The GCC-IT Services Paradox: Why Tomorrow's Winners Choose Collaboration Over Competition Are GCCs Killing IT Services—Or Creating the Most Powerful Partnership in Tech History? Here's what's keeping C-suites awake: India now hosts over 1,600 GCCs, employing 1.5 million professionals and contributing $40 billion to services exports. Traditional IT services face headwinds. So, is this a zero-sum game? The answer surprised even me after three decades in technology leadership. The myth: GCCs are replacing IT services. The reality: The best organisations are orchestrating both to unlock unprecedented innovation velocity. I've witnessed this transformation firsthand across my consulting assignments in BFSI, healthcare, automotive, and telecom. Here's what changed: The outsourcing playbook of the 2000s—cost arbitrage and labour arbitrage—is dead. Today's game is about generative AI integration, quantum-ready architectures, edge computing capabilities, and resilient ecosystems that navigate geopolitical fragmentation. GCCs bring strategic alignment and long-term ownership. IT services bring specialised expertise and rapid deployment. When you architect these as complementary forces rather than competitors, magic happens. Consider this: the half-life of technical skills has collapsed to under three years. Leaders who view this as an HR problem will lose. Leaders who treat talent transformation as a C-suite strategic imperative will win. From my decades leading digital transformation initiatives: Traditional roles are declining. AI engineering, cybersecurity architecture, and sustainable tech design are surging by double digits annually. The question isn't whether to adapt—it's whether you'll lead the adaptation or watch from the sidelines. Three Decisive Actions for Leaders: A. Architect for collaboration, not competition. B. Make talent transformation a board-level priority. Invest in continuous learning pathways focused on generative AI, advanced analytics, and zero-trust architectures. C. Measure what matters. Move beyond activity metrics to innovation velocity, customer impact, and strategic differentiation. The convergence of GCCs and IT services will define the next decade of global competitiveness. The organisations that master collaborative innovation will lead. Those clinging to outdated models will follow. My question to you: Are you building ecosystems for collaboration or competition? What's the most significant barrier you face in creating these partnerships? Interested to know more? Read the full article in Business World: https://lnkd.in/dtEhyHfB Nexora Tech Solutions BW Businessworld #DigitalTransformation #GCC #ITServices #FutureOfWork #AILeadership #TechInnovation #CXOInsights #StrategicLeadership #GlobalCapabilityCenters #EnterpriseArchitecture #GenerativeAI #TalentTransformation #TechTrends #InnovationEcosystems
More Relevant Posts
-
Porter’s model was developed more than 45 years ago, at a time when industry boundaries were far more defined. Today, those lines have blurred — competition is fluid, dynamic, and increasingly cross-sectoral. Similarly, within organizations, business units have become more interconnected and synergistic, reflecting the same erosion of boundaries we see across industries. It’s fascinating to consider how we might reinterpret these timeless frameworks to fit our new reality. Perhaps it’s time for a Porter’s Five Forces 2.0 — and a BCG Matrix 2.0 as well.
Prof.em. digital strategy and innovation @ University of Antwerp - Certified expert in digital strategy & transformation (IMD & Insead) - >35.000 citations on Google Scholar
Part 2: 𝗕𝗲𝘆𝗼𝗻𝗱 𝗣𝗼𝗿𝘁𝗲𝗿’𝘀 𝗙𝗶𝘃𝗲 𝗙𝗼𝗿𝗰𝗲𝘀: 𝗧𝘂𝗿𝗻𝗶𝗻𝗴 𝗖𝗼𝗺𝗽𝗲𝘁𝗶𝘁𝗶𝗼𝗻 𝗶𝗻𝘁𝗼 𝗖𝗼𝗹𝗹𝗮𝗯𝗼𝗿𝗮𝘁𝗶𝗼𝗻 (Part 1: see https://lnkd.in/eNP8ih5Y) (Part 3: see https://lnkd.in/eYAnkeVS) Michael Porter’s Five Forces framework has shaped how managers and academics analyze industries. It remains an elegant way to map the external environment at the industry level. Porter’s view of strategy, however, was forged in an era when industries were stable, boundaries were clear, and competitive advantage was largely internal. The external environment was portrayed as hostile: every force around the firm—suppliers, buyers, new entrants, rivals, and substitutes—was a potential threat to profitability. Strategy was about defending margins, erecting barriers, and capturing value. But today’s reality is far more fluid. Industries blend into one another, technologies converge, and value is co-created across networks. The same actors that once appeared only as adversaries have become indispensable partners for innovation, agility, and growth. Competitors may share platforms; suppliers co-develop technologies; customers co-create solutions; and substitutes may reveal entirely new markets. If we look at the business world through this new lens, Porter’s five “forces” can also be five “sources” of advantage. Collaboration doesn’t replace competition—it complements it. The real challenge for managers is to find the balance point along a continuum that runs from pure competition to