Disrupting Payroll from Within: The Untapped Potential of GCCs
Bharath M Sundaram, Vice President, Everest Group, 0
Global Capability Centers (GCCs) are playing a pivotal role in reshaping global enterprise operations, especially in today’s fast-evolving business environment. By providing access to advanced skillsets, cutting-edge technology expertise, deep business acumen, and streamlined operational efficiencies, GCCs empower organizations to compete on a global scale. Companies that embrace the GCC model have the opportunity to unlock new avenues for innovation, scalability, and sustained growth.
As central hubs within enterprises, GCCs hold immense potential to revolutionize payroll operations by streamlining centralized payroll systems, collaborating with regional specialists, ensuring compliance, and staying ahead of evolving labor and tax regulations.
In an exclusive interview with CEO Insights, Bharath M Sundaram, Vice President, Everest Group, shares his insights on the challenges facing the payroll industry and how GCCs are driving transformation through technology and strategic innovation. This conversation took place at a special event hosted by Ramco Systems in partnership with Deloitte and Everest Group, highlighting the game-changing role of GCCs in redefining HR and payroll operations.
How do you make sure payroll follows different tax and labor laws in different countries while staying accurate and efficient?
One of the key value propositions of GCCs is driving efficiency, standardization, and process excellence, which are fundamentals that align perfectly with payroll operations. The real challenge lies in navigating diverse tax and labor laws across multiple countries. This can be addressed by developing in-house specialists within GCCs who are equipped to manage these complexities.
For a global enterprise, understanding intricate regional tax laws can be overwhelming. However, leveraging local expertise within GCCs provides a strategic advantage. Currently, GCCs are rethinking payroll transformation, shifting towards centralization and standardization instead of managing multiple fragmented teams across different locations. This transformation is delicate, as it directly impacts employee experience and the organization’s reputation. Therefore, its execution must be precise, well-planned, and strategically implemented.
What new technologies or trends in payroll and HR software are you most excited about, and how do you plan to use them?
AI is becoming inevitable in the industry, but it’s important to recognize that it’s not a one-size-fits-all solution, especially generative AI. While AI will play a role, the real shift in payroll will be towards advanced analytics,
offering predictive and even prescriptive insights through dashboards and reporting. One area with significant potential for improvement is employee experience, given the diverse and often fragmented ways payroll is managed across organizations.
Any technology that enhances employee experience, such as AI-driven tools providing real-time insights while maintaining security and compliance, will be game-changing. The focus should be on leveraging these innovations to streamline processes, improve transparency, and create a more seamless payroll experience.
How do you ensure payroll and HR technology supports the company's overall business strategy?
HR’s role is shifting from execution to enablement. A decade ago, the primary focus was direct employee engagement, but today, HR plays a crucial role in empowering businesses by leveraging the right tools, technologies, and resources to drive success. Payroll, along with learning and development, is integral to enhancing employee experience and strengthening employer branding in the local talent market. The effectiveness of these areas will depend on the evolving mindset, strategic vision, and aspirations of HR organizations.
How do you keep yourself up to date with the ongoing industry trends?
I have the privilege of engaging with a diverse network, including payroll vendors, practitioners, and industry analysts. Staying informed requires active participation, including attending webinars, following company presentations, and keeping a pulse on the latest market trends. This continuous learning helps us formulate hypotheses, analyze industry shifts, and assess whether payroll should align with or take insights from other functions, such as learning and development or accounting. Given the nature of our roles, this approach positions us well to stay ahead of industry changes.
Define your leadership approach. What are the guidelines or methodologies you follow to lead your team?
I foster open communication while maintaining the right balance of guidance and accountability. It's essential that our teams feel confident and aligned, which requires a steady equilibrium. My leadership style leans toward flexibility, allowing individuals the space to learn from their mistakes. They have the right to make errors and grow, but with that comes the responsibility to uphold trust and deliver high performance.
What are the future opportunities you look forward to in the payroll industry?
The payroll industry holds immense potential for transformation. Unlike functions such as accounting, payroll has traditionally been viewed as a sensitive area, often making it a lower priority for GCC-led transformation initiatives. However, as a central group within enterprises, GCCs have a unique opportunity to drive meaningful change in Global Payroll. I see this as an ongoing journey, rich with learning and continuous evolution.
What piece of advice would you like to pass on to the upcoming leaders?
Leaders should be bold, committed, and truthful to themselves. There is no one right way or path. It is about being in that headspace where you always keep trying and keep aspiring for future opportunities.
Any technology that enhances employee experience, such as AI-driven tools providing real-time insights while maintaining security and compliance, will be game-changing. The focus should be on leveraging these innovations to streamline processes, improve transparency, and create a more seamless payroll experience.
How do you ensure payroll and HR technology supports the company's overall business strategy?
HR’s role is shifting from execution to enablement. A decade ago, the primary focus was direct employee engagement, but today, HR plays a crucial role in empowering businesses by leveraging the right tools, technologies, and resources to drive success. Payroll, along with learning and development, is integral to enhancing employee experience and strengthening employer branding in the local talent market. The effectiveness of these areas will depend on the evolving mindset, strategic vision, and aspirations of HR organizations.
Unlike functions such as accounting, payroll has traditionally been viewed as a sensitive area, often making it a lower priority for GCC-led transformation initiatives
How do you keep yourself up to date with the ongoing industry trends?
I have the privilege of engaging with a diverse network, including payroll vendors, practitioners, and industry analysts. Staying informed requires active participation, including attending webinars, following company presentations, and keeping a pulse on the latest market trends. This continuous learning helps us formulate hypotheses, analyze industry shifts, and assess whether payroll should align with or take insights from other functions, such as learning and development or accounting. Given the nature of our roles, this approach positions us well to stay ahead of industry changes.
Define your leadership approach. What are the guidelines or methodologies you follow to lead your team?
I foster open communication while maintaining the right balance of guidance and accountability. It's essential that our teams feel confident and aligned, which requires a steady equilibrium. My leadership style leans toward flexibility, allowing individuals the space to learn from their mistakes. They have the right to make errors and grow, but with that comes the responsibility to uphold trust and deliver high performance.
What are the future opportunities you look forward to in the payroll industry?
The payroll industry holds immense potential for transformation. Unlike functions such as accounting, payroll has traditionally been viewed as a sensitive area, often making it a lower priority for GCC-led transformation initiatives. However, as a central group within enterprises, GCCs have a unique opportunity to drive meaningful change in Global Payroll. I see this as an ongoing journey, rich with learning and continuous evolution.
What piece of advice would you like to pass on to the upcoming leaders?
Leaders should be bold, committed, and truthful to themselves. There is no one right way or path. It is about being in that headspace where you always keep trying and keep aspiring for future opportunities.