The Future of Me Nasscom KPMG Report

The future
of me
Reimagining Global Capability Centres
|a|
KPMG.com/in
Table of
|b|
contents
© 2018 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms
affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
The future of me - Reimagining Global Capability Centres
1
Foreword
See the future: 2
Get there faster
3 Key trends and
impact on skil s
Painting the picture 4
of future GCCs |c|
5 What GCCs should

be doing now
GCC: Skil s of the future 6
Foreword - KPMG
We recognise the excellent Change is best done with conviction
contribution made by the GCC and by affirmation by many
community in shaping the individuals in the community that
services economy and providing then create a movement to ensure
a competitive edge to the overall India is resilient to business model
global enterprise. The intent of changes and we have the collective
this report is to enable actionable intellectual horsepower to navigate
thoughts in leaders and to respond the sea of change that beholds us.
to the multitude of trends. At times
We hope that we are able to nudge
a small chore seems innocuous and
the community gently towards being
not future shaping. We are in an
better, together tomorrow.
era where there are many such and
the impact warrants working and
thinking together.
|1|
At KPMG, we observe, nudge, and
challenge our abilities as the pace “The Capacity to learn is a gift, the ability to learn is a
of change warrants. This document
has assembled trends and impact skil and the wil ingness tolearn is a choice”
and serves as a wakeup call for each
of us individually on our learnability, - Brian Herbert
adoption and adaptation to new
technologies. The ability to look in,
look outside and sideways and learn,
collaborate instead of compete,
take positions on specialism and
generalist skills, choose between
being rigid and flexible, mindful of
information security and privacy are
all part of the hors d'oeuvre. As an Akhilesh Tuteja,
organisation or individually we have Partner and Head
a choice on how we respond to what Technology
we see happening around us. KPMG in India
Foreword - Nasscom
Winning on cost arbitrage alone is The GCC narrative in India is more than In the earlier generations when GCCs
passé. two decades old. However, the last invested in technology (ERP, BI for
few years have been nothing short instance) they did so with reasonable
The future will be theirs, who can see
of incredible. They have relentlessly assurance that the capex would pan
it faster and get there in good speed.
pushed boundaries, created powerful out over a 10-year time frame or even
There are two incredible forces at
value, adopted the latest technologies 7. Today with disruptive technologies
interplay here – millennials joining the
and undergone radical transformation in there is no such certainty. Moreover,
workforce and exponential technologies
process. The report goes on to add: there’s an entire suite – AI, IoT, Cloud,
“swarming” into systems and
“GCCs are implementing strategic AR / VR, Analytics, 3D Printing among
processes to radically change business
leadership in supporting their global others. How do we stitch all these into
models. At the heart of everything-as-
enterprise's digital transformation a successful narrative to drive superior
a-service economy, the significance of
journeys and assisting in the adoption of value for the parent?
a learning organisation cannot be over-
enabling technologies.”
emphasized. The report lays down a solid foundation
Interestingly, the report talks about for the future as well, and it should be
The report that you are about to read
something called the “Swarm Effect”. a very useful addition to every leader’s
addresses the changing attributes that |2|
It’s the ability to drop what’s worked in knowledge repository.
the 1100-odd GCCs are adopting. The
the past (a la Marshall Goldsmith’s What
B2C world has re-defined customer Hope you enjoy reading it, as much as
Got You Here Won’t Get You There)
preferences which hasn’t spared B2B I did!
and let the avowed change proliferate
either, and the latter is just as driven in
across the organisation.
providing convenience to customers
with little or no interaction – made Inasmuch, Global Captive Centre’s
possible because of technology. will have to prepare for difficult
conversations on existential threats
Let’s linger a bit on customers,
by being aware of rapid tech shifts
particularly their loyalty which in all
that are required, which will have to
probability is a result of customisation.
be ably addressed by heightened
From a GCC standpoint, the customer is
efforts towards re-skilling. The report
their parent. The question that most are
estimates that as on FY18, 900000
tasked with is about aligning strategies
employees work for GCCs based out of
with parent, delivering world-class
India. To add, transitioning is also about Ms Debjani Ghosh,
value, adopting flexible models and
blurring lines between me-time and President
yet sustaining the obvious – being
work life, inexcusability of poor services
competitive on cost! Nasscom
and a workplace which is increasingly
becoming purpose-led.
2. See the future: Get there faster
1800s 1900s 2000s Today

