The Rise of GIC Advisory Services in India

In recent decades, India has emerged as the preferred destination for numerous prominent global corporations looking to establish their technology and other business support functions, leading to the growth of Global In-house Centers (GICs). The country boasts a plentiful pool of skilled workforce, complemented by favorable government policies, making it a top choice for establishing GICs, shared services and global business services centers. This trend has prompted mid to large sized talent management firms, management consulting firms, and specialized advisory companies in India to introduce GIC advisory as a separate service offering. These firms are now establishing dedicated GIC advisory department or units focused on providing guidance to early-stage GIC entrants or those planning to expand or establish new GIC arms in India.

What kind of Services GIC Advisory departments are offering?

In addition to serving as a vital knowledge partner, legal or compliance advisor, efficient cost structurer, and global integrator for multinational corporations (MNCs), GIC Advisory services have also been instrumental in providing the following assistance to Global In-house Centers (GICs):

• Operation Setup: GIC advisory can assist organizations in establishing their in-house centers by offering insights into location selection, legal and regulatory compliance, talent acquisition, infrastructure setup, and technology implementation. This guidance ensures that the operational setup aligns with the organization's goals and objectives.

• Market Research: GIC Advisory experts assist multinational corporations in mapping the entire market according to their specific requirements, offering a thorough analysis and insight into the global landscape related to shared services, outsourcing, and offshoring.

• Organization Structuring: GIC Advisory experts assist organizations in determining the hierarchical levels of management, assigning titles and designations at each level, and defining Key Result Areas (KRAs) and Key Performance Indicators (KPIs) associated with each role. Moreover, they aid these GICs in recognizing their key leaders and initial team members.

• Legal and Regulatory compliances – Adherence to the legal and regulatory obligations of the host country is imperative for the smooth operation of GICs. The Indian government supports GICs with incentives and policies, requiring organizations to seek advisors familiar with these regulations to ensure compliance, avoid issues, and optimize incentives.

• Location Advisory services: Selecting the optimal location for a GIC (Global In-House Center) is vital at every stage, considering factors such as competitors, talent availability, infrastructure, cost-effectiveness, and the overall business ecosystem. GIC advisory experts can play a significant role in guiding this strategic decision-making process.

• Operational Risk management: Certainly, GIC advisory services play a vital role in operational risk management by assisting Global In-house Centers (GICs) in identifying potential threats and vulnerabilities. These advisory services work towards establishing effective controls to monitor, evaluate, and mitigate these risks. The goal is to create a robust framework that enables GICs to proactively address challenges and enhance their overall resilience to potential disruptions.

• Technologies and Innovation: Numerous GICs establish R&D centers with a vision centered on innovation. To maintain competitiveness, GIC advisors can support these centers by spearheading digital transformation efforts, and integrating advanced technologies like automation, data science, and AI to enhance their capabilities and productivity.

• Talent Mapping Services: These GIC advisory teams map the existing talent of the firm with the talent available in India to identify similarities and gap to propose the right talent management strategies.

• Total Reward or Compensation Advisory: The effectiveness of any talent management strategy is notably impacted by total reward and compensation approaches. Given the geographical diversity, there is a consistent need for advisors capable of aiding in the creation of fitting compensation structures and designing comprehensive total reward programs aligned with India's labor laws and regulations, specifically tailored for GICs.

• Recruitment Strategies: GICs explore diverse recruitment strategies tailored to various hiring needs, and GIC advisory experts can provide guidance on selecting the optimal combination of strategies to ensure effective talent management within their centers. Including services. One such service is to help them choose the right Talent Management or RPO partners if required.

• Cost Analysis – GIC Advisory firms perform an in-depth cost-benefit analysis to assess the financial viability of establishing GICs in various locations in stipulated time. This involves comparing labor costs, infrastructure expenditures, and other operational expenses across potential sites.

• GIC advisory divisions also offer expertise in Early Entry Strategy, Internal Process, and Policy Setup Advice, Scale-Up Strategies, and Exit Strategies.
  

India's ascent as a hub for Global In-house Centers (GICs) has created a flourishing landscape, with more than 1400+ GICs shaping the nation's business ecosystem. This surge presents a myriad of opportunities for GIC advisory firms to thrive, offering indispensable guidance across various facets of operation. The allure of India's advantageous geographical, economic, and social conditions enhances the appeal of GIC advisory services. Ultimately, these services strive to empower organizations to extract maximum value from their global in-house centers, ensuring a positive contribution to the overall success and competitiveness of the company. As the GIC landscape in India continues to evolve, the potential for growth and collaboration remains robust, marking a compelling trajectory for both GICs and GIC advisory firms alike.