GCC Success, Measured Right – Inductus' Strategic Approach to Performance and Gr

1. 20 25 A Guide to Measure Your GLOBAL CAPABILITY CENTER 3.0 Success: Pillars, Parameters, and Strategic Action  w w w . i n d u c t u s g c c . c o m

2. Table of CONTENTS Executive Summary 03 The Evolving Mandate of Global Capability Centers (GCCs) 04 Primary Pillars of GCC Efficiency and Success 08 Key Performance Indicators (KPIs) and Measurement Parameters 12 Frameworks and Methodologies for Comprehensive Measurement 21 Overcoming Common Challenges in GCC Performance Measurement 25 Translating Insights into Actionable Strategies 28 Conclusion: The Future-Ready GCC as a Strategic Asset 31

3. PAGE 03 Executive Summary Global Capability Centers (GCCs) have undergone a profound transformation, evolving from mere cost-arbitrage centers into indispensable strategic assets for multinational corporations. This fundamental shift in their mandate necessitates a correspondingly sophisticated, holistic measurement framework that extends far beyond traditional cost-saving metrics to capture their comprehensive value contribution. Modern GCCs are now pivotal drivers of innovation, digital transformation, and global agility, making their effective evaluation critical for sustained enterprise success. In today's hyper-competitive and dynamic global landscape, precise performance measurement is not merely an administrative task; it is a strategic imperative. It is crucial for demonstrating the tangible Return on Investment (ROI) of GCCs, ensuring their continuous alignment with overarching corporate strategy, and optimizing their performance to sustain competitive advantage. Without a robust measurement approach, organizations risk misjudging the true impact of their GCC investments and failing to unlock their full potential. This guide introduces a multi-dimensional measurement framework designed to provide a balanced and comprehensive view of GCC 3.0 performance. This framework is structured around eight critical pillars: Financial Performance & Value Realization, Operational Excellence & Agility, Talent & Human Capital Development, Innovation & Digital Transformation Impact, Strategic Alignment & Governance, Customer & Stakeholder Satisfaction, Risk Management & Compliance, and Environmental, Social, and Governance (ESG) Contribution. By integrating these diverse perspectives, organizations can gain a truly holistic understanding of their GCC's efficiency and success. A paramount takeaway from this analysis is the strategic shift required from a purely cost- centric evaluation to a value-centric paradigm. This acknowledges that the GCC's primary contribution is increasingly tied to innovation, strategic enablement, and long-term growth rather than just Furthermore, the critical importance of a data- driven decision-making culture is underscored, where insights derived from robust Key Performance Indicators (KPIs) are continuously leveraged to inform strategic adjustments and drive cycles of continuous improvement. Ultimately, the indispensable role of strong, visionary leadership and unwavering strategic alignment between the GCC and its parent organization is vital in maximizing the GCC's overall impact and ensuring its enduring success. expense reduction.

4. PAGE 04 The Evolving Mandate of Global Capability Centers (GCCs)

5. PAGE 05 From Cost Arbitrage to Strategic Value Drivers: A Transformational Journey The journey of Global Capability Centers has been one of significant transformation, moving from rudimentary operational units to sophisticated strategic powerhouses. Initially, GCCs were predominantly established as cost- saving mechanisms, primarily leveraging labor arbitrage by locating operations in regions with lower operational expenses. Their early mandate was largely confined to supporting back-office functions and basic IT support, with a singular focus on reducing operational expenditure while maintaining service quality. This phase was characterized by a transactional view of the GCC's role within the global enterprise. As the GCC model matured and consistently demonstrated reliability and efficiency, organizations began to expand the scope of services delivered. This evolution involved taking on more complex and higher-value tasks, such as specialized research and development (R&D), advanced data analytics, and sophisticated IT functions. Companies increasingly recognized the latent potential for GCCs to contribute significantly beyond mere cost savings, evolving into more integral components of the global enterprise's operational fabric. In its current state, the modern GCC has fully evolved into a strategic powerhouse. These centers are no longer auxiliary support units but are at the forefront of technological advancements, actively driving digital transformation, fostering a culture of innovation, and building specialized capabilities in cutting-edge domains such as Artificial Intelligence (AI), Machine Learning (ML), and cybersecurity. They are now foundational to an organization's global agility and a critical source of long-term competitive advantage. This shift underscores a fundamental change in their role, moving from a transactional focus to one of strategic partnership and value creation. The Modern GCC 3.0: Catalysts for Innovation, Digital Transformation, and Global Agility Modern GCCs strategically leverage diverse global talent pools and cutting-edge technologies, including AI, ML, and cloud computing, to significantly enhance organizational capabilities and drive business transformation. This access to specialized expertise in tech-savvy regions allows organizations to stay ahead of industry trends and continuously innovate. A key characteristic of contemporary GCCs is their inherent flexibility and scalability, providing the ability to rapidly expand or adapt operations in response to dynamic business needs and changing market conditions. This global network of GCCs significantly enhances enterprise agility, allowing senior leadership to concentrate on core strategic initiatives by offloading routine tasks to these centers. GCCs are increasingly instrumental in driving research and development initiatives, fostering new product development, and accelerating the adoption and implementation of emerging digital technologies, thereby strengthening the parent company's competitive edge. Their strategic locations enable organizations to gain deep local market understandings, comprehend customer preferences, and adapt products and services accordingly, leading to improved customer service and a more personalized customer experience. Furthermore, GCCs play a crucial role in business standardization by centralizing and harmonizing processes across different entities, which ensures consistency, improves operational efficiency, and enhances compliance and governance across the organization.