Steam, water, Division of labour, The Information Age - AI, nanotech, biotech, cyber-
mechanical production electricity, mass Electronics, IT, Mass physical systems, digital
equipment production Communication, Internet labour
|3|
To understand what would change each of us plan to do on skills may

in the landscape of skills, it is be different, but one picture that is
Without deviation important to look at possible
emerging pictures of ‘Society 5.0’
emerging is that the pace of change
is overtaking the pace of learning.
from the norm, and the Intelligent Enterprise. On
one hand we have millennials
So what should any person,
enterprise or government do in
progress is not on the brink of coming into the
workforce, on the other we have
this situation? We need to actively
improve ’learnability’, ingrain
possible emerging business models and
technologies that are reimagining
mindfulness into the founding
principles of progress – ’live and
- Frank Zappa the future enterprise.
let live’, match regulations to the
We are progressing into everything pace of change, drop what worked
as a service, the redefinition of in the past, become millennial
what is work and play, hi-tech minded, get comfortable in a ‘VUCA’
health care, disruptions in financial (Volatility, Uncertainty, Complexity
sector and the list goes on. What and Ambiguity) world and so on.
Looking forward: Trends and their impact on skil s
Changing Disruption and Future of Technology

customer changes in business Work proliferation
preferences models
Empathy Recognising existing Learnability Understanding roles
business models and success criteria
Design Thinking Mindfulness and
in an agile working
Being mindful of appreciation for diversity
Flexibility environment
emerging trends |4|
Training in inclusive
Review of data and
Ability to engage in behaviour
analytical capabilities
difficult conversations
Where does one start and 'how' has

been described in parts but the final
picture is yet to emerge…
We intend putting forth some
attributes with reference to skills
that individuals, organisations
including Global Capability Centres
(GCCs) could consider building.
1140+
GCCs are now part of
These may help in identifying the Indian economy
emerging patterns that are as of FY 20181
emerging and respond in a befitting
manner.
1. Primary research conducted by NASSCOMM, 2018
3. Key trends and the impact on skills
3.1 Changing customer preferences:

It is not the The economic existence of a GCC
is built on how much value it adds
convenience in terms of logistics
and delivery mechanisms.
strongest of the by serving its global enterprise at
an effective cost. There are some
• Global enterprises find
themselves catering to the ultra
species that broad categories of change that are
occurring:
tech savvy and baby boomers
at the same time. In such a
survives, nor the • Theory of convenience and no
interaction – for certain types
scenario, they should consider
integration of technology enabled
|5|
most intelligent, of tasks,customers do not
need to understand 'How'
services with traditional services
in order to cater to all customer
but the one most they are serviced but rather
'What' is being delivered, with
groups. Banks employ this
mechanism in order to retain
responsive to convenience being the key.
Today, e-commerce retailers
existing customer base while
attracting new customers.
change. are attempting to embody the
theory of convenience. They
• Active involvement from
- Charles Darwin customers in shaping what they
ensure minimal interaction with
like the enterprise to deliver-
customers during the process
Coffee houses have innovative
of choosing their desired
mechanisms to engage with their
product, while ensuring utmost
customers in developing new
tastes by making them a part of
Impact on skills:
the creation process and thereby
giving rise to new and exciting A Global retailer is
experiences. working with startup Empathy and design thinking become
communities on critical to understand and align to the
• Redefinition of customer loyalty building innovative
and customisation to reflect the customer. This focuses on ‘Why?’ and
services to cater to propels an individual to search for
individuality of each customer. changing customer
Online music service providers the ‘What and/or how’. An essential
preferences variable to enable empathy and design
create curated play-lists for their
customers using an algorithm thinking is understanding the context
that determines the user's and types of stratified contexts or |6|
'taste profile' based on listening responses. Since majority of the GCCs

