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While India continues to be the hotbed for GCC setups, CostaRica is increasingly our favored location for nearshore GCC build-outs. CINDE – Experts in FDI and local partners like Feuji Inc continue to be invaluable for our CXO clients and us.
HEX Advisory Group is the leading hands-on advisor in the GCC space. Action NOT Analysis-paralysis. In fact, we – it is hygiene and implicit to our expedited GCC Solution-to-Build lifecycle.
Navigating the intricate landscape of Population Health Management (PHM) pricing demands more than just numbers—it requires expertise. With over 60% of healthcare organizations already on the PHM journey and the market set for substantial growth, the stakes are high. Let us be your guide in unraveling the complexities of PHM investments.
Avoid tacos at 7-Eleven and coffee at Taco Bell. Source matters in everything you consume and that applies to Sourcing and Price Benchmarking trends too.
Don’t ask an advisor what the size of ChatGPT in sourcing deals will be in 2025 and don’t ask a researcher how best to calibrate your multi-million-dollar contracts. You are bound to be misled in either case.
There’s so much broad stroking on IT-BPO Sourcing & Pricing trends going around that I decided not to write a blog post but a MANIFESTO! 🙂
In a BOT model, service provider runs operations in initial stages with an option to transfer back to buyer later. While the operational risk lies with the provider in a BOT model, buyer should staff its employees in all the relevant management layers.
- The provider and client together implement a management oversight layer responsible for meeting deliverables and milestones for each phase.
- The intermediate management layer consists of a blend of provider and buyer employees, allowing the buyer to have easier access to the provider’s knowledge base and expertise
- Provider employees makes up the core workforce.
Virtual captives are increasingly becoming an acceptable solution as they occupy a median position in a spectrum that is occupied by third party outsourcing on one end and captives on the other. For the mid-market enterprises, who end up experiencing a ‘small-fish’ syndrome with large third-party providers and captive remains a pipedream due to lack of capital/appetite, virtual captive offers best of both worlds. It is essentially a hybrid model wherein a local provider will provide all the necessary infrastructure (managed facility, hardware, connectivity etc), talent (sourcing, recruitment & HR), compliance and support services (accounting, compliance, IT operations) while letting the client retain full control of the operations.
Some of the specific advantages this sourcing model offers
- Higher degree of control: This model allows the enterprise to have full control of the business operations while the back-office set-up and processes are managed by the local provider. The enterprise leadership can practically walk-in and focus on business without having to worry about the ‘operational’ and ‘compliance’ overheads on Day 1.
- Transparent and Flexible Pricing Model: The most common construct is a cost-plus structure wherein the provider charges a mark-up on costs i.e., Talent (typically 70-85% of the costs), Infrastructure and Support function costs. Numerous as-a-service pricing models (GCC-as-a-service, Talent-as-a-service, Compliance-as-a-service etc) are also available for enterprises who may want to a bundled price or specific services.
- Reduced time to market: Mature providers are able to provide a significant jumpstart to the timeline leveraging their well tested operations templates and readily available workforce.
- Low Capex: Unlike a captive that involves significant upfront investments in infrastructure set up, this is a fully variable ‘Pay as you grow’ model. This is extremely useful especially for mid-market enterprises who can test the concept without necessarily having to block large sums of capital.
This may be a bit of memory jog as this is not about the automation BOT that has been the top of mind recall in recent times but rather the good old, Build-Operate-Transfer (BOT) that is making a quiet but definitive comeback to the boardroom discussions. During the pandemic and post ‘The Great Resignation’, firms have and are continuing to de-risk their alternate service delivery models. As part of this, enterprises are increasingly assessing and executing BOT transactions. The drivers for them to do this are multifold e.g., deleveraging third-party outsourced portfolio, managing sensitivities around product development, building digital talent inhouse etc. While the classic BOT remains intact, its close variant, Virtual Captive, is increasingly gaining traction as this model offers a good balance between ‘Control’ and ‘Risk’. The supply side is becoming increasingly mature and arming their portfolios with innovative and agile ‘as-a-Service’ solutions.
Next time, when you are looking beyond Managed Services but do not just have the appetite for own captive, definitely worth adding this to the list of options. Lets you ‘test-drive’ offshore on a ‘Pay-as-you-grow’ model.
Know more about our GCC Lifecycle Advisory Services
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Categories
- Advisory Market Lens
- AI
- Benchmarking
- BOT
- COLA
- Contract HealthCheck
- Cost & Run Optimization
- Digital Workplace Services
- F&A
- Field Services
- GCC
- GenAI
- Governance
- Healthcare
- HEX Index
- HRO
- L&D Advisory
- Managed Services
- Network
- Outcome based Pricing
- Outsourcing
- Perspectives
- Pricing Models
- Procurement
- RFP
- Security
- Service Desk
- Service Levels
- Str[AI]ghtTalk
- WAN
As metro primes get saturated, value shifts to the periphery.
Mid-size and PE-backed firms are realizing that India’s emerging cities offer not just cost efficiency but a strategic advantage.
Source: LinkedIn
Tech isn’t just a vendor expense anymore. It’s a core muscle. Smart enterprises aren’t debating outsourced vs in-house. They’re asking what to own and where to build.
Enterprises are reshaping their IT portfolio strategies by complementing third-party contracts with Global Capability Centers (GCCs).
A strong vendor relationship should provide the flexibility to carve out GCCs on enterprise-defined terms, backed by:
- Rebadging at scale
- Right-to-hire leverage
- Modular termination options
- Knowledge transfer guardrails
Source: LinkedIn
Tier-2 cities, mid-market playmakers, and a surging R&D presence… The GCC map is being redrawn in real-time.
Discover the patterns that matter inside the HEX GCC Database because foresight is strategy.
Let’s explore the possibilities together: https://hexadvisory.com/contact/#mail
Source: LinkedIn
Which of these moves had you already spotted?
There are more, this list is just the beginning.
Source: LinkedIn
The smartest enterprises are now productizing their capabilities and scaling domain expertise as a service, turning GCCs into Growth Drivers, not just Cost Centers.
Source: LinkedIn
The Joint Venture GCC model: because CXOs don’t have time for trial-and-error. What if your next GCC came with control, speed, and certainty baked in?
Source: LinkedIn
GCCs are heating up and Service Integration providers are switching the tempo.
No-more change the face paint to BOT and perpetuate play. Instead SI C-suite are investing in dedicated GCC leadership, specialized M&As, account-based GCC farming, and augmentative solutions.
Source: LinkedIn
Is your “independent” advisor a pay-to-play conduit? – siphoning money from hopeful vendors while working on your enterprise dime?
It’s necessary to check for hidden strings when you choose an advisor.
Source: LinkedIn
This breakdown of GCC providers helps you assess who truly delivers across key dimensions like setup, strategy, and operations.
Are you evaluating your GCC provider with the right lens? Let’s discuss.
Let’s talk: https://hexadvisory.com/contact/#mail