Background and Context

The global sourcing market has evolved and grown rapidly to reach a size of ~US$116 billion in 2011. GICs (formerly called “captives”) have been a core component of this evolution with companies such as GE and Texas Instruments setting up offshore GICs in the late 1980s and early 1990s.

The last 15-20 years have witnessed increasing adoption of the GIC model with a large number of companies setting up/expanding their GIC centers. While India continues to remain a leading destination, companies have also explored and successfully established GIC operations in China, Central and Eastern Europe, Latin America, and the Philippines.

However, due to the significant growth of third-party service providers and selective divestitures during the economic crisis have led to the perception that the GIC model is under threat. Stated reasons include GICs are not delivering value and are significantly more expensive than third-party service providers.

At the same time, mature users of GICs articulate their commitment to the model and reinforce its importance in their sourcing strategy and portfolio. In addition, our discussions with global sourcing offices of large companies and GIC leadership reveal imperatives under way to expand the role of GICs and their value proposition.

This research provides an in-depth analysis of the global offshore GIC landscape across leading locations. The report is updated every six months and is based on Everest Group’s proprietary GIC database. In addition to providing details on global GIC landscape trends and analysis, the report traditionally contains a focus section that provides a deep-dive into the GIC landscape of a select geography. This edition features Poland as the focus geography.

Scope

This research leverages Everest Group’s proprietary GIC database, the industry’s most comprehensive database on GICs. The analysis is based on GICs providing offshore delivery of global services, and excludes shared service centers of companies that serve domestic markets

• The data and Everest Group’s experience have been supplemented adequately by interactions with GICs and service providers on key topical themes of the study
• This report is applicable to a broad set of stakeholders – buyers, service providers, GIC organizations, and industry influencers (investors, industry bodies, etc)

Contents

The report analyzes the global offshore GIC landscape and key trends of the last 30 months (2009-2011). The report also provides detailed profiles of the global GIC landscape and trends in six key industry verticals – Banking, Financial Services, and Insurance (BFSI); Energy and Utilities; Healthcare; Manufacturing, Distribution, and Retail (MDR); Technology; and Telecom. The report concludes with a deep-dive of the offshore GIC landscape of Poland, covering market size and growth, distribution of GIC landscape, and comprehensive information on industry verticals.