behavior. work on specific tasks and outcomes,
they need to significantly improve
If GCCs need to respond to contextual appreciation for ‘Why’ and
customer demands and intend on ‘Why Not’ in a business process.
changing strategies in alignment
with the global company, they need
to evaluate how these trends would
have an impact on cost to serve and
the level of flexibility in operating
models that it may warrant.
3.2 Changes in business models and disruption becoming the norm:
The reason why GCCs have evolved as powerful
value creators, pushing boundaries
tougher is the proliferation of
change across continents in a
it is so difficult and finding ways to drive innovation
and creating value beyond arbitrage
global organisation and the speed
of change itself. Very often since
for existing firms for their global enterprises. In we cannot quantify the qualities
particular, GCCs are implementing that enable the ‘swarm’ action, it
to capitalise strategic leadership in supporting is attributed to the core culture of
on disruptive their global enterprise's digital

transformation journeys and are
the global enterprise. This is the
DNA of the enterprise. The pace
|7|
innovations is that helping to drive adoption of enabling
technologies.
of change warrants that every
individual in the link be mindful
their processes It has always been difficult to
of emerging patterns. The impact
and the communication of what
and their business drop what worked in the past
but attempts are being made
they experience traverses at
an appropriate pace across the
model that make by global enterprises. There are
various strategic responses such
organisation. A key change and
strategic response would be to
them good at the as fostering accelerators, creating
a related sister enterprise that
ensure that the communication and
existing business operates in the new world with a

new workforce, buy out of startups,
response channels across the global
enterprise’s locations are wired
actually make them etc. It has been observed that the
well. Once the communication
is received, action needs to be
most resilient organisations adapt
bad at competing to changes in the environment at
appropriately taken.
for the disruption a slightly faster rate than peers. A

distinguishing factor is the ability to
- Clayton Christensen steer a ‘Swarm effect’ across the
organisation. What is becoming
Impact on skills:
For employees to participate effectively

