Accelerating Product Development

Over the years, the objective for product acceleration teams has changed from creating efficiency to value creation and excellence. The outsourcing model of product acceleration teams has evolved from offshore to captives to global in-house centres (GICs) to global capability centres (GCCs) to global centres of excellence (GCoE), as shown in the chart below:

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Identifying Value Creation Levers

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Evolution of product acceleration model with increased maturity of operation model

3. Role of GCoE in product acceleration

Time-to-market drives substantial value for enterprise software portfolio companies. To improve time-to-market, companies adopt accelerated product development strategies by compressing the product development cycle time. Product acceleration becomes critical for a software company whenever some or all the following happens:

1. Understanding the time-to-market premium

A product acceleration team is an external team of skilled individuals deployed to supplement the existing team to provide support in meeting delivery deadlines at times when workload is heavy. Product acceleration teams work as an embedded part of established teams and augment capabilities in development, governance or quality assurance and establish best practices. It is composed of people from diverse roles, such as developers, business analysts, project and product managers, quality assurance, etc. This results in a massive boost in development velocity, without compromising on quality. We’re seeing these teams are being used increasingly by organizations of various sizes.

2. Developing a product acceleration team — outsourcing to boost development velocity

Software companies are on the lookout for global talent hubs where they can build CoEs with complete software engineering teams that not only own and build products but can also be grown at scale. Most global companies prefer setting up a GCoE when their nature of work is strategic and needs:

Persona of GCoE in product leadership

Matured GCoE adopt product-led delivery models for product and application development to achieve quicker time-to-market. The organization is designed so that IT teams, software engineers and IT architects are aligned to product lines where individual product owners are responsible for creating product road-maps and new features in collaboration with business teams:

India continues to experience increased traction among global destinations for establishing GCoEs, growing at a rate of 9% Y-o-Y over the last two decades. Some important facts about the matured Indian GCoE ecosystem:

4. Benefit of GCoEs in India

\ ~140+ GCoEs have set-up their GCC centres in India between 2019 and 2021

Growth of GCoEs in India

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Matured GCoE are witnessing a convergence of skills required across industries. The shift to a product-centric approach has led to the creation of digital skillsets such as CX and industrial automation, UI/UX, AI/ML, Agile, DevOps, etc. that can be leveraged interchangeably across industries.

Skill and capability building for product leadership

To bridge the digital skills demand-supply gap, organizations are engaging with ecosystem partners such as start-ups, academia and service providers through a combination of models. With start-ups, GCoEs are exploring ecosystem outreach or accelerator programs. Similarly, universities are engaging in consulting, open research or infrastructure development. As GCoE mature, they frequently collaborate with services providers through innovative engagement models to build capability.

\ Frequently missed deadlines and extended project timescales \ Reduced product performance with respect to business goal \ Too many defects in production \ Poor adoption rate \ Multiple releases and subsequent rollbacks \ Staff burnouts

\ Better Control: GCoE allows more control over the quality of talent and deliverables \ Aligned Culture: GCoE allows building a culture which aligns with the company culture \ Drive Innovation: GCoE enables flexibility to drive innovation without putting business sensitive information at risk.

\ Product owner ensures that IT teams have a clear visibility of the business user requirements

\ Agile delivery combined with product line alignment helps in continuous delivery

\ Full Stack engineering teams take end-to-end ownership of the product, thus reducing quality issues and improving the time to market

As the GCoE matures across the digital technology stack, they increase the digital innovation agenda by building technology centres of excellence around areas such as AI, ML, IoT, analytics and Cloud computing.

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\ 64% of the GCoEs set up in India are headquartered in the USA

\ 31% of GCoEs have a presence in Bengaluru

\ The availability of digital talent, the maturity of the start-up and peer-GCC ecosystem are among the major drivers for choosing India

\ Majority of Indian GCoEs now own end-to-end solutions – from ideation to development, deployment, and maintenance – for both local and global products

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Skill and capability building for product leadership

Better Control:

\ GCoE allows more control over the quality of talent and deliverables

Aligned Culture:

\ GCoE allows building a culture which aligns with the company culture

Drive Innovation:

\ GCoE enables flexibility to drive innovation without putting business sensitive information at risk

Examples of how enterprise software portfolio companies are driving product acceleration through GCoEs:

Next steps

Private equity offerings

See how Persistent can help you drive transformational value within your portfolio companies

Learn More

Join a leadership roundtable

Register for an upcoming PE leadership virtual roundtable to discuss value creation strategies with other PEs and portfolio companies

Speak with an expert

Schedule a one-on-one discussion with our leaders who can help you identify value levers