In todays’ hyper-paced business environment where continuous delivery and continuous innovation have become a norm, CIOs must take a continuous approach to budget optimization as well. With so much c-suite thrust on balancing innovation with cost and delivery, it’s safe to assume that this is continuously on their mind! While the technology itself dominates the narrative when it comes to budget allocation, the people who manage and deliver the technology is an equally important aspect that can not only contribute to cost arbitrage, but also deliver immense value to the enterprise.
For this it’s important that IT leaders take a more strategic view of talent acquisition and management (both internal and external), unlike the tactical approach they usually take. We recently did a study of IT cost structures to help our clients understand how to think about their overall IT costs and how to use the right talent management strategy to free up budgets. The study was conducted across diverse companies and revealed that total IT talent costs are consuming on an average 53% of the IT budget! This points to a huge opportunity gap, both in managing IT talent and costs thereof.
A managed GIC sometimes referred to as the managed captive model is a proven framework for plugging these gaps and creating more value for your enterprise. It gives you all the strategic benefits of a Global In-House center, while mitigating your legal risks, protecting your IP risks and solving your day to day management issues. Plus, access to a quality talent pool means that your managed GIC can serve as the R&D and Innovation Hub for your enterprise and contribute positively to your bottom-line.
Versitae and Systems Plus together have decades of experience in operating this model for clients where our clients achieve 30%+ cost savings on average compared to traditional offshoring. Our experience allows us to refine our approach and fine tune our processes to make it easy and efficient for clients to adopt the MGIC model. From team design to Sourcing and Onboarding to managing the entire talent lifecycle, we can help you with end-to-end operationalization of your strategic talent pool.
The benefits of the MGIC platform are many – Not only is it a fully transparent model with complete control, but it’s also EBITDA accretive. Additionally, the MGIC platform gives you access to high quality tech talent with deep domain expertise in emerging areas like AI, data science and cloud. To discover it for yourself, reach out to us for a free consult along with a free price comparison matrix tailor made to your skill needs.