6. PAGE 06 Defining Success in the Contemporary GCC 3.0 Landscape

7. PAGE 07 In this evolved landscape, GCC success is no longer solely, or even primarily, measured by cost savings. Instead, it is defined by the GCC's ability to drive tangible, quantifiable business value across multiple dimensions, including direct contributions to revenue growth, increased market share, enhanced productivity, and effective risk reduction. This broader definition reflects the GCC's elevated role as a strategic asset. Success also encompasses significant contributions to the parent organization's digital transformation initiatives, the development of proprietary intellectual property, and fostering seamless cross-functional collaboration across the global enterprise. Organizations that view GCCs as strategic assets rather than mere cost centers consistently achieve greater long-term value from their investments. The persistent reliance on cost arbitrage as the primary metric has been identified as a "Value Gap," failing to capture the full breadth of modern GCC contributions and risking immense untapped potential. The continued reliance on cost-centric metrics creates a significant strategic challenge. If GCCs are indeed evolving into sophisticated innovation hubs and strategic assets, then continuing to measure their performance predominantly through a cost-efficiency lens leads to a fundamental misrepresentation of their true contribution. This implies that organizations may be making suboptimal strategic decisions regarding their GCC investments, potentially under-investing in areas where GCCs could create substantial value, such as advanced R&D or specialized talent development. This is because current measurement systems fail to quantify these non- cost benefits. This ultimately translates into a competitive disadvantage for companies that fail to adapt their measurement strategies to align with the GCC's evolved, strategic purpose. Furthermore, GCCs serve as multifaceted risk mitigation mechanisms that extend beyond traditional geographic diversification. While spreading operations across multiple regions reduces risks associated with geopolitical instability, natural disasters, or other localized disruptions, thereby preserving business continuity and resilience, GCCs also address talent risk by providing access to diverse global talent pools and specialized skills. They mitigate innovation risk by fostering R&D and rapid digital adoption, and they reduce compliance and data security risk through standardization, centralized teams, and robust infrastructure. This expanded understanding positions the GCC not merely as a cost-saving or talent-accessing entity, but as a critical component of enterprise-wide resilience and business continuity strategies. This broader value proposition should significantly influence investment decisions and strategic planning, justifying higher investments and a more strategic integration of GCCs into core business functions.

8. PAGE 08 Primary Pillars of GCC 3.0 Efficiency and Success Measuring the efficiency and success of a Global Capability Center requires a multi- dimensional approach traditional financial metrics. The following eight pillars represent a comprehensive framework for evaluating a GCC's holistic contribution to the parent organization. that transcends

9. PAGE 09 Financial Performance & Value Realization: Quantifying Economic Impact This pillar moves beyond a simplistic focus on cost savings to encompass the comprehensive financial contribution of the GCC to the parent organization. It includes direct cost reductions achieved through labor arbitrage and operational efficiencies, but critically, also assesses the GCC's impact on top- line revenue growth, overall profitability, and the broader financial health of the enterprise. This holistic view ensures that the GCC is evaluated not just as a cost center, but as a strategic contributor to the organization's economic vitality. By setting up GCCs in strategic locations, companies can significantly lower their operational costs through reduced office and infrastructure expenses, decreased labor costs, and lowered operational overhead via process automation. The "Cost Efficiency with Value Realization" KPI is particularly important, blending cost savings with qualitative value delivered to ascertain if the organization is "getting more for less". Operational Excellence & Agility: Driving Efficiency and Responsiveness This pillar rigorously assesses the efficiency, quality, and adaptability of the processes and workflows executed within the GCC. It measures how effectively the GCC streamlines operations, minimizes errors, and demonstrates responsiveness to dynamic business demands and market shifts. The focus is on continuous improvement and the ability to deliver high-quality services consistently. GCCs optimize resources and drive efficiency, saving costs without impacting delivery. They are instrumental in business standardization by centralizing and harmonizing processes across different entities, ensuring consistency and efficiency. The "Operational Agility Index" evaluates the GCC's ability to respond quickly and effectively to shifting business priorities, including time to pivot resources, onboarding agility for new projects, and speed of execution. Key metrics in this area include process efficiency, productivity, quality, defect reduction, and waste reduction. Talent & Human Capital Development: Building a Future-Ready Workforce This pillar evaluates the GCC's strategic capability to attract, develop, and retain a high-caliber, specialized global talent pool, particularly in high-demand and emerging skill areas such as AI, cybersecurity, and data science. It also measures the overall health of the talent ecosystem, including employee engagement, opportunities for career growth, and the effectiveness of leadership development programs. GCCs connect organizations to a global pool of top-tier talent, equipped with the latest technology and training needed to stay ahead of industry trends. Successful GCCs position themselves as career accelerators, attracting talent with growth opportunities and international exposure. The "Talent Skill Index" assesses the alignment between existing employee skills and evolving strategic needs, including training in future-critical areas and reskilling success rates. Furthermore, "Employee Management" KPIs assess the GCC's performance in creating a compelling and supportive work environment, encompassing employee Net Promoter Score (eNPS), retention of top performers, career mobility, and burnout risk indicators.

10. PAGE 10 Innovation & Digital Transformation Impact: Fueling Enterprise Growth This pillar quantifies the GCC's direct contribution to technological advancement, the development of new products and services, and the overall digital maturity of the parent organization. It measures the output of R&D efforts, the speed of digital adoption, and the impact of transformative technologies like AI and automation on business outcomes. GCCs are inherently designed around the pillars of innovation and creativity, fostering a culture where employees are encouraged to explore novel solutions. The "Innovation Contribution" KPI measures the intellectual and creative capital generated, including ideas, patents, prototypes, process innovations, and digital products launched. The "Digital Maturity Index" tracks the GCC's progression in adopting and leveraging digital technologies across its operations. The "Automation Impact" KPI quantifies the benefits of automation, such as processes automated, manual hours saved, error rate reduction, and cost efficiencies. AI now drives GCC operations, increasing efficiency and enabling more complex work offshore. Strategic Alignment & Governance: Ensuring Cohesion and Oversight This pillar assesses the degree to which the GCC's objectives, operational activities, and strategic initiatives are seamlessly integrated and aligned with the parent company's overarching strategic goals. It evaluates the effectiveness of governance structures, decision-making protocols, and risk controls in ensuring accountability, transparency, and consistent performance across the global enterprise. A high-impact GCC is a seamless extension of the enterprise's strategic priorities, requiring CXOs to align the GCC's charter with long-term business goals. Clear governance frameworks and well-defined operating models are critical for accountability, transparency, and performance consistency. Establishing governance and compliance mechanisms, including clear reporting lines, performance metrics, and audit-ready documentation, ensures transparency and accountability. Aligning GCC goals with business priorities through workshops, strategic frameworks, and performance metrics is crucial for success. Customer & Stakeholder Satisfaction: Delivering Exceptional Service This pillar measures the satisfaction levels of both internal business units (regarded as key stakeholders) and, where applicable, external customers who receive services or support from the GCC. It provides a direct gauge of the quality, responsiveness, and overall effectiveness of the services delivered, impacting internal adoption and external reputation. The "Customer Satisfaction (Internal & External)" KPI measures how effectively the GCC serves its stakeholders, utilizing tools such as satisfaction surveys, CSAT, Service Level Agreement (SLA) adherence, issue resolution time, and Net Promoter Scores (NPS). GCCs provide efficient, scalable support structures to deliver high-quality, responsive service, often including 24/7 support and omnichannel communication. Metrics like First Contact Resolution (FCR) Rate are significant as high FCR rates improve customer satisfaction and reduce workload. Risk Management & Compliance: Building Resilience and Trust This pillar assesses the GCC's capability to proactively identify, effectively mitigate, and diligently manage a diverse range of risks, including operational disruptions, geopolitical instabilities, talent-related vulnerabilities, and critically, regulatory and data security risks. It ensures strict adherence to both local and international laws, industry standards, and internal policies, thereby building organizational resilience and trust. Spreading operations across multiple regions reduces risks associated with geopolitical instability, natural disasters, or other localized disruptions, preserving business continuity. GCCs help global businesses navigate increasing regulatory demands and proactively mitigate risks by establishing centralized compliance teams, strengthening fraud detection through AI-driven security monitoring, and ensuring standardized processes. Data security and privacy concerns are significant, and GCCs handling sensitive data face substantial compliance risks if security is not prioritized. Cybersecurity, compliance, and data sovereignty must be embedded into the foundational infrastructure from day one.

