Introduction

Global In-house Center (GIC)¹ operations have become a significant part of the global sourcing landscape. As the GIC model matures, GICs are exploring different mechanisms to deliver value beyond savings to their parent organizations. In order to effectively focus their future efforts and investments on delivering value beyond savings, there is a need to build common understanding within the enterprise on the sources of value and the capabilities required to deliver more. To help assess this, Everest Group conducted a survey-led research to gather perspectives on issues related to value beyond savings.

Scope and methodology

• This research gathers perspectives from GIC and parent stakeholders across a wide cross-section of organizations on the following:
  • Current performance of GICs on cost savings and service levels
  • Permission to deliver value beyond cost savings
  • Focus of future delivery (prioritization of value additions)
  • Key capabilities required to deliver enhanced value
  • Key elements of a healthy parent-GIC relationship
• The study is based on the responses received from 164 senior executives across 65+ organizations
• The respondent organizations are spread across a wide range of industry verticals, locations, scale of operations, and functions undertaken. Together, they represent a significant sample
• In addition to the survey responses, the findings have been complemented with select interviews of both GIC and parent stakeholders
• The report also compares current results with results of a similar survey done in 2007

Key findings

• There is a stronger acceptance of GICs’ performance on cost savings and service levels compared to five years ago
• Also, there is stronger permission for GICs to deliver value beyond cost savings, as opposed to five years ago
• GIC and parent stakeholders’ future expectations are largely aligned on prioritization of process-related value additions
• Strong parent-GIC collaboration is a critical enabler to deliver value and is considered more important than “hard” skills to deliver value

1  Formerly known as "Captive"