ISG to Assess Providers of Global Capability Center Services

Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm, has launched a new research study examining the emerging ecosystem of providers that support their clients’ global capability centers.

The study results will be published in a comprehensive ISG Provider Lens report, called Global Capability Center (GCC) Services 2025, scheduled for release in February 2025. The report will cover providers that offer process reengineering, benchmarking and digital transformation services to help enterprises design, launch and optimize the performance of their GCCs.

Enterprise buyers will be able to use information from the report to evaluate their current vendor relationships, potential new engagements and available offerings, while ISG advisors use the information to recommend providers to the firm’s buy-side clients.

In recent years, companies have been launching GCCs, often called captives, to gain access to specialized talent and cutting-edge technologies to optimize processes and enhance operational efficiency. An ISG Market Lens study last year found cost savings and access to talent were the top two business reasons for setting up a GCC.

This trend has led to greater collaboration between enterprises and those service providers that can help establish and enhance company-owned GCCs. GCC service providers help GCC owners identify optimal operating models that align with their strategic and financial goals. This collaboration, ISG says, may extend to helping the GCC navigate the complex regulatory and tax landscape that comes with conducting business internationally.

“Service providers no longer view GCCs as competition but as opportunities to leverage their expertise and offer mutually beneficial services,” said Namratha Dharshan, chief business leader, ISG Research. “A good GCC service provider can help the GCC remodel its business operations, usually by creating detailed business cases that not only justify the owner’s investment in the GCC but help it to identify the right geographies and markets in which to conduct business.”

ISG has distributed surveys to more than 35 GCC service providers worldwide. Working in collaboration with ISG’s global advisors, the research team will produce two quadrants representing the GCC services the typical enterprise is buying based on ISG’s experience working with its clients. The two quadrants are:

• GCC Design and Setup assessing providers that help establish GCCs by assisting with operating model design, consolidating regional operations within the GCC and building frameworks for the smooth functioning and scaling up of operations.
• Optimization and Enhancement evaluating providers that help a GCC maximize its value to its owner organization by automating and streamlining GCC processes. These providers build operating frameworks that foster cultures of continual improvement through such methodologies as Lean, Six Sigma and design thinking.

The study will cover the global GCC market and examine products and services available worldwide. ISG analyst Gaurang Pagdi will serve as lead author of the report.