In today’s dynamic business landscape, shared services have undergone a remarkable transformation. Events like “Weekly with JC: Transforming Business Operations Through Shared Services” highlight the evolving role of Global Capability Centers (GCCs). With insights from industry leaders, this shift sets the stage for understanding how GCCs have transitioned from service hubs to strategic partners.
A Shift from Cost Efficiency to Value Creation
Global Capability Centers (GCCs), also known as Global In-House Centers (GICs) or Global Business Services (GBS) Centers, have significantly transformed over the years. Initially established to optimize costs through labor arbitrage, these centers have evolved into strategic partners delivering high-value services beyond traditional outsourcing models. Today, GCCs drive innovation, process efficiency, and business transformation for multinational corporations.
The GCC industry in the Philippines started strong due to the country’s Westernized business environment, English proficiency, and robust talent pool. This foundation enabled global companies to set up centers where Filipino professionals manage end-to-end business operations. Unlike outsourcing firms, GCCs do not operate under a vendor-client relationship; instead, they foster a collaborative, “we’re all in this together” approach. Employees are direct members of the companies they serve, ensuring deeper integration and strategic alignment.
Beyond being operational hubs, GCCs now focus on value creation. Organizations ask, “What else can be done?” rather than just seeking cost reductions. This mindset shift has led to service expansion across analytics, finance, IT, and HR, transitioning from basic operational roles to high-impact business functions.
The Role of Flexibility
The pandemic accelerated workplace flexibility, and many GCCs have adopted hybrid models based on market demands. While the industry operates 24/7, employees are often measured by productivity rather than physical presence, reflecting a shift toward performance-driven work environments.
The evolution of the shared services industry has allowed for flexible setups, making operations effective through face-to-face work, remote work, or a combination of both. Paolo La’O and Lorena Biclar, General Manager of Regal Rexnord Philippines, emphasized that hybrid and remote work have become the new norm, offering employees flexibility while still meeting business objectives. On the other hand, John Pastor, Manila Office Site Director of a shared services company, highlighted the importance of face-to-face interactions in fostering engagement. He encouraged in-person work up to four times a week, as collaboration is vital to maintaining strong team dynamics.
Regardless of the setup, at the end of the day, it is all about the people. The key to sustaining motivation and ensuring employees meet key performance indicators (KPIs) is understanding what works best for them. After all, shared services is a people business—engagement and empowerment remain at the heart of operational success. Simply put, what’s more important is what keeps the talent motivated and engaged.
Own Your AI
Artificial Intelligence (AI) is also shaping the future of GCCs. However, integration is not a simple plug-and-play process. Security, confidentiality, and regulatory concerns require a thoughtful approach. The true challenge, however, is not AI itself but ensuring that employees are equipped with the right knowledge to integrate AI effectively into their workflows. The key to AI adoption is not the AI itself but rather the education around it—helping employees understand and leverage AI rather than fearing displacement. While AI tools assist with activities such as quality monitoring, the true revolution lies in how firms train and empower their employees to “own their AI.”
Companies like Regal Rexnord Philippines exemplify this growth, having evolved from simple operational functions to strategic roles in analytics and finance. This expansion highlights a shift from manual processes to AI-supported decision-making, demonstrating the industry’s ongoing transformation.
Opportunities for Growth and Expansion
The increasing demand for shared services presents a unique opportunity for JCCI. Many companies still lack global operations awareness or local subject matter expertise, giving well-established organizations like JCCI a competitive advantage.
The evolution of the shared services field from labor arbitrage to strategic business assets reflects a broader shift in the global business ecosystem. With AI integration, increased flexibility, and a focus on value creation, GCCs are poised to drive even greater transformation. The question is no longer about cost savings but sustainable growth and long-term impact in the global economy.
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