deep collaboration. * Competitors remain rivals, but also potential partners in standard-setting, data sharing, or open-source development. * New entrants are disruptors, but also agile innovators with whom incumbents can partner, invest, or co-develop. * Suppliers can squeeze margins—but when engaged early in design, they become co-innovators. Toyota’s keiretsu model and Unilever’s annual innovation summits with strategic suppliers both show how collaboration can yield efficiency and renewal. * Customers may demand more, but their insights and data now drive innovation. Co-creation platforms—from LEGO Ideas to Tesla’s user forums—turn buyers into creative partners. * Substitutes, once seen only as threats, can signal new opportunities. Netflix, for instance, transformed from a DVD substitute to a platform that redefined how entertainment is consumed. The comparative table below contrasts Porter’s competitive interpretation of each force with a collaborative perspective—a framework better suited when success depends as much on connection as on protection. #Strategy #Innovation #Ecosystems #Collaboration #OpenInnovation #DigitalTransformation #Leadership #BusinessStrategy #MichaelPorter #BlueOceanStrategy #Coopetition #Agility #ValueCreation #Management
To view or add a comment, sign in
-
-
“Absolutely, Wim — this is a perfect articulation of why traditional competitive frameworks need a modern lens. In my experience leading enterprise-wide risk, AI, and information security programs across Fortune 50 organizations, I’ve seen firsthand that siloed, defensive strategies often stifle innovation, whereas structured collaboration across competitors, suppliers, and customers creates measurable value and resilience. Applying this mindset to digital and AI-driven ecosystems, the real advantage comes from embedding governance, shared standards, and auditable assurance into collaborative networks. Just as ISO 27001 and ISO 42001 turn compliance into trustworthy operational rigor, collaborative strategy frameworks turn shared risk, insight, and innovation into sustainable competitive advantage. Success today is not choosing between competition and collaboration — it’s orchestrating both with clarity, control, and accountability.” — Mark
Prof.em. digital strategy and innovation @ University of Antwerp - Certified expert in digital strategy & transformation (IMD & Insead) - >35.000 citations on Google Scholar
Part 2: 𝗕𝗲𝘆𝗼𝗻𝗱 𝗣𝗼𝗿𝘁𝗲𝗿’𝘀 𝗙𝗶𝘃𝗲 𝗙𝗼𝗿𝗰𝗲𝘀: 𝗧𝘂𝗿𝗻𝗶𝗻𝗴 𝗖𝗼𝗺𝗽𝗲𝘁𝗶𝘁𝗶𝗼𝗻 𝗶𝗻𝘁𝗼 𝗖𝗼𝗹𝗹𝗮𝗯𝗼𝗿𝗮𝘁𝗶𝗼𝗻 (Part 1: see https://lnkd.in/eNP8ih5Y) (Part 3: see https://lnkd.in/eYAnkeVS) Michael Porter’s Five Forces framework has shaped how managers and academics analyze industries. It remains an elegant way to map the external environment at the industry level. Porter’s view of strategy, however, was forged in an era when industries were stable, boundaries were clear, and competitive advantage was largely internal. The external environment was portrayed as hostile: every force around the firm—suppliers, buyers, new entrants, rivals, and substitutes—was a potential threat to profitability. Strategy was about defending margins, erecting barriers, and capturing value. But today’s reality is far more fluid. Industries blend into one another, technologies converge, and value is co-created across networks. The same actors that once appeared only as adversaries have become indispensable partners for innovation, agility, and growth. Competitors may share platforms; suppliers co-develop technologies; customers co-create solutions; and substitutes may reveal entirely new markets. If we look at the business world through this new lens, Porter’s five “forces” can also be five “sources” of advantage. Collaboration doesn’t replace competition—it complements it. The real challenge for managers is to find the balance point along a continuum that runs from pure competition to deep collaboration. * Competitors remain rivals, but also potential partners in standard-setting, data sharing, or open-source development. * New entrants are disruptors, but also agile innovators with whom incumbents can partner, invest, or co-develop. * Suppliers can squeeze margins—but when engaged early in design, they become co-innovators. Toyota’s keiretsu model and Unilever’s annual innovation summits with strategic suppliers both show how collaboration can yield efficiency and renewal. * Customers may demand more, but their insights and data now drive innovation. Co-creation platforms—from LEGO Ideas to Tesla’s user forums—turn buyers into creative partners. * Substitutes, once seen only as threats, can signal new opportunities. Netflix, for instance, transformed from a DVD substitute to a platform that redefined how entertainment is consumed. The comparative table below contrasts Porter’s competitive interpretation of each force with a collaborative perspective—a framework better suited when success depends as much on connection as on protection. #Strategy #Innovation #Ecosystems #Collaboration #OpenInnovation #DigitalTransformation #Leadership #BusinessStrategy #MichaelPorter #BlueOceanStrategy #Coopetition #Agility #ValueCreation #Management