11. PAGE 11 Environmental, Social, and Governance (ESG) Contribution: The Emerging Dimension of Value This increasingly vital pillar measures the GCC's adherence to and proactive contribution towards broader sustainability, social responsibility, and ethical governance practices. It reflects the organization's commitment to being a responsible global citizen, which in turn enhances employer branding, attracts and retains talent, mitigates reputational risk, and contributes to long-term enterprise value. Sustainable workplaces aligned with ESG commitments are a priority, including green building certifications, energy efficiency improvements, and employee transportation solutions. ESG is recognized as a success factor for GCCs. The "ESG Contribution" KPI includes metrics such as energy consumption, paperless operations, workplace diversity and inclusion statistics, community outreach, ethical sourcing, and carbon footprint. A GCC championing ESG practices signals that it is a responsible, modern, and future-focused partner. The profound interconnectedness of these pillars means that optimizing one area can initiate a "virtuous cycle" that cascades positive impacts across others. For instance, a strategic investment in advanced talent development (Talent) can directly lead to increased innovation output (Innovation), which in turn drives significant operational efficiencies (Operational) and ultimately contributes to improved financial performance and revenue growth (Financial). Conversely, a weakness in one area, such as poor governance leading to compliance violations, can create ripple effects, undermining performance across multiple pillars, leading to financial penalties, reputational damage, and talent attrition. The holistic measurement framework is therefore not merely a checklist of independent metrics but a sophisticated model for understanding, leveraging, and optimizing these synergistic relationships to maximize overall GCC value. Furthermore, a critical strategic reorientation is evident within each pillar: the shift from purely "cost-saving" to "value-creating" metrics. While cost efficiency remains fundamental, the emphasis is now on "Value Realization" and "Impact Over Efficiency". For example, "Cost Efficiency with Value Realization" blends qualitative value, addressing whether the organization is "getting more for less". This signifies that it is no longer just about reducing expenses, but about optimizing costs to strategically free up capital for high- impact initiatives. Similarly, in the Talent pillar, the focus shifts from mere headcount to "talent density" and the development of "leadership pipelines". This paradigm shift fundamentally redefines what "efficiency" and "success" truly mean for a GCC, moving from a transactional, back-office perspective to a transformative, strategic partnership. cost savings with

12. PAGE 12 Key Performance Indicators (KPIs) and Measurement Parameters To effectively measure the efficiency and success of a Global Capability Center, a comprehensive set of Key Performance Indicators (KPIs) must be established across the identified pillars. These parameters provide quantifiable insights into performance, enabling data-driven decision- making and continuous improvement.

13. PAGE 13 Financial Metrics Financial metrics quantify the economic impact and value realization of the GCC. They move beyond simple cost reduction to encompass broader financial contributions. Essential Financial KPIs for GCCs KPI Name Definition Calculation Method Strategic Significance Absolute Savings = (Previous Cost - Current Cost); % Reduction = ((Previous Cost - Current Cost) / Previous Cost) * 100 Demonstrates the direct financial value generated by the GCC, enabling the reallocation of capital to strategic initiatives and fostering long-term profitability. The direct financial benefits from reduced operational expenses due to GCC operations. Cost Savings (Absolute & % Reduction) Provides a comprehensive view of the GCC's profitability and economic viability, justifying initial and ongoing investments. Return on Investment (ROI) The overall financial return generated from the cumulative investment in the GCC. ROI = ((GCC Benefits - GCC Costs) / GCC Costs) * 100 The timeframe within which the GCC's accumulated cost savings and value contributions fully offset its initial setup and operational investments. Indicates the speed at which the GCC becomes financially self- sustaining and starts delivering net positive value. Measured in months or quarters from GCC inception Break-even Point Quantified improvements in time-to-market, cross- sell rates, new product revenue, or market share attributable to GCC efforts The direct or indirect impact of GCC initiatives on the parent organization's top-line revenue. Elevates the GCC from a cost center to a business partner, demonstrating its role in driving top-line growth and market expansion. Revenue Growth Contribution Reflects the efficiency of the GCC in delivering services or products, allowing for benchmarking and optimization. The average cost incurred to produce a single unit of service or output from the GCC. Cost per Unit of Output Total GCC Operating Cost / Total Units of Output The percentage of revenue remaining after deducting operating expenses, indicating overall profitability and efficiency Shows the GCC's contribution to the company's overall financial health and its ability to manage costs effectively relative to its output. Operating Margin (Operating Income / Revenue) * 100 A measure of workforce productivity, indicating the revenue generated per employee within the GCC. Total Revenue Generated by GCC / Total Number of GCC Employees Reflects the efficiency of the human capital in generating economic value, highlighting productivity gains. Revenue per Employee

