Adoption of Hybrid Sourcing in GICs – Driving Impact through GIC-Service Provider Collaboration

7 Apr 2015


Background and Context

With increasing maturity of the Global In-house Center (GIC) model, GICs are working with service providers to deliver services (defined as hybrid sourcing in this report). Some GICs manage service providers on behalf of their parent organization. Additionally, mature GICs are involved in shaping the parent’s sourcing strategy and managing the sourcing program. In order to explore this further, a survey was conducted by Everest Group in collaboration with SSON and Nasscom. The focus of the survey was to understand key adoption trends of hybrid sourcing and provide a snapshot of current market practices. All results from survey participants were analyzed to assess the adoption trends of hybrid sourcing in offshore GICs as presented in this report.

Adoption of Hybrid Sourcing


This research leverages Everest Group’s proprietary databases, market intelligence, inputs from market participants, and survey results. The survey was focused primarily on offshore GICs engaged in hybrid sourcing and captured the key dimensions such as organization profile, hybrid sourcing strategy and objective, scope and approach to hybrid sourcing, and service provider relationships.

This report is relevant to a broad set of stakeholders – buyers / parent organizations, service providers, GICs, and industry influencers (investors, industry bodies, etc.)


In this research we have analyzed adoption of hybrid sourcing among GICs by assessing the following dimensions:

  • Hybrid sourcing strategy, level of adoption, and benefits realized section provides an overview of the overall adoption of hybrid sourcing in GICs and also extent of service provider usage across various functions and verticals. It also highlights the benefits which could be achieved by GICs by leveraging service providers and to what extent they have been realized (highlighted through survey findings and select case examples)
  • GIC maturity and experience with the hybrid sourcing model section provides an overview of GICs’ involvement with service providers as mapped to different stages of GIC maturity. It also provides an understanding and market overview (based on survey findings) on the level of involvement of GICs across various areas of service providers usage (e.g., use for service delivery, support/implement the service provider sourcing program for the parent, identify global sourcing opportunities and design the sourcing model strategy)
  • Engagement models used for hybrid sourcing section provides an overview of delivery constructs / pricing structures used by GICs in overall adoption of hybrid sourcing. Future trends and current practices are highlighted through survey findings and select case examples. It also provides extent of service provider usage and type of service providers leveraged
  • Future outlook section provides a forward looking view of GICs’ involvement with service providers and initiatives likely to be pursued by GICs to improve service provider delivery. It also highlights some of the challenges ahead for GICs in order to increase the involvement with service providers.

Extent of Provider Usage

The report concludes with future outlook for service providers highlighting the key opportunities for service providers to work with GICs.


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