To view or add a comment, sign in
-
-
Part 2: 𝗕𝗲𝘆𝗼𝗻𝗱 𝗣𝗼𝗿𝘁𝗲𝗿’𝘀 𝗙𝗶𝘃𝗲 𝗙𝗼𝗿𝗰𝗲𝘀: 𝗧𝘂𝗿𝗻𝗶𝗻𝗴 𝗖𝗼𝗺𝗽𝗲𝘁𝗶𝘁𝗶𝗼𝗻 𝗶𝗻𝘁𝗼 𝗖𝗼𝗹𝗹𝗮𝗯𝗼𝗿𝗮𝘁𝗶𝗼𝗻 (Part 1: see https://lnkd.in/eNP8ih5Y) (Part 3: see https://lnkd.in/eYAnkeVS) Michael Porter’s Five Forces framework has shaped how managers and academics analyze industries. It remains an elegant way to map the external environment at the industry level. Porter’s view of strategy, however, was forged in an era when industries were stable, boundaries were clear, and competitive advantage was largely internal. The external environment was portrayed as hostile: every force around the firm—suppliers, buyers, new entrants, rivals, and substitutes—was a potential threat to profitability. Strategy was about defending margins, erecting barriers, and capturing value. But today’s reality is far more fluid. Industries blend into one another, technologies converge, and value is co-created across networks. The same actors that once appeared only as adversaries have become indispensable partners for innovation, agility, and growth. Competitors may share platforms; suppliers co-develop technologies; customers co-create solutions; and substitutes may reveal entirely new markets. If we look at the business world through this new lens, Porter’s five “forces” can also be five “sources” of advantage. Collaboration doesn’t replace competition—it complements it. The real challenge for managers is to find the balance point along a continuum that runs from pure competition to deep collaboration. * Competitors remain rivals, but also potential partners in standard-setting, data sharing, or open-source development. * New entrants are disruptors, but also agile innovators with whom incumbents can partner, invest, or co-develop. * Suppliers can squeeze margins—but when engaged early in design, they become co-innovators. Toyota’s keiretsu model and Unilever’s annual innovation summits with strategic suppliers both show how collaboration can yield efficiency and renewal. * Customers may demand more, but their insights and data now drive innovation. Co-creation platforms—from LEGO Ideas to Tesla’s user forums—turn buyers into creative partners. * Substitutes, once seen only as threats, can signal new opportunities. Netflix, for instance, transformed from a DVD substitute to a platform that redefined how entertainment is consumed. The comparative table below contrasts Porter’s competitive interpretation of each force with a collaborative perspective—a framework better suited when success depends as much on connection as on protection. #Strategy #Innovation #Ecosystems #Collaboration #OpenInnovation #DigitalTransformation #Leadership #BusinessStrategy #MichaelPorter #BlueOceanStrategy #Coopetition #Agility #ValueCreation #Management
To view or add a comment, sign in
-
-
Beyond Porter 5 Forces. Turning competition into collaboration, or complementing it, is a fundamental enabler for sustainable innovation. HSLU - Institut für Innovation und Technologiemanagement IIT HSLU Master of Science in Engineering
Prof.em. digital strategy and innovation @ University of Antwerp - Certified expert in digital strategy & transformation (IMD & Insead) - >35.000 citations on Google Scholar
Part 2: 𝗕𝗲𝘆𝗼𝗻𝗱 𝗣𝗼𝗿𝘁𝗲𝗿’𝘀 𝗙𝗶𝘃𝗲 𝗙𝗼𝗿𝗰𝗲𝘀: 𝗧𝘂𝗿𝗻𝗶𝗻𝗴 𝗖𝗼𝗺𝗽𝗲𝘁𝗶𝘁𝗶𝗼𝗻 𝗶𝗻𝘁𝗼 𝗖𝗼𝗹𝗹𝗮𝗯𝗼𝗿𝗮𝘁𝗶𝗼𝗻 (Part 1: see https://lnkd.in/eNP8ih5Y) (Part 3: see https://lnkd.in/eYAnkeVS) Michael Porter’s Five Forces framework has shaped how managers and academics analyze industries. It remains an elegant way to map the external environment at the industry level. Porter’s view of strategy, however, was forged in an era when industries were stable, boundaries were clear, and competitive advantage was largely internal. The external environment was portrayed as hostile: every force around the firm—suppliers, buyers, new entrants, rivals, and substitutes—was a potential threat to profitability. Strategy was about defending margins, erecting barriers, and capturing value. But today’s reality is far more fluid. Industries blend into one another, technologies converge, and value is co-created across networks. The same actors that once appeared only as adversaries have become indispensable partners for innovation, agility, and growth. Competitors may share platforms; suppliers co-develop technologies; customers co-create solutions; and substitutes may reveal entirely new markets. If we look at the business world through this new lens, Porter’s five “forces” can also be five “sources” of advantage. Collaboration doesn’t replace competition—it complements it. The real challenge for managers is to find the balance point along a continuum that runs from pure competition to deep collaboration. * Competitors remain rivals, but also potential partners in standard-setting, data sharing, or open-source development. * New entrants are disruptors, but also agile innovators with whom incumbents can partner, invest, or co-develop. * Suppliers can squeeze margins—but when engaged early in design, they become