14. PAGE 14 Operational Metrics Operational metrics assess the efficiency, quality, and responsiveness of processes within the GCC. Core Operational KPIs for GCCs KPI Name Concise Definition Strategic Significance Directly reflects efficiency and speed of execution, crucial for meeting business demands and improving responsiveness. The total time required to complete a specific process from initiation to completion. Process Cycle Time The percentage of errors, defects, or rework required in the output of processes or services. A direct indicator of quality and accuracy, minimizing errors reduces costs and improves stakeholder satisfaction. Error Rates / Defect Rate Measures the volume and capacity of operations, indicating the GCC's ability to handle workload and scale efficiently. The amount of work, units, or transactions completed within a given timeframe. Throughput The percentage of products or services meeting all quality standards on the first attempt without rework. Signifies high process quality and efficiency, reducing waste and improving overall productivity. First Pass Yield (FPY) A composite metric tracking the benefits of automation, including processes automated, manual hours saved, error rate reduction, and cost efficiencies. Quantifies the value derived from digital transformation efforts, highlighting efficiency gains and resource optimization. Automation Impact Service Level Agreement (SLA) Compliance The percentage of agreed-upon service levels that the GCC successfully meets within specified timeframes. Crucial for maintaining stakeholder trust and satisfaction by ensuring reliability and adherence to commitments. Incident Resolution Time / Mean Time to Repair (MTTR) Reflects responsiveness and efficiency in problem-solving, minimizing disruption and improving service continuity. The average time taken to resolve an incident or restore a system/service after a failure. The percentage of customer or stakeholder inquiries/issues fully resolved during the initial interaction. Signifies high efficiency and directly impacts customer satisfaction by reducing effort and improving experience. First Contact Resolution (FCR) Rate

15. PAGE 15 Talent & People Metrics These metrics evaluate the GCC's ability to attract, develop, and retain human capital, fostering a high- performance culture. Key Talent & People KPIs for GCCs KPI Name Concise Definition Strategic Significance High attrition can indicate dissatisfaction, increased recruitment costs, and loss of institutional knowledge. The percentage of employees who leave the GCC within a 12-month period. Annual Attrition Rate Reflects recruitment efficiency and the ability to quickly onboard talent to meet business demands. The average duration from job requisition approval to a new employee's start date. Time to Hire Indicates investment in upskilling and reskilling the workforce, crucial for adapting to evolving skill needs. Training Hours per Employee The average number of hours dedicated to employee training and development annually. Measures the alignment between existing employee skills and the enterprise's evolving strategic needs, particularly in emerging technologies. Talent Skill Index / % Workforce Trained in Future-Critical Areas Ensures the availability of specialized skills (e.g., AI/ML, cybersecurity) vital for innovation and competitive advantage. Employee Engagement (e.g., eNPS, survey scores) Engaged employees are more productive, innovative, and loyal, directly impacting operational excellence and talent retention. Measures employee satisfaction, motivation, and commitment to the organization. Essential for preserving institutional knowledge, leadership pipelines, and maintaining core capabilities. Retention of Top Performers The percentage of high-performing or critical talent retained over a specific period. Reflects opportunities for internal growth and progression, enhancing employee satisfaction and long-term retention. The rate at which employees move into new roles or advance within the organization. Career Mobility Leadership Development Outcomes The effectiveness of programs designed to build and strengthen leadership capabilities within the GCC. Ensures a robust pipeline of skilled leaders, critical for strategic direction and fostering an ownership culture.

16. PAGE 16 Innovation & Value Creation Metrics These metrics quantify the GCC's contribution to technological advancement, new product/service development, and overall digital maturity. Critical Innovation & Value Creation KPIs for GCCs KPI Name Concise Definition Strategic Significance Elevates the GCC's role by demonstrating tangible impact on time-to-market, revenue growth, productivity, risk reduction, customer satisfaction, and market share. Quantified improvements in key business outcomes directly attributable to GCC initiatives. Business Value Generated Positions the GCC as a vital engine of future growth and competitive differentiation, showcasing its role in driving enterprise-level innovation. Innovation Contribution Measures the intellectual and creative capital produced by the GCC. Assesses the GCC's progression in adopting and effectively leveraging digital technologies across its operations. Indicates the GCC's readiness to embrace new technologies and its capacity to drive digital transformation for the parent organization. Digital Maturity Index The speed at which ideas move from conception to implementation within the GCC. Crucial for agile organizations, demonstrating the ability to rapidly test, deploy, and scale new solutions. Innovation Velocity

17. PAGE 17 Strategic Alignment & Governance Metrics These metrics assess how well the GCC's objectives and operations align with the parent company's overall strategic goals, and the effectiveness of its oversight structures. Strategic Alignment & Governance KPIs for GCCs KPI Name Concise Definition Strategic Significance A quantitative measure of how well the GCC's objectives and activities align with the overall corporate strategy Ensures the GCC operates cohesively with the parent organization, maximizing its contribution to enterprise-wide goals. Strategic Goal Alignment Score The number or percentage of regulatory, legal, or internal policy breaches within the GCC. Directly indicates adherence to legal and ethical standards, minimizing legal and reputational risks. Compliance Violation Rate The quantity and criticality of issues identified during internal or external audits of GCC operations. Reflects the effectiveness of internal controls and risk management frameworks, ensuring operational integrity and transparency. Audit Findings (Number & Severity) Demonstrates the GCC's proactive approach to risk management, building resilience and protecting organizational assets. Risk Mitigation Effectiveness The success rate of implemented controls and strategies in mitigating identified risks. An assessment of the performance and impact of the GCC's governing body or steering committee. Ensures robust oversight, accountability, and effective decision-making, which are crucial for the GCC's strategic direction. Governance Board Effectiveness Score

18. PAGE 18 Customer & Stakeholder Satisfaction Metrics These metrics gauge the satisfaction levels of both internal business units and external customers served by the GCC. Customer & Stakeholder Satisfaction KPIs for GCCs KPI Name Concise Definition Strategic Significance A direct measure of customer satisfaction with the services provided by the GCC, typically collected via surveys. Crucial for maintaining strong relationships, ensuring service quality, and contributing to overall brand reputation and loyalty. Customer Satisfaction (CSAT) Score Measures the likelihood of internal stakeholders or external customers to recommend the GCC's services to others. A strong indicator of loyalty and advocacy, reflecting the overall positive perception and value derived from the GCC. Net Promoter Score (NPS) Essential for ensuring the GCC effectively serves its internal clients, fostering collaboration and continued adoption of its services. Feedback from internal business units on the quality, responsiveness, and value of services received from the GCC. Internal Stakeholder Satisfaction (Reiteration from Operational Metrics) The percentage of agreed-upon service levels that the GCC successfully meets within specified timeframes. Service Level Agreement (SLA) Compliance Directly impacts customer expectations and trust, ensuring service commitments are honored. (Reiteration from Operational Metrics) The percentage of inquiries or issues resolved during the initial interaction with the service desk. Directly impacts customer experience by reducing effort and improving efficiency, leading to higher satisfaction. First Contact Resolution (FCR) Rate

