Every enterprise in the digital age has to be a global enterprise. And in particular, it needs to have an effective global delivery model to make progress on the ambitious technology and operations agenda, which most firms tend to have in the digital age. Enterprises can develop this global footprint either by partnering with service companies or by establishing their own dedicated technology and operations centres in emerging economies. Both these entities can be defined as Global Delivery Centre or GDC. While GDCs have existed for many years, their proposition and operating model needs to change significantly if they are to meet the new expectations of the digital age. Enterprises are facing the dual challenge of protecting their existing revenue streams while investing for future growth. This implies CIOs and COOs have to reduce costs while simultaneously increasing the velocity of transformation/innovation as well as addressing the skill gaps required for building cutting-edge capabilities. Only a global delivery model that taps in the large, high quality yet lower-cost talent pool in emerging economies like India and Eastern Europe can achieve these seemingly contradictory objectives.
Historically, GDCs have been seen as cost and execution centres. This needs to change and they have to become revenue and innovation centres. This is a fascinating opportunity for them. Enterprises that are able to make this transformation and leverage global delivery effectively stand to gain a competitive advantage in the digital age.