Traditionally, companies that have been seeking to reduce costs have followed an offshoring strategy to take advantage of educated, skilled, low-cost labor in countries such as India. They have either outsourced or set up their own Global Capability Centers (GCCs), often requiring large scale, with several hundred full-time equivalents (FTEs) to be cost-effective. However, with the rapid drive to automation, and especially artificial intelligence (AI), the number of people required in place is being dramatically reduced, making GCCs in low-cost jurisdictions feasible at scales as low as a few tens of employees. This movement is a major disruptor to the offshoring industry but provides opportunities for smaller and mid-size entities needing to drive efficiency and reduce costs.

This paper explores the different ways in which small and mid-size entities can embrace such new opportunities in an innovative and cost-effective manner, including examining and mitigating delivery risk.
 

How A&M Can Help

Alvarez & Marsal works with its clients to help design and implement such operating models, making them at the leading edge, with continuous improvement and effective management. This is done through a series of structured interviews and workshops, whereby the client’s situation and objectives are discussed and shaped, potential operating model assumptions and constructs are hypothesized and evaluated to determine which construct might be most suitable. The benefits and risks of the option are rigorously addressed and documented, including both quantitative and qualitative factors and risk mitigation strategies, together with creating detailed implementation plans.