19. PAGE 19 ESG Metrics These emerging metrics measure the GCC's contribution towards environmental sustainability, social responsibility, and ethical governance. Emerging ESG KPIs for GCCs KPI Name Concise Definition Strategic Significance Energy Consumption (Absolute & % Reduction) Demonstrates commitment to environmental sustainability, reduces operational costs, and aligns with corporate green initiatives. Total energy usage or reduction targets within the GCC's facilities and operations. Adherence to recognized sustainable infrastructure and building standards (e.g., LEED certification). Showcases a commitment to environmentally responsible infrastructure, attracting talent and aligning with global sustainability goals. Carbon Footprint Essential for ensuring the GCC effectively serves its internal clients, fostering collaboration and continued adoption of its services. Feedback from internal business units on the quality, responsiveness, and value of services received from the GCC. Green Building Certifications Metrics on gender, ethnicity, and other diversity dimensions, along with inclusion program participation. Enhances employer branding, attracts diverse talent, fosters a richer work environment, and contributes to social equity. Workplace Diversity & Inclusion Statistics Quantifiable benefits or engagement from the GCC's social responsibility programs in local communities. Builds positive community relations, enhances corporate reputation, and reflects social responsibility Community Outreach Impact Ensures supply chain integrity, mitigates reputational risk, and aligns with ethical business conduct. Adherence to ethical and sustainable practices in the procurement of goods and services for the GCC. Ethical Sourcing

20. PAGE 20 The design of KPIs should be backward-engineered from the desired actions or strategic adjustments. If a KPI does not clearly indicate a course correction or a success to replicate, its value is diminished. This calls for strong analytical capabilities within the GCC and the parent organization, enabling them to convert raw data into strategic intelligence. It also highlights the need for a culture that supports data-driven experimentation and rapid iteration. GCCs are not just service delivery centers; they often serve as "living laboratories" where new technologies, processes, and talent strategies are piloted and refined before being scaled across the broader enterprise. Measuring their success therefore involves not just their direct output, but their contribution to the parent company's learning and transformational capacity. This elevates the GCC's role to a strategic R&D and innovation engine for the entire organization, influencing global market expansion and product differentiation.

21. PAGE 21 Frameworks and Methodologies for Comprehensive Measurement To achieve an elite level of GCC performance measurement, organizations must leverage a combination of established frameworks and cutting-edge methodologies. The integrated application of these approaches provides a truly holistic and dynamic view of GCC performance.

22. PAGE 22 The Balanced Scorecard Approach: A Holistic View of Performance The Balanced Scorecard (BSC), developed by Robert Kaplan and David P. Norton, provides a robust strategic framework that integrates financial and non-financial performance measures across four foundational perspectives: Financial, Customer, Internal Process, and Learning & Growth. Its application to GCCs offers a balanced, big-picture view of success, moving beyond short-term financial metrics to predict future performance. The BSC aligns seamlessly with modern GCC objectives: Financial Perspective: This assesses the GCC's financial health and contribution, including ROI, cost savings, and revenue impact. It ensures the GCC maintains financial sustainability and contributes to the parent company's economic goals. Customer Perspective: This evaluates service delivery from the viewpoint of internal stakeholders and, where applicable, external customers. Metrics such as CSAT, NPS, and SLA compliance are crucial here, highlighting the need to align GCC activities with user expectations. Internal Process Perspective: This measures the efficiency and effectiveness of internal operations within the GCC. KPIs like cycle time, error rates, and automation impact are key, identifying opportunities for process improvements that enhance value delivery. Learning & Growth (Organizational Capacity) Perspective: This focuses on human capital, innovation, and organizational capabilities. It includes metrics like employee engagement, training hours, and innovation contribution, recognizing that a skilled and motivated workforce is critical for long-term success. The BSC facilitates clear communication of the organization's strategy, helps manage employee performance by cascading goals, and guides resource allocation by linking budget to strategy. Benchmarking Against Industry Standards: Gaining Competitive Insights Benchmarking involves comparing GCC performance against industry peers and leaders to identify performance gaps, best practices, and areas for improvement. This methodology provides a critical external reference point for measuring progress and validating performance. Benchmarking data typically covers various dimensions: Cost: Including salaries, real estate, and technology expenses. Talent: Such as headcount, attrition rates, gender ratios, and employee experience distribution. Operations: Including process counts and subprocesses handled. Growth: Measured by year-over-year headcount growth, significance ratio, and time to scale. Quality: Assessed through SLA adherence and user experience Benchmarking provides a reference point for measuring progress, justifies investments, optimizes resource allocation, and helps align operations with global best practices. It allows organizations to understand where their costs and performance stand today, establish goals to resolve opportunities, and track progress on achieving optimization.

23. PAGE 23 Leveraging ITIL & COBIT: Robust IT Service Management and Governance (for IT-focused GCCs) For GCCs with significant IT operations, ITIL (Information Technology Infrastructure Library) and COBIT (Control Objectives for Information and Related Technologies) are indispensable frameworks for ensuring efficient service delivery, robust governance, effective risk management, and compliance. ITIL: This framework provides a comprehensive set of best practices for IT Service Management (ITSM) across the entire service lifecycle, from strategy and design to transition, operation, and continual improvement. It offers detailed guidance for efficient service delivery, maintaining high service quality, and improving customer satisfaction. ITIL's focus is on the practical aspects of managing IT services. COBIT: Primarily focused on IT governance, risk management, and compliance, COBIT helps organizations ensure that their IT systems support business objectives, comply with regulations, and effectively manage IT- related risks. Its scope is broader than ITIL, addressing IT governance as a whole and providing a framework for aligning IT with business strategies. The synergy between ITIL and COBIT is powerful for GCCs. ITIL provides the "how-to" for designing and implementing effective service management processes, while COBIT provides the "what-to-govern" for IT strategy and risk. Together, they offer a comprehensive approach to IT performance and control within a GCC, ensuring that IT services are delivered efficiently and reliably while supporting broader business goals and regulatory requirements. GCC Maturity Models: Assessing Current State and Charting Evolution Maturity models, such as KPMG's GCC Maturity Model, are valuable tools for assessing a GCC's current capabilities, strengths, and areas for enhancement across various dimensions including cost-effectiveness, strategic alignment, digital readiness, and talent management. These models typically define maturity levels (e.g., Novice, Beginner, Intermediate, Advanced, Expert) and assign weighted scores for a comprehensive assessment. A maturity assessment provides a holistic understanding of operational maturity, enables benchmarking against industry peers, identifies strategic priorities, and helps chart a roadmap for advancement. It allows organizations to strategically allocate resources and prioritize investments based on a clear understanding of their current maturity level relative to industry benchmarks.