the following skills become additionally
relevant for the GCC to survive:
25 per cent
of the organisations
• Recognising existing business
model and context of value delivery
to customers
|8|
accept that automation • Being mindful of emerging trends
will change every job and being alive in the community
category in the next network for diverse signals
three years2 • Ability to engage in difficult
conversations on existential threats
• Knowledge to utilise the
communication mediums built in the
GCC to relay and respond in time.
2. The Future of Jobs, 2027: Working side by side with robots, Forrester, 2017
3.3 Future of work trends:
We are called to There are some key trends that are
worthy of mention as we set the
an age where simplicity in
mundane transactions is a given
be architects of context for the future:
• Blurring lines between work
– convenience rules – no one
wants to meet or talk to anyone
the future, not its and play - For many years,
human beings had designated
as much as possible for this
category of tasks that need to
victims work and play hours and many a
‘dream’ was built on the premise
get done by internal customers
or external. These interactions
- R. Buckminster Fuller are well suited for complete
of sacrificing personal time to
|9| automation (example buying
achieve corporate goals. We
groceries, ordering specific
now are experiencing blurred
types of gifts, etc.). There is
lines at work and play – you
no patience or pardon for poor
may be sitting on a beach and
service and the loyalty switch
yet manage challenging work
Indian GCC employee is completely malleable. The
situations – accessibility and
demographic split other end of the spectrum is
internet facilitated/interrupted
Bengaluru - 40% the customised and nuanced
the designated work times
(of employee base) interaction that requires refined
and leisure. The attention on
Delhi & NCR - 15-17% skills from the service provider
economic status and work related
Pune- 15% and deep understanding of what
to achievements prevailed.
Mumbai and Chennai -11-13%3 value the client is looking for.
The millennial population may
prefer to play more and work • Purpose lead work place –
intermittently and reverse Employees and customers both
engineer their socio-economic alike are changing to community
status to suit their preference. and purpose lead delivery that
answers ’Why am I/You.?’ rather
• Convenience vs customised
than ’What am I /You doing ..?’.
interactions – We are entering
Why it actually matters is that the
Impact on skills:
working employable skilled forces. It would be sensible
population is scarce and if to attract a learning hungry
as a GCC, you want to direct population who would be Every GCC is trying to find 'the ideal
this traffic to you, then there open to external influences employee'. The following skills need
needs to be careful and ‘lead the enterprise to consideration in existing leadership,
‘real’ thought about purpose. extraordinary sustainable recruitment professionals and the
Yes, it is possible to adopt successes'. employee pool:
a strategy of training by the
GCC and hence rule-based A technology giant • Design thinking – this would
skills may be acquired and is re-evaluating promote empathy and appreciation | 10 |
the economic advantage their skills profile for nuanced customer interactions
widely boosted. The danger considering various whether internal or external
in this approach is that digital interventions • Learnability – becomes a critical
the machinery for training that are impacting success factor for the pace of
needs to be at a pace in their business change the environment dictates
keeping with the external processes on the GCC
• Mindfulness and appreciation for
diversity and training in inclusive
behaviours.
As of FY 2018, 900,000
direct employees are
working in Indian GCCs
as against the 745,000
in FY 20154
3.4 Technology proliferation:
Technology is not an Enough has been said about
how much technology is
and convenience' aspect of
environmental changes. Of
exogenous force enabling us to conduct business
differently sometimes with
course in that journey caution
is advised not to become
over which we have better economic value add.
There is some amount of
fragile. The trend is one of
integrated skills being the ask;
no control. We are not reimagining to do if we want to
understand the massive impact
• Rigid vs flexible technology
| 11 |
constrained by a binary on society and industry.
architecture –There is
a constant tension on
choice between 'accept From a GCC angle the following
aspects of technology become
how much flexibility the
Enterprise Architecture
and live with it' and relevant:
• Ability add better value
should accommodate. It was
appropriate to choose specific
'reject and live without by zeroing in on relevant
information and responding;
ERP, BI and so on and general
assumption was that it would
it'. Instead, take dramatic • The technology ecosystem
last at least for over ten years.
Therefore, the capex models
technological change can offer a distinct system
of advantages that may not
and decisions in the GCC
were around effectiveness of
as an invitation to reflect be easily replicated, thus
increasing sustainability of
portfolio spend – capex, opex
should be made to ensure
about who we are and economic advantage;
• Agile vs fragile – there
optimum benefit realisation.
The new tech is disrupting
how we see the world. is a growing need that
'techies' have propagated
some of the play within the
architecture. This therefore
- Klaus Schwab, warrants a differing approach.
on business knowledge and
The Fourth Industrial Revolution GCCs have to decide when
ability to flex development
they would be rigid and
methodologies to the 'speed
on what parameters, why
Impact on skills:
and which parameters by tech geeks. There are
they would be flexible to disgruntled employees,
enable adoption of new information mongers, These trends call for a change in
technology. Imagine hyper attacks on approach to integrating skills. The
a periphery construct brands and customers. earlier mantra was that segregate tasks
and rules of play that Hackers have become divert to a single source for efficiency.
are flexible within that sophisticated with use The picture that is emerging warrants
construct to promote of their technology so that everyone understands technology
new tech and served as large enterprises and and the end objective and impact of an
appropriate to deliver GCCs must take proactive action in a global enterprise and in the | 12 |
additional economic value. measures to assess, GCCs relative sensitivity:
We believe that the rules of evaluate and respond to • Understanding roles and success
evaluation of portfolio and threat. criteria and impact of changes in an
participants and leadership agile working environment
in decision-making on
technology interventions A global • Constant signal evaluations from
may need to be distributed networking and external sources by designated
and not centralised. telecommunications distributed resources and impact
Changing finance and ‘Work-Life-Balance’ assessment of patterns – therefore
costing models and cost of by engaging in review of data and analytical
services is critical. sophisticated capabilities
automation for • Reiterating future finance and
• Cybersecurity –
monitoring network costing skills that would enable
Cyberattacks are no
drops first level of impact assessment
longer only perpetrated
of technologies on the existing
landscape. Since the old portfolio
system needs be retired, the new
has to be taught.
GCCs are expected to be rigid and fluid at the same considering the impact of emerging technologies as
time and this calls for revisiting the skill alignment, below:
Human augmentation
15 years
Smart robots 10 years

