Market Share For Global In-House Centers (GICs) Strategically Shifting

, and companies that have existing GICs have been expanding the scope of what those GICs do. This surge in GIC build and expansion is coming at the expense of the third-party services market.

There is a complicating factor in this analysis. The service providers are shedding excess labor that was accumulated during the COVID boom and accompanying high employee attrition. However, the GICs also experienced similar conditions with rapid COVID expansion and high employee attrition. As the dust settles, we see that the GIC employment continues to expand while the service provider employment is modestly falling.There are three drivers for this phenomenon.

The changed mind set elevating the importance of control and flexibility is also impacting business process function workloads that are candidates for managed services, or outsourcing the emergence of broad software platforms that underpin and integrate these services. Hence, both the IT and BPO estates that would have been moved or are already in the hands of service providers are increasingly viewed as strong candidates for the GIC vehicle.

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