24. PAGE 24 The Power of Data Analytics and AI: Enabling Real-time Insights and Predictive Capabilities Advanced data analytics and Artificial Intelligence are transforming performance measurement by enabling real- time monitoring, predictive insights, and automated reporting within GCCs. These technologies are not merely tools but represent a fundamental shift in how performance is measured, analyzed, and improved. The benefits for GCCs are substantial: Improved Decision-Making: AI and Machine Learning transform GCC operations, enabling smarter decisions and superior customer experiences. Predictive analytics identifies bottlenecks, optimizes resource allocation, and forecasts demand, allowing for proactive planning. Enhanced Efficiency & Accuracy: Automation, powered by Robotic Process Automation (RPA) and AI-driven tools, significantly reduces manual tasks, improving accuracy and efficiency. For example, automation can cut process turnaround times by up to 50% and reduce error rates by as much as 70%. AI code reviews and automated testing further reduce technical debt and improve software productivity. Real-time Monitoring & Reporting: Dashboards track KPIs across departments in real-time, providing immediate insights into performance and allowing for prompt adjustments. Risk Management: AI-driven threat detection and predictive analysis strengthen fraud detection and regulatory compliance, enhancing the GCC's resilience against risks. An elite measurement system involves the integrated application of these frameworks. While Benchmarking, ITIL/COBIT, Maturity Models) offers distinct benefits, their combined use creates a truly comprehensive and dynamic measurement system. Data analytics and AI then become the enablers that power all these frameworks with real- time, actionable insights. A piecemeal approach to measurement will yield suboptimal results; true exemplary measurement involves understanding how these frameworks complement each other to provide a multi-faceted, dynamic view of GCC performance, moving beyond static reporting to predictive and prescriptive analytics. The challenge lies not just in implementing each framework, but in orchestrating them effectively to generate synergistic value. each framework (BSC, AI's role extends beyond being a mere tool; it functions as a transformative layer that fundamentally shifts how performance is measured, analyzed, and optimized within GCCs. AI doesn't just measure performance; it optimizes it. This means GCCs are not just measuring their efficiency, but also the impact of AI on their efficiency. This creates a powerful feedback loop where AI- driven insights lead to AI-driven improvements, accelerating the GCC's value creation. The future of GCC performance evaluation frameworks will be intrinsically linked to AI's capabilities, moving from descriptive to predictive and ultimately prescriptive analytics, enabling GCCs to proactively shape their future performance.

25. PAGE 25 Overcoming Common Challenges in GCC Performance Measurement While the benefits of robust GCC performance measurement are clear, organizations frequently encounter a range of challenges. Addressing these systematically is crucial for maximizing the value derived from measurement efforts. Addressing Data Quality, Consistency, and Integration Issues A significant challenge in GCC performance measurement is the fragmentation of data across different systems, a lack of standardization in data collection, and poor data governance practices. These issues can severely hinder accurate measurement and reliable analysis. Without consistent, high-quality data, any performance metrics generated will be unreliable, leading to flawed conclusions and ineffective strategic adjustments. To overcome this, organizations must establish a robust data foundation. This involves cultivating a data-centric culture where data integrity is prioritized, investing in cutting-edge infrastructure capable of handling large datasets, and implementing rigorous data governance practices to ensure data quality and consistency. Additionally, deploying integrated IT systems is essential to ensure seamless data flow across all functions and departments, enabling a unified view of performance.

26. PAGE 26 Navigating Cultural Nuances and Fostering Cross-Border Collaboration Cultural disconnects, communication bottlenecks, and inherent resistance to change can significantly impact GCC performance and talent retention. When diverse global teams collaborate, differing work styles, communication preferences, and cultural expectations can create friction, impeding efficiency and morale. Employee fears regarding job security due to GCC establishment can also lead to resistance. Effective solutions involve fostering a unified corporate culture through regular training and team-building activities that bridge cultural gaps. Implementing comprehensive change management programs that clearly communicate the benefits of the GCC model and address employee concerns transparently is vital. Encouraging open communication channels and promoting peer-to-peer learning can build trust and facilitate smoother cross-border collaboration. Balancing Cost Efficiency with Strategic Value Creation Many GCCs are initially established with aggressive cost-saving targets. However, an exclusive focus on these targets can inadvertently lead to underinvestment in strategic areas like innovation, talent development, and advanced technology adoption, ultimately eroding long-term value. This creates a tension between short-term financial gains and long-term strategic growth. To balance this, organizations should adopt a "Cost Efficiency with Value Realization" KPI, which blends cost savings metrics with qualitative value delivered, assessing if the organization is "getting more for less". Prioritizing initiatives based on their strategic importance and overall ROI, rather than solely on immediate cost reduction, is crucial. Critically, a portion of the realized cost savings should be strategically reinvested into technology adoption, workforce training, and innovation initiatives to fuel future growth and capabilities. Ensuring Continuous Alignment with Evolving Business Needs GCCs can become misaligned with parent company objectives if their mandates are unclear or if business needs evolve rapidly without corresponding adjustments in the GCC's strategy. This can lead to a disconnect where the GCC feels underutilized and the parent company perceives limited ROI. The solution lies in defining clear, measurable, and time-bound objectives for the GCC that are explicitly aligned with overall corporate strategy. Regular performance assessments and reviews based on data insights are essential to adapt operations and strategies to evolving business needs. Implementing a Strategy Realization Office (SRO) can further ensure continuous alignment by providing clear direction, monitoring progress, and facilitating communication between the GCC and the parent organization. Building an Ownership Culture and Empowering Local Leadership A persistent "back office" mindset can severely limit a GCC's potential, preventing it from evolving into a proactive value creator. Over-dependence on Headquarters (HQ)-based leadership can also slow agility and hinder local decision-making, leading to frustration and underutilization of local talent. To counter this, leaders must instill a mindset of ownership and outcome-orientation within the GCC. This involves empowering local leadership with decision-making authority while ensuring alignment with enterprise- wide objectives. Fostering a culture of accountability, sustainable innovation, and rapid experimentation is key, where teams are encouraged to challenge the status quo and co-create solutions with business stakeholders. Leading by example, where leaders take responsibility for their actions and foster an environment free from blame, is paramount.