Quantum
Virtual assistants
computing
Machine
learning 5 years
Autonomous Smart city
vehicles Augmented reality
Digital twin
| 13 | 5G
Drones Cognitive computing
Augmented Serverless PaaS
Conversational user interfaces Data Discovery
Edge computing
Virtual Connected home

reality Cognitive expert advisors
IoT platform
Smart 3D printing
dust Brain Computer
Neuromorphic Interface
Strategic Sensing
4D printing Blockchain
technologies
Market Impact
entry
Transformational
Immersive experience
Research
High
Artiﬁcial intelligence Digital platforms Moderate
Source: KPMG Emerging Technologies Research
4.
Painting the picture of future GCCs

There are some patterns
emerging on the attributes of
a successful enterprise in the Now…. Next….
future including the GCCs. Clearly Global Enterprise Global Enterprise
the customers determine the
enablers and proximity. The Services
Cloud
‘Elasticity of a GCC’, the ability designed by Automation GCC
global enterprises
to synthesise with the changing
landscape is critical to evaluate GCC Data Analytics IoT
whether they are going to play a
much larger or smaller role in the Characteristics Characteristics
enterprise. • Rigid • Flexible
• Limited Services • Adaptive Services | 14 |
This is quite the opposite of how • Process on efﬁciency • Focus on Outcomes
GCCs established themselves • Identical production of skill level and tasks • Evolved conflict management
earlier by consolidating same
or similar processes done and
ensuring rigidity in the process to
enable effective cost to serve the An Illustrative evaluation at a process level to architect a future GCC
client.
Automated Human
Rigid Fluid
Convenience Customized
Structured Unstructured
Rule based skills Integrated skills
Low cost High cost
Contact Centers Employee-On boarding

Procurement Payables Processing Data and Analytics
5. What GCCs should be doing now
We have deliberated the ‘why’ and

‘what’ that needs change in GCC.
1. Adopt the changing technology
landscape including intelligent
• Technology enables accessibility
and learning in ways that have
The ’how’ is discussed below: automation not been possible before. To get
out of this productivity paradox,
We believe since the pace of 2. Improve 'learnability' of
GCCs could use the technique
change is fast there are two levers workforce at GCCs across
of Pause, Clarify and Decide as
that may produce disproportionate all levels including senior
emphasised by Franklin Covey
positive outcomes for the GCC to management
in The 5 Choices. This technique
remain relevant.
could enable GCCs to execute
their action plan with excellence,
while staying focussed on what
| 15 | is really important in a fast-
paced tech-driven landscape.
Assess Architect Adapt

Pause Clarify Decide
Assess existing Architect and Adapt by
skill profiles reimagine the embracing new
in conjunction future GCC in technology and
with the digital conjunction with re-calibrating
dexterity global enterprise talent portfolio
landscape
Source: Adapted
from The 5 Choices
to Extraordinary
Productivity by Franklin
Covey
• Arrive at the skill profile of processes. If this is only critical company knowledge
the organisation as a whole reviewed in a contained one culture and incur an additional
preferably and if that is process approach, the result transient cost
not possible – then within may potentially be dangerous
the GCC and across the since the enterprise may lose
Current Knowledge Future Knowledge

distribution distribution
| 16 |
Integrated
Skills
Technical Organisational Functional

Knowledge Knowledge Knowledge
• Changing skill profiles need to –– Determining the learnability to respond to the changes in
be addressed by: and knowledge of the profile
company which would help
–– Assessing existing skill –– Determine a partner network
decide the changes that
profile in conjunction with that would enable the
need to be effected
the digital dexterity transition process
–– Establishing learning
processes that are enabled
| 17 |
BuiBui
ld Bui
ldBuildld BuyBuyBuy
Buy Partner
Partner
Partner
Partner Save
Save
Save
Save
$ $ $$
• Invest in career • Foster • Develop a multi- • Develop rotational
path design, relationships with faceted workplace programs to retain
learning and key universities ecosystem and develop high
development (e.g., onshore, performers and
• Source non
nearshore, future leaders
• Reskill workforce traditional
managed service)
to deliver more backgrounds • Understand critical
business-centric • Partner to build roles and single-
services capabilities that source dependency
feed into an of Institutional
environment of knowledge
high-performing
talent
It is our duty as a community of

