher profitability.
The role of Artificial Intelligence (AI) in reshaping the operations of global capability centres (GCCs) is monumental, offering unparalleled efficiency and adaptability in navigating today’s multidimensional business environments. Through the strategic incorporation of AI technologies, GCCs are revolutionising their approaches, leveraging advanced automation, data-driven insights, and personalised customer experiences to foster sustainable growth and maintain competitive edges.
In customer experience, AI-driven solutions are increasingly prevalent. Gartner forecasts that by 2025, 85% of customer interactions will be autonomously managed by AI, highlighting the pervasive influence of AI in customer service. Thus, in the dynamic landscape of modern business, the pursuit of competitive advantage and operational excellence remains paramount. To meet the evolving demands of an interconnected global economy, organisations are increasingly turning to innovative technologies, chief among them being Artificial Intelligence. Within this realm, the concept of a Global Capability Center (GCC) empowered by AI emerges as a pivotal tool, offering businesses a multifaceted approach to address operational complexities, drive strategic decision-making, and unlock sustainable growth.
An AI-powered Global Capability Center (GCC) lies at the heart of organisational metamorphosis, seamlessly integrating cutting-edge AI algorithms, sophisticated analytics, and real-time data insights to revolutionise business operations across geographies and functions. By tapping into vast reservoirs of data stemming from internal processes, market fluctuations, and customer engagements, the GCC emerges as a centralised nexus for distilling actionable intelligence, enabling enterprises to unearth profound insights, foresee trends, and make astute decisions.
The amalgamation of AI into the GCC framework heralds a plethora of benefits, chief among them being the augmentation of operational efficiency and agility. Through AI-driven automation and predictive analytics, companies streamline workflows, optimise resource distribution, and accelerate responses to dynamic market shifts. Managing international compliance and risks embedded in processes using AI is another key advantage accruing to GCCs in addition to achieving operational excellence using automation. Whether refining supply chain logistics, orchestrating workforce deployment, or elevating customer service standards, the GCC empowers organisations to attain heightened levels of efficiency and adaptability, culminating in tangible enhancements in
productivity and cost-effectiveness.
Moreover, the AI-powered GCC propels strategic innovation and expansion, empowering enterprises to seize nascent opportunities and navigate intricate business terrains with surgical precision. Employing advanced predictive modeling and scenario analysis, businesses foresee market fluctuations, identify developing trends, and devise pre-emptive strategies to capitalise on evolving dynamics. From pioneering product innovations to strategic market penetrations, the GCC furnishes organisations with a strategic compass to fuel sustainable growth and uphold competitive supremacy in an ever-evolving marketplace. Thought leadership and AI innovation within GCCs also benefit the wider business with improved customer engagement using tools such as chatbots, predictive analytics, etc. that provide personalised content/mode of interaction with the customer.
Furthermore, the AI-infused GCC nurtures a culture of perpetual refinement and learning within enterprises, serving as a conduit for incessant optimisation. Through data-centric insights and performance analytics, businesses monitor pivotal performance indicators, chart progress vis-a-vis strategic imperatives, and pinpoint areas ripe for enhancement. Harnessing AI-driven intelligence, organisations iterate and evolve in real-time, aligning seamlessly with shifting market paradigms and evolving customer demands.
Facilitating strategic decisions by analysing vast amounts of data and making recommendations is an undeniable and definite advantage of integrating AI with GCC’s operations Global Capability Centres (GCCs) emerge as transformative hubs for multinational corporations, especially with the integration of AI technologies. Offering significant cost savings in labor and infrastructure, AI-driven GCCs provide enhanced access to skilled talent, scalability, and flexibility to meet dynamic business demands. By leveraging AI capabilities, GCCs empower corporations to focus on core competencies while tapping into global reach and expertise, thereby positioning themselves as indispensable assets in the modern competitive environment.