27. PAGE 27 Mitigating Resistance to Change and Ensuring Talent Retention Employee fears of job elimination due to GCC establishment, coupled with skill gaps and intense competition for niche talent, pose significant challenges to GCC success. A lack of clear communication and perceived threats to job security can lead to disengagement and high attrition. Transparent communication about the GCC's intent and the growth opportunities it presents is crucial for maintaining morale and engagement. This should be complemented by continuous learning programs, personalized growth paths, and robust leadership development initiatives that upskill teams and promote professional growth. Offering competitive compensation and fostering an engaging work culture with recognition and incentives are also vital for attracting and retaining top talent. A common challenge, often referred to as the "watermelon effect," arises when internal operational KPIs appear favorable (green), but the actual customer or stakeholder experience is poor (red). This is implied by the need for holistic measurement and the explicit mention of "unmet SLAs" and "dissatisfied stakeholders". This phenomenon highlights that relying solely on internal operational efficiency metrics without validating them against stakeholder satisfaction can lead to a false sense of success, ultimately undermining the GCC's strategic value and potentially leading to business unit dissatisfaction or even insourcing. The solution is not merely to collect more data, but to ensure that data is better integrated and contextualized within a balanced measurement framework that includes customer and stakeholder perspectives. Furthermore, the nature of "risk" in GCCs is evolving beyond traditional geopolitical concerns. While geopolitical risks are acknowledged, organizations must also contend with significant "data security and privacy concerns", "skill gaps and talent shortages", the risk of "innovation stagnation", and the "changing tax and regulatory landscape". This indicates that risk management in GCCs is far more complex than just location-based stability. This implies that GCC risk frameworks must evolve from traditional geopolitical and operational risks to encompass emerging risks like cyber threats, intellectual property leakage, talent market volatility, and the risk of innovation stagnation. This requires proactive monitoring and integration of risk management into every pillar of GCC measurement, not just as a separate compliance function. The "Risk Mitigation Effectiveness" KPI must therefore be expanded to cover this broader spectrum of risks.

28. PAGE 28 Translating Insights into Actionable Strategies The true value of comprehensive GCC performance measurement lies in its ability to translate data into actionable strategies that drive continuous improvement and strategic growth. Without this translation, even the most sophisticated measurement frameworks remain academic exercises.

29. PAGE 29 From Data to Decision: Using KPIs for Continuous Improvement Cycles The first step in leveraging performance data is to establish mechanisms for real-time monitoring and analysis. Implementing dashboards that track KPIs across various departments provides immediate visibility into performance trends. This real-time data allows for prompt identification of bottlenecks and inefficiencies within processes. The mechanism for continuous improvement involves regular performance reviews based on these data insights, enabling leaders to adjust strategies dynamically. Organizations must foster a culture of continuous improvement, where teams are encouraged to learn from experiences, seek feedback, and proactively identify areas for enhancement. This iterative process ensures that measurement is not a static report but a dynamic feedback loop. It is crucial to make metrics actionable; simply accumulating measurements without the ability to act on the insights they provide renders the entire exercise hollow. This means that the design of KPIs should be backward-engineered from the desired actions or strategic adjustments. If a KPI does not clearly indicate a course correction or a success to replicate, its value is diminished. This calls for strong analytical capabilities within the GCC and the parent organization, enabling them to convert raw data into strategic intelligence. It also highlights the need for a culture that supports data-driven experimentation and rapid iteration. Effective solutions involve fostering a unified corporate culture through regular training and team-building activities that bridge cultural gaps. Implementing comprehensive change management programs that clearly communicate the benefits of the GCC model and address employee concerns transparently is vital. Encouraging open communication channels and promoting peer-to-peer learning can build trust and facilitate smoother cross-border collaboration. Strategic Resource Allocation and Investment Prioritization KPI insights are invaluable for optimizing resource allocation and prioritizing investments across the GCC and the broader enterprise. For example, if the talent skill index indicates a gap in future-critical areas, the data directly supports increased investment in targeted training and development programs. Similarly, if automation impact metrics demonstrate significant efficiency gains, this data justifies prioritizing further automation initiatives. The mechanism for this involves linking budget directly to strategy through frameworks like the Balanced Scorecard, ensuring that financial resources are allocated to initiatives that drive strategic objectives. Conducting detailed feasibility studies, supported by robust performance data, helps quantify the potential benefits of new initiatives, enabling informed investment decisions. Fostering a Culture of Accountability, Innovation, and Agility KPI insights are invaluable for optimizing resource allocation and prioritizing investments across the GCC and the broader enterprise. For example, if the talent skill index indicates a gap in future-critical areas, the data directly supports increased investment in targeted training and development programs. Similarly, if automation impact metrics demonstrate significant efficiency gains, this data justifies prioritizing further automation initiatives. Leaders must lead by example, demonstrating accountability by taking responsibility for their actions and fostering an environment free from blame. Encouraging rapid experimentation and empowering teams to challenge the status quo are vital for fostering innovation. Promoting agile ways of working further enhances the GCC's ability to adapt quickly to changing demands.

