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Acquisition of SMC Squared, a top player in crafting global competence centers, by Hexaware has been finalized.

Global IT solutions and services provider Hexaware Technologies (NSE: HEXT) announces the acquisition of SMC Squared, a pioneer in creating global capability centers (GCCs). This strategic move is part of Hexaware's goal to offer advanced GCC solutions, surpassing just cost efficiency, and...

Hexaware Purchases SMC Squared, a Preeminent Entity in Growing International Skill Hubs
Hexaware Purchases SMC Squared, a Preeminent Entity in Growing International Skill Hubs

Acquisition of SMC Squared, a top player in crafting global competence centers, by Hexaware has been finalized.

### Hexaware Acquires SMC Squared: Paving the Way for GCC 2.0

In a significant move towards the future of Global Capability Centers (GCCs), Hexaware Technologies has announced the acquisition of SMC Squared, a renowned leader in building Global Capability Centers (GCCs). This strategic move is designed to deliver future-proof GCC solutions and bring institutional maturity and a trusted execution model to Hexaware.

SMC Squared has already demonstrated its transformative impact on businesses, as evidenced by Papa John's International, who found partnering with SMC to build their dedicated GCC team to be a game-changer. The combined organization now offers a unified GCC services stack spanning advisory, setup, operations, and optimization.

The new GCC 2.0 service line, a result of this merger, combines SMC Squared's GCC build-operate expertise with Hexaware's platform-led IT delivery capabilities. SMC Squared operates through various engagement models such as managed services, build-optimize-transfer, and hybrid solutions, ensuring flexibility to cater to diverse business needs.

### The Evolution of GCCs: From Cost Centers to Innovation Hubs

GCC 2.0 represents the next phase in the evolution of Global Capability Centers (GCCs), moving them from their traditional role as cost-efficient, back-office service providers to becoming strategic centers of innovation, digital product development, and value creation for their parent organizations.

Key differences between GCC 2.0 and traditional GCCs include a shift in primary focus from cost arbitrage and transactional operations to strategic innovation, digital product development, R&D, and business transformation. GCC 2.0 centers are integrated into core business outcomes and growth initiatives, driving transformation rather than just supporting it.

The capabilities of GCC 2.0 centers have also evolved, with a focus on advanced analytics, AI/ML, data engineering, cybersecurity, and cloud computing. The talent profile has shifted from operational and process-oriented skills to high-end technological, digital, and innovation skills.

### Strategic Shifts and Implications

The shift towards GCC 2.0 has several strategic implications. GCCs are no longer just about saving money; they are about delivering advanced capabilities—such as AI, data analytics, and digital engineering—that drive the parent company’s strategic agenda. GCC 2.0 centers are expected to "think ahead" of their parent firms, anticipating market trends and developing next-generation solutions.

There is a growing emphasis on building industry-ready talent through academia-industry partnerships, especially as GCCs expand beyond major cities into India’s tier II and III regions. New regulations like India’s Digital Personal Data Protection (DPDP) Act 2023 also shape how GCCs operate, emphasizing data privacy and security as part of their value proposition.

### The Future of GCCs

The global GCC market is accelerating, with the GCC sector in India alone expected to cross $100 billion by 2030. Hexaware's acquisition of SMC Squared marks a significant step in this direction, positioning the combined entity as a leader in delivering future-proof GCC solutions.

With SMC Squared's expertise and Hexaware's platform-led IT delivery capabilities, the new GCC 2.0 service line promises to deliver strategic value, innovation, and growth for businesses worldwide. The future of GCCs is bright, with a focus on strategic innovation, digital product development, and value creation for their parent organizations.

  1. As businesses increasingly rely on advancements in technology, the acquisition by Hexaware Technologies of SMC Squared can provide a significant boost to the finance and health sectors, given SMC Squared's expertise in worldwide GCC services and Hexaware's IT delivery capabilities.
  2. In the realm of business news, the evolution of GCCs from cost-efficient service providers to strategic innovation hubs is driving a paradigm shift in the way news outlets cover technology and corporate strategy.
  3. As the GCC market continues to expand and mature, the opinions of industry experts will play a crucial role in shaping the future of health, finance, and business, as GCCs become increasingly integral to digital product development and value creation.

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