professionals in India to call for
action and reinitiate our future for
“It was character that got us out of bed,
the economy and society. We made
a dent in the last twenty years
commitment that moved us into action, and
creating jobs post a business model
change and the next twenty years
discipline that enabled us to follow through.”
are at the horizon. Each GCC leader - Zig Ziglar
can commit and make a positive
impact in our society and maintain
our lead position in being a truly
Global Capability Centre. We need | 18 |
to be mindful that 'what got us here
will not get us there' and religiously
Welcome
drop what may have worked in
the past and revisit. A perceivable
change can only be felt if it is
backed by a movement and this is
to the
our opportunity to show the world
that India is resilient to change.
There is a fear that people would
lose jobs. We just need a correction
future you
to the statement to be – people
may lose current jobs and it is our
collective duty to ensure we enable
the ecosystem to re-imagine future
jobs and skills that would ensure
progress of the Indian economy and
society at large.
6. GCC: Skills of the future
Repurpose… Reimagine.…Recalibrate
Policy Digital Data

Compliance Strategy interpretation
and analysis
| 19 |
Strategic Tech Financial Governance Market

Thinking Func Analysis and Control Knowledge
Digital Finance Process Accounting Automation Risk

Maestro Mentor Detective Orchestrator Scientist
Digital
Dexterity
Bot Emotional Proactive Risk

Design Threat
Development Mindset Intelligence Acumen
Detection
| 20 |
Predictive
Bot Change Talent Adaptive Smart and
Compliance Catalyst Management Security Reporting Scenario
analysis
Automation Innovation Workforce Cyber Security Obsessive Customer Analytics

Artist Think Tank Shaper Captain Delighter Wizard
KPMG in India contacts: Nasscom contact:
Mritunjay Kapur Akhilesh Tuteja Nasscom
National Head Partner and Head Plot 7 to 10, Sector 126, Noida
Markets and Strategy Technology 201303, India
Head - Technology Media & Telecom T: +91 124 307 4800 T: +91 120 499 0111
T: +91 124 307 4797 E: atuteja@kpmg.com E: research@nasscom.in
E: mritunjay@kpmg.com
Kalpana B
Partner and Head
Intelligent Automation
T: +91 80 3065 4051
E: kb@kpmg.com
KPMG.com/in
nasscom.in
Follow us on:
kpmg.com/in/socialmedia
Visit our e-community at http://community.nasscom.in
The information contained herein is of a general nature and is not intended to address the
circumstances of any particular individual or entity. Although we endeavour to provide
accurate and timely information, there can be no guarantee that such information is
accurate as of the date it is received or that it will continue to be accurate in the future.
No one should act on such information without appropriate professional advice after a
thorough examination of the particular situation.
© 2018 KPMG, an Indian Registered Partnership and a member firm of the KPMG network
of independent member firms affiliated with KPMG International Cooperative (“KPMG
International”), a Swiss entity. All rights reserved.
The KPMG name and logo are registered trademarks or trademarks of KPMG
International.
Printed in India. (001_THL0418)

The Future of Me Nasscom KPMG Report

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

The Future of Me Nasscom KPMG Report

Uploaded by

Copyright:

Available Formats

The future

5 What GCCs should

1800s 1900s 2000s Today

To understand what would change each of us plan to do on skills may

Looking forward: Trends and their impact on skil s

Changing Disruption and Future of Technology

Where does one start and 'how' has

1. Primary research conducted by NASSCOMM, 2018

3.1 Changing customer preferences:

'taste profile' based on listening responses. Since majority of the GCCs

on disruptive their global enterprise's digital

existing business operates in the new world with a

for the disruption a slightly faster rate than peers. A

For employees to participate effectively

3. Primary research conducted by NASSCOMM, 2018

4. Primary research conducted by NASSCOMM, 2018

Smart robots 10 years

Virtual Connected home

Painting the picture of future GCCs

Rule based skills Integrated skills

Low cost High cost

Contact Centers Employee-On boarding

We have deliberated the ‘why’ and

Assess Architect Adapt

Current Knowledge Future Knowledge

Technical Organisational Functional

It is our duty as a community of

Policy Digital Data

Strategic Tech Financial Governance Market

Digital Finance Process Accounting Automation Risk

Bot Emotional Proactive Risk

Automation Innovation Workforce Cyber Security Obsessive Customer Analytics

Visit our e-community at http://community.nasscom.in

Printed in India. (001_THL0418)

You might also like