30. PAGE 30 Fostering a Culture of Accountability, Innovation, and Agility Translating measurement into action also requires cultivating a supportive organizational culture. This begins with defining clear goals and expectations for individuals and teams, ensuring everyone understands their role in achieving broader objectives. Providing effective, constructive feedback and celebrating successes reinforces desired behaviors and motivates continuous improvement. Leaders must lead by example, demonstrating accountability by taking responsibility for their actions and fostering an environment free from blame. Encouraging rapid experimentation and empowering teams to challenge the status quo are vital for fostering innovation. Promoting agile ways of working further enhances the GCC's ability to adapt quickly to changing demands. Future-Proofing Your GCC: Adapting to Emerging Trends The dynamism of the global business landscape necessitates continuous adaptation. GCCs must proactively monitor market trends and emerging technologies to remain competitive. This includes strategic investments in AI, Generative AI, Machine Learning, and scalable cloud infrastructure. The mechanism for future-proofing involves developing clear AI use cases, prioritizing AI/ML integration for predictive insights, and creating AI-powered self-service portals to enhance automation. Building strong university partnerships is essential for developing talent in niche and emerging skill areas. Furthermore, adopting flexible work models, such as hybrid work, and integrating sustainability initiatives into operations are crucial for attracting talent and aligning with global best practices. GCCs are not just service delivery centers but often serve as "living laboratories" where new technologies, processes, and talent strategies are piloted and refined before being scaled across the broader enterprise. They are actively spearheading innovation and operational excellence , experimenting with cutting-edge technologies like AI and ML. This implies that measuring their success involves not just their direct output, but their contribution to the parent company's learning and transformational capacity. This elevates the GCC's role to a strategic R&D and innovation engine for the entire organization, influencing global market expansion and product differentiation.

31. PAGE 31 Conclusion: The Future-Ready GCC as a Strategic Asset The evolution of Global Capability Centers from mere cost arbitrage units to strategic powerhouses is undeniable. Effective measurement of GCC efficiency and success therefore transcends traditional cost-saving metrics, embracing a holistic view that encompasses financial impact, operational excellence, talent development, innovation, strategic alignment, customer satisfaction, risk management, and ESG contributions. This multi-dimensional approach is not merely a best practice; it is essential for demonstrating the full strategic value of GCCs and ensuring their sustained contribution to global enterprise objectives. The future-ready GCC is a dynamic, agile, and AI-powered entity that acts as a true strategic partner, not merely a support function. Its sustained success hinges on continuous performance monitoring, data-driven decision- making, fostering an ownership culture, and proactive adaptation to emerging trends and challenges. By embracing these principles, organizations can unlock the full potential of their GCCs, transforming them into indispensable engines of growth, innovation, and resilience in an increasingly complex and competitive global marketplace. In a hyper-connected global economy, success belongs to those who can translate raw data into refined strategy and performance metrics into a "competitive muscle". This implies that a well-measured and optimized GCC is not just an internal efficiency unit, but a source of external competitive advantage. This "muscle" allows for faster time- to-market, greater agility, and superior talent access. Robust GCC measurement is therefore a strategic imperative for any global enterprise aiming to thrive in the digital age, enabling them to outmaneuver less agile competitors. Effective solutions involve fostering a unified corporate culture through regular training and team-building activities that bridge cultural gaps. Implementing comprehensive change management programs that clearly communicate the benefits of the GCC model and address employee concerns transparently is vital. Encouraging open communication channels and promoting peer-to-peer learning can build trust and facilitate smoother cross-border collaboration. Even as GCCs become more technologically advanced and AI-driven, the "human quotient" remains paramount. The importance of effective leadership, employee experience, an ownership culture, talent density, and human-machine collaboration is consistently highlighted. The "Talent Skill Index" and "Employee Management" KPIs underscore the enduring significance of the human element. This indicates that even as GCCs become more technologically advanced, the ability to attract, develop, engage, and retain top talent, foster a culture of ownership, and provide visionary leadership will ultimately determine how effectively a GCC can leverage technology and translate capabilities into strategic impact. Measurement frameworks must therefore rigorously assess both technological prowess and human capital health, recognizing that the synergy between the two is the true driver of exemplary success.

32. Inductus GCC Service Models India’s Leading GCC Enabler BOT (Build-Operate-Transfer) A structured pathway to establishing your GCC with minimized risk and maximum efficiency. We build and operationalize your center, ensuring seamless performance before transferring full ownership to you— equipping your business with a mature, self-sustaining capability. COPO (Company-Owned, Partner-Operated) Maintain full ownership while leveraging Inductus’ operational expertise. This model enables you to establish a GCC with absolute control over intellectual assets (IP), agility, and scalability while we manage day-to-day operations, ensuring zero liability, compliance, and maximum efficiency. Additionally, a Zero Capex Model with Digital Twin or a Mirror Like Operational Structure with superior process excellence. FLEXI (Adaptive & Custom GCC Solutions) Beyond predefined structures, Flexi is a bespoke model offering absolute customization and adaptability. It molds itself around your unique business prerequisites, evolving seamlessly with your vision. This isn't just a service—it’s an agile, high-impact partnership crafted to maximize your success. Proud recipient of Times Power Icons Award for being one of the Leading GCC Enabler of India Inductus ensures that each model is executed with precision, innovation, and strategic foresight—helping you unlock the full potential of your GCC in India. Presented by Our deep expertise in GCCs, coupled with a strong network of industry partnerships and policy-level advisory, positions us as a trusted partner for driving transformational outcomes. Certificate of Excellence’ for Consulting & Advisory Services by Chicago Open University USA gcc@inductusgroup.com www.indcutusgcc.com +91-92346-92346

33. COPO & Digital TwinIntegrated Service Model A study based proposition to build a global standard GCC mechanism for Large & Mid-sized Corporations Inductus GCC’s Digital Twin and COPO (Company-Owned, Partner-Operated) Service Model creates a seamless, future-ready operational framework for global businesses setting up GCCs in India. The Digital Twin Process ensures real-time collaboration, decision-making, and operational efficiency by replicating physical systems in a virtual environment, enabling synchronized execution across multiple time zones. Meanwhile, the COPO Model allows MNCs to retain full ownership and strategic control while leveraging Inductus’ expertise for execution, compliance, and scalability. "In a world full of rapid tech & process disruptions, global corporations that invest in innovation-led R&D don’t just survive—they lead. Innovation is the key to staying relevant, cost- competitive, and future-ready in an ever- evolving marketplace…” Alouk Kumar - CEO, Inductus This hybrid approach optimizes costs, mitigates risks, and accelerates GCC growth, ensuring innovation-driven operations with minimal liabilities and maximum efficiency. gcc@inductusgroup.com www.indcutusgcc.com +91-92346-92346

34. INDUCTUS GCC INDUCTUS GCC Designed to be Different

35. 20 25 w w w . i n d u c t u s g c c . c o m