co-innovators. Toyota’s keiretsu model and Unilever’s annual innovation summits with strategic suppliers both show how collaboration can yield efficiency and renewal. * Customers may demand more, but their insights and data now drive innovation. Co-creation platforms—from LEGO Ideas to Tesla’s user forums—turn buyers into creative partners. * Substitutes, once seen only as threats, can signal new opportunities. Netflix, for instance, transformed from a DVD substitute to a platform that redefined how entertainment is consumed. The comparative table below contrasts Porter’s competitive interpretation of each force with a collaborative perspective—a framework better suited when success depends as much on connection as on protection. #Strategy #Innovation #Ecosystems #Collaboration #OpenInnovation #DigitalTransformation #Leadership #BusinessStrategy #MichaelPorter #BlueOceanStrategy #Coopetition #Agility #ValueCreation #Management
To view or add a comment, sign in
-
-
Process: The word alone can make leaders cringe. It conjures images of bureaucracy, endless meetings, and innovation suffocated by red tape. But here's the brutal truth: It's not process that kills innovation. It's the lack of it. Think about it. Chaos, duplicated efforts, and misaligned decisions are the real culprits, silently strangling creativity and execution. The organizations that consistently innovate aren't just moving fast; they're moving deliberately, powered by systems that provide Clarity, Context, and Cadence. Process isn't a constraint; it's the infrastructure for innovation. It's how you scale creativity, reduce friction, and turn ambitious strategy into predictable, repeatable execution. This is especially critical when navigating complex initiatives like M&A integration, where clarity is paramount. In my latest blog post, I dive deep into: Why the 'move fast and break things' mantra becomes a liability at scale. The 3 foundational pillars of a truly process-led organization. A practical framework to build a culture where process enables innovation, not stifles it, moving you from 'Ad Hoc' to 'Adaptive.' Stop letting chaos dictate your growth. Learn how to build systems that empower your teams and accelerate your strategic initiatives. Read the full article and transform your approach to process: ➡️ https://lnkd.in/g5d9dSPt #ProcessImprovement #Innovation #OrganizationalDevelopment #Leadership #BusinessStrategy #SystemsThinking #ToebeConsulting #SaaS #IoT
To view or add a comment, sign in
-
Interesting article detailing how in large companies, technology leaders are now at the heart of strategy, innovation, and value creation. #DigitalTransformation #ITLeadership #Governance #Innovation
To view or add a comment, sign in
-
The foundation of every thriving enterprise rests on a single critical choice. After years of observing organizational dynamics across industries, I've come to understand that this choice determines whether a company merely survives or truly dominates its space. Most successful digital enterprises operate on one core framework for generating and sustaining value. This isn't coincidental. The framework a company adopts becomes its DNA, shaping everything from customer interactions to revenue streams. When leadership changes hands at any organization, the incoming executive inherits more than just teams and quarterly targets. They inherit the responsibility of validating or reimagining the fundamental approach to value creation. I've watched companies struggle not because they lacked talent or capital, but because their underlying approach to capturing value was flawed from the start. The most impactful decision any leader makes isn't about operational efficiency or market expansion. It's about choosing the right mechanism through which the organization will generate sustainable returns. Think about the platforms you interact with daily. Behind their interfaces lies a deliberate structure for monetization and growth. These structures aren't arbitrary. They're carefully designed systems that align customer needs with business objectives. When executed well, they create compounding effects that become nearly impossible for competitors to replicate. The challenge for modern executives is understanding these invisible architectures. What makes one approach to value capture more effective than another? Why do certain frameworks scale effortlessly while others collapse under growth? These questions matter more than most strategic initiatives combined. I'm constantly fascinated by how the best performing organizations have cracked this code. They've identified patterns that transcend individual products or services. They've built engines that generate value consistently, regardless of market conditions. For anyone building or leading an organization today, the question isn't whether you need a strong operational team or the right technology stack. The question is whether you've committed to a value creation framework that can withstand time and competition. Everything else flows from that fundamental decision.
