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Business News/ Brand Post / Global captives must focus on observability to stay leaders of global innovation
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BRAND POST

Global captives must focus on observability to stay leaders of global innovation

With GCCs in India now responsible for innovation for many of the world’s biggest companies, it’s critical that leaders within these organisations ensure they’re able to deliver accelerated digital transformation programs in a sustainable way and maximise return on investment.

Abhilash Purushothaman, Regional Vice President & General Manager (Asia) at AppDynamicsPremium
Abhilash Purushothaman, Regional Vice President & General Manager (Asia) at AppDynamics

India continues to be the destination of choice for multinational companies setting up Global Captive Centers (GCCs). According to a recent survey from NASSCOM, around 100 organisations established their global in-house capability centres in India during 2021, and it’s no longer just banks and healthcare companies that are doing so. Increasingly, we’re seeing companies from a much broader range of sectors choosing to outsource critical operations and innovation to India, from retail and lifestyle, through to pharmaceutical and automotive.

The survey reports that 1,600 global firms now have captive units in India, with several having more than one centre. All told, these GCCs are employing 1.3 million people, almost a third of the total technology workforce in India.

While general job creation is of course good news for the Indian economy, what’s really exciting about this new wave of GCCs opening up is the fact that in the vast majority of cases, these new centres are focused on technological innovation. Rather than the process-driven work that traditionally characterised the offshore or Business Process Outsourcing market, leading organisations are now turning to India to design, lead and accelerate their strategic digital transformation initiatives.

Business leaders are recognizing that only India can provide the scale of high quality skills they need in areas of bleeding edge technology such as AI, the Internet of Things and data science.

India has become the world’s leading innovation hub and it will continue to cement this position, with NASSCOM predicting that a further 500 new GCCs will open up over the next four years.

Heightened consumer expectations heap pressure on to GCCs

With GCCs in India now responsible for innovation for many of the world’s biggest companies, it’s critical that leaders within these organisations ensure they’re able to deliver accelerated digital transformation programs in a sustainable way and maximise return on investment.

This is particularly true when set against a backdrop of rapidly rising consumer expectations for high quality digital experiences, all across the world. In the recent App Attention Index 2021 report from AppDynamics, 61% of global consumers reported that their expectation of digital services has changed forever during the pandemic and they won’t tolerate poor performance any more. And more than half readily admit that brands have only one shot to impress them and that if their digital service does not perform, they won’t use them again.

This is the environment in which GCCs are now operating – they know that a single IT performance issue can cause significant financial and reputational damage.

Indian innovation must not be de-railed by soaring IT complexity

However, there are currently widespread concerns that relentless innovation is starting to take its toll on many IT departments. In another recent study conducted by AppDynamics, Agents of Transformation: The Rise of Full-Stack Observability, 85% of technologists in India said that their organisation’s response to the pandemic has created more IT complexity than they have ever experienced before.

Much of this complexity has been driven by an acceleration of cloud computing initiatives over the last two years, with technologists now required to manage an increasingly sprawling IT estate, across both legacy and cloud environments. This is making it extremely difficult for them to effectively optimise IT performance and ensure faultless digital experience at all times.

Even where GCCs have implemented monitoring solutions, most IT departments still aren’t able to get a single, unified view on performance up and down the IT stack. In fact, our research revealed that 86% of technologists in India are still deploying multiple, disconnected monitoring solutions, more than in any other country. This means that they are facing a deluge of performance data but have no way to cut through the noise and turn this mass of data into meaningful insights.

Observability is critical to optimise digital experience and drive innovation

The last 12 months have exposed the limitations of traditional approaches to IT performance within new hybrid cloud environments. The reason for this is that within a software-defined, cloud environment, nothing is fixed; everything is constantly changing in real-time. And that makes monitoring far more difficult.

Traditional approaches to monitoring were based on physical IT infrastructure – technologists knew they were operating 10 servers and 15 network wires - they were dealing with constants. This then allowed for fixed dashboards for each layer of the IT stack. But such is the nature of cloud computing that organisations are continually scaling up and down their use of IT, according to business needs. For instance, a company might be deploying four servers to support a customer-facing application, but then suddenly increase that to 40 servers to meet a surge in demand in real-time, before dropping back down to six a few hours later.

The monitoring solutions currently being deployed within most GCCs in India simply aren’t designed for this dynamic use of technology and they fail when it comes to visibility into applications and underlying infrastructure for large, managed kubernetes environments running on public clouds. And that means that technologists can’t get full visibility of their IT performance in a single pane of glass view.

This is why GCCs need to implement a platform that delivers genuine visibility across all cloud infrastructure, from customer-facing applications through to core infrastructure such as network and storage. And in addition to this, they need to provide their technologists with a way to connect real-time IT performance insights withop business outcomes, such as customer experience, sales transactions and revenue.

Encouragingly, technologists already recognize the benefits of linking IT performance data to business metrics- they know this is crucial for them to identify and fix issues early before they impact end users, and to prioritise actions and investment based on what really matters to end users and business.

If GCC leaders are to achieve their ambitious innovation goals, the onus is now on them to provide their technologists with the tools and insights required to optimise IT performance and deliver the faultless digital experiences we have all come to expect.

This article is authored by Abhilash Purushothaman, Regional Vice President & General Manager (Asia) at AppDynamics

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Published: 19 Apr 2022, 10:12 AM IST
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