Hexaware enabled a Fortune 500 company to rapidly scale digital innovation and reduce IT costs by 40% through a no-risk, build-operate-transfer (BOT) global capability center (GCC), overcoming talent shortages and accelerating business growth.
Client
Fortune 500 health and hygiene solutions company
The client, a Fortune 500 company, is a global provider of water, hygiene, and infection-prevention solutions. It serves customers across 170 countries in various industries, such as animal and plant production, food processing and services, hospitality, healthcare, industrial, life sciences, and oil and gas.
Challenge
Overcoming IT talent scarcity and budget constraints
While the client had solid innovation strategies in place, the lack of available talent to execute on big ideas seriously compromised their success:
- With an extremely competitive market for STEM talent, finding qualified IT resources was expensive and often impossible.
- US-based contractors were even more costly and often resulted in intellectual property risk.
- Typical budget constraints and traditional funding models constrained execution, innovation, agility, and progress.
Solution
Offshore development center setup and managed GCC services
After assessing their current IT capabilities, talent strategies, and business goals, Hexaware provided a framework to transition the company from its insourcing strategy to a comprehensive global talent strategy that would cater to its future development needs. At the heart of the solution was an offshore development center setup in Bangalore, India. Our managed GCC services for this center spanned Salesforce, custom mobile development, and ERP services. In addition, we also managed the following all at no upfront cost to the client:
- Creation of a legal Indian entity
- Acquisition of required leases
- Design and buildout of their office and social spaces
- Hiring of key office, HR, and managing director roles
Our framework also enabled the US-based director—a non-billable, value-added role—to drive a global development mindset among the US and India resources across Agile, DevOps, and traditional methodologies. The approach enabled the client to quickly recognize opportunities and risks that drive effective project management, predictable outcomes, and quality that exceeds US standards.
Benefits
Accelerated digital transformation and reduced costs
In just 12 months, the client’s digital center was able to grow ‘right-sized’ teams in over 12 capability areas, including mobile, machine learning, robotic process automation (RPA), and Salesforce. The client reclaimed control over their global development work, and as they moved through a three-year operational plan, their global capability center (GCC) team proved highly productive and cost-effective in leveraging synchronized resources between India and the US. Hexaware’s model allowed the client to transfer their global talent asset in the third year without a buyout fee.
Key Wins for the Client:
- 40% savings in operational costs while delivering a 1:1 (India:US) productivity ratio
- Over $40 million in annual savings; no start-up costs or transfer fees
- Customer service chatbot developed and implemented to enhance the service model
- 400+ employees successfully transitioned during the 3-year engagement; 154 new engineers in 6 months across 12 core competencies
- Digital innovation paved the way for business opportunities with international clients
With no upfront capital requirements, Hexaware’s solution is perfect for companies wanting a no-risk, fast-track path to execute big ideas through highly coordinated, cost-effective global IT resources.
Summary
IT talent scarcity solutions via a global capability center model
A Fortune 500 company, providing water, hygiene, and infection-prevention solutions, partnered with Hexaware to implement IT talent scarcity solutions and address budget constraints that were limiting its digital transformation. Hexaware’s innovative, no-risk global capability center (GCC) solution provided immediate access to high-quality, cost-effective global IT resources, supporting a wide range of digital initiatives from Salesforce and mobile development to machine learning and RPA.
Within just 12 months, the client achieved substantial operational cost savings, built “right-sized” teams across 12 key competencies, and enhanced their global agility without any upfront capital investment. The managed GCC model not only delivered measurable business results, including over $40 million in annual savings and improved productivity, but also empowered the client to retain full control and ownership of their global talent assets—setting the stage for long-term innovation and growth.
Ready to accelerate your digital transformation and reduce IT operational costs? Visit our GCC page and explore models that can help your business scale innovation without risk.
Disclaimer: This content was originally posted on/has been sourced from SMC Squared (now a part of Hexaware).