To view or add a comment, sign in
-
Technology doesn’t fix culture - it magnifies it. If an organization is built on trust, tech creates speed and transparency. If it’s built on fear or control, tech becomes a surveillance tool that amplifies stress. According to 2024 Gartner survey (reflecting data from late 2023) found that only 48% of digital initiatives meet or exceed their business outcome targets. This implies a 52% failure rate. > Gartner research indicates that many digital initiatives fail to be "sufficiently deep corporate transformations", often focusing solely on technology rather than accompanying organizational and behavioral changes. > Other firms report higher failure rates: McKinsey and BCG consistently report that approximately 70% of digital transformation initiatives fail to achieve their objectives. Some sources suggest failure rates may be even higher (80%+), often pointing to misalignment, lack of change adoption, and organizational culture issues as key reasons. > A separate Gartner survey in late 2023 focusing on logistics found that 76% of transformations failed to meet critical performance metrics, with internal change resistance being a primary factor. A 2016 study by MIT Sloan Management Review and Deloitte, titled "Aligning the Organization for Its Digital Future", found that a significant number of employees and executives were prepared to leave companies that were not keeping pace with digital changes, and digitally maturing organizations were better at attracting new talent. A mature tech organization is no longer just an IT competency; it is the core operating system of a high-performing business. The pattern is actual very simple: Tech success = human clarity (ethics, skill, trust) + process discipline (orchestration, modular architecture). Automation works only when people trust the system and each other. Data builds confidence only when it’s used for insight, not inspection. When leadership sees technology as an enabler of accountability and collaboration, not control and compliance, teams thrive. When systems are designed to reduce human pain points - not to monitor them - transformation becomes sustainable. Technology doesn’t replace leadership; it reveals it. Because in every organization, tech is neutral - it only amplifies who we already are.
To view or add a comment, sign in
-
#Modernization requires alignment at every level. Yet according to new research from Netskope, only 36% of #CIOs say their company is adequately investing in digital transformation. And more than 2 in 5 CIOs say tech investment is falling short. This CIO Dive article is an excellent reminder of why it’s so important not to allow IT efforts to become siloed. Something that can often be avoided when you join forces with a trusted IT partner: https://lnkd.in/gyqJgFH5
To view or add a comment, sign in
-
The temptation is to think that Digital Transformation is about technology first. Digital Transformation is primarily about people. I've seen Digital Transformation projects fail because the focus was on the wrong thing. Technology plays a major role in the Digital Transformation process, but the people at the heart of it should be the real point of focus. There are 2 particular groups of people that need executive focus. Your customer's needs should drive your evolution. As you clarify their needs, you can introduce appropriate technologies that would best serve those needs. Introducing technology will not be impactful if your customer does not see the value in it. Your team's needs and current capacity should also be a point of focus. The technologies you introduce should make it easier for your staff to perform effectively. Technology adoption often fails when your staff wasn't included in the considerations, design and implementation of the Digital Transformation process. If your team does not see the value, they'll revert to the former processes. Effective innovation strategy and digital transformation strategy needs leaders who are human-centered. That would enable then to: ➡️ Engage their teams in the process ➡️ Enhance the way technology removes friction and enables team productivity and customer service delivery ➡️ Provide technology that delivers value to customers ➡️ Determine the right people-technology mix in your operations Let's remain focused on the people. #innovation #digitaltransformation #businesstransformation #strategy #innovationstrategy
To view or add a comment, sign in
More from this author
Explore content categories
- Career
- Productivity
- Finance
- Soft Skills & Emotional Intelligence
- Project Management
- Education
- Technology
- Leadership
- Ecommerce
- User Experience
- Recruitment & HR
- Customer Experience
- Real Estate
- Marketing
- Sales
- Retail & Merchandising
- Science
- Supply Chain Management
- Future Of Work
- Consulting
- Writing
- Economics
- Artificial Intelligence
- Employee Experience
- Workplace Trends
- Fundraising
- Networking
- Corporate Social Responsibility
- Negotiation
- Communication
- Engineering
- Hospitality & Tourism
- Business Strategy
- Change Management
- Organizational Culture
- Design
- Innovation
- Event Planning
- Training & Development