McKinsey Talks Operations Beyond cost savings: The global footprint of innovation hubs
Mar 28, 2025
Indy Banerjee, Senior Partner at McKinsey, and Jack Madrid, President and CEO of IBPAP, dive into the evolution of Global Capability Centers. They discuss transforming these centers into innovation hubs rather than just cost-saving solutions. The conversation highlights the role of AI adoption, the need for resilient workforce strategies, and the importance of cultural alignment in organizations. They also explore how geopolitical factors impact global workforce trends, particularly in the Philippines, emphasizing continuous skill development for future success.
AI Snips
Chapters
Transcript
Episode notes
Philippines ITBPM Industry
- The IT and Business Process Association of the Philippines (IBPAP) has 410 member organizations and 1.82 million digital workers.
- The industry generated $38 billion, 8.5% of the Philippines' GDP, in 2023.
GCC Evolution
- Global capability centers (GCCs) have evolved from cost-saving execution centers to microcosms of entire organizations.
- Now called "global operating models," they house significant leadership and a larger percentage of the overall workforce.
Talent Development
- Focus on upskilling and right-skilling your workforce in domain skills and technology to transform GCCs into innovation hubs.
- This requires collaboration between businesses, academia, and governments to adapt curricula.