Virtual Accelerators: An Asset-light business model for GCCs to conquer the global markets

Who knew a defensive way of saving from destruction could turn out to be a real business model? That’s how our now-trending asset-light model emerged. A simple modus operandi to thrive in the dynamic business market with the help of evolving technology and growing digitalization.

But that’s not how it all started. Let us rewind a bit and look back to the time when the asset-heavy approach was the crucial way of existence for companies and even startups. The heavy capital investment was the only approach to running a profitable business line. No one could have imagined at the time that scarcity of resources could give birth to the asset-light business model. However, the boom of technology not only streamlined glocalization and global convergence but also made the virtual stage self-sufficient to transform aspirations into goals.

Imagine a multinational company planning to solidify its presence in another country. The catch is that the company is not looking forward to investing much in the capital. While this idea may have sounded absurd and hypothetical a decade back, no one knew it would find its spot at the top in the 2020s. Gone are the days for the Global Captive Centers to invest a large sum of money in investments across various locations to establish their presence.

What is an asset-light model?

Investing in infrastructure, talent, and R&D amid today’s economic scenario is challenging. Even if you invest extensive capital in a business, scaling up would demand huge costs and time. Today, businesses are harnessing the underused assets at their full potential through collaborative efforts. Add virtualization to this equation, and you get a strategic establishment of processes and infrastructure with the ease of operating virtually. It’s not just a concept but a necessity for global businesses that are eager to expand their presence in more than one location with their captive unit but are struggling with labor, market research, infrastructure, and more.

Take it this way. While an asset-heavy model involves extensive capital and gives almost no flexibility to business leaders to accommodate the changing market environment, the asset-light approach is designed to prioritize partnership and collaboration in an interconnected business landscape.

Unlocking the Power of an Asset-light, Virtual Business Model for Global Captive Centers

Go back to 2020. Amid wear-your-mask and work remotely, virtual centers became the key source of operation. This has not only opened new boundaries for businesses but has also introduced a reason to adjust to evolving technological advancements through upskilling and reskilling. From an IT company to a healthcare giant, organizations across the globe accepted the idea of virtual presence, thereby transitioning the asset-light model from a mere defensive reaction to an undetermined economic situation to an actual business strategy for global businesses.

The most prominent advantage of harnessing this model is for the Global Captive Centers. Companies with an intent to expand globally are the first to utilize this model fully. While outsourcing labor, licensing, and resource sharing become easier, businesses striving to spread across national boundaries get a sense of financial freedom. This makes it easier for them to focus on their time and resources. Moreover, as the business is more tied to efforts than assets, the asset-light GCC tends to boost its bottom line through innovation.

Let’s check what makes the asset-light model a perfect business choice

The ability to scale

Global captive centers operating virtually are highly scalable. As business needs evolve, businesses increase the size of their business teams without any further complexities. This scalability in turn provides greater agility and responsiveness to market changes.

Environmental Benefits

Global captive centers following this business model can also get many environmental benefits. For instance, a virtual setting often results in a smaller carbon footprint compared to traditional, office-based operations, eventually contributing to sustainability goals.

Speed to Market

Virtual GCCs can be set up more quickly than their physical counterparts. This agility is crucial for organizations seeking to swiftly establish a presence in new markets.

It’s important to emphasize that the success of implementing an asset-light, virtual model for Global Captive Centers largely depends on factors like the industry type, the specific goals of the GCC, and how well the organization can manage virtual teams. To get the most out of this approach, it’s crucial to plan carefully, have the right technology setup, and implement effective talent management strategies.

Are you planning to set up your Global Captive Center but don’t know where to start? With its experience across industries, NLB Services empowers Global Captive Center to achieve business goals through robust end-to-end solutions.

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Harshal Goyal

Vice President, Talent Solutions- Staffing, RPO & Perm