Driving innovation and growth in Retail with the reimagined Virtual Captive model

Driving innovation and growth in Retail with the reimagined Virtual Captive model
Posted : May 5th, 2022

It’s the mantra of Retailers today: Continuously improve the end customer experience, while also adapting existing systems to changing environments

As simple as that sounds, many retail institutions struggle because they’re dealing with gaps in technology and fragmented processes. They have a wealth of data. They recognize its potential. Yet they’re still unable to fully digitize, automate or identify the insights that will help build the business. And with so many technology choices, it’s difficult to know which path to follow.

Even when companies do invest in digital, they often prioritize front-end customer interactions. But if those efforts don’t align with back-office initiatives, retailers can’t deliver the singular experiences that can give them an edge. The good news: some retailers already have a resource at hand to change this scenario – the virtual captive model (also known as a shared service center or managed GIC). The Virtual Captive model has improved how retail institutions handle E-Commerce, CRM, finance, procurement, IT, and other functions. And what they may not fully realize is that Virtual Captives can also enhance the customer journey and enable significant business outcomes.

What will it take to make that happen?

Raise the stakes. Reimagine the GIC value proposition

Turn it into an innovation hub that explores and supports transformation across the business by:

  • Driving a culture of co-innovation
  • Running large-scale digital transformation programs
  • Using design thinking and process re-engineering to revolutionize the customer experience
  • Providing a single source of data
  • Defining the company’s analytics strategy
  • Collaborating with an ecosystem of technology partners

The reimagined Managed GIC provokes a fundamental shift toward an ethos of collaboration, encouraging teams to identify the best opportunities for business growth.

Systems Plus can help you establish this next generation of global business services. We can turn it into a true strategic asset and make innovation an ongoing reality.

Case Study:

Getting IT right for one of America’s largest discount footwear retailers

Comfort, style, fit, variety, and accessibility: people want all of these when they buy shoes, but at what price? The average shopper always wants to get more, but Pay Less! So, if you are a global footwear manufacturer with a large chain of retail outlets, you have to be able to keep your per unit costs low and focus on volumes to maintain a healthy top-line. And while you are busy streamlining your internal systems, you also have the added responsibility of debunking the myth that quality comes at a (high) price! Here’s how our Managed GIC model helped the customer get IT right while paying less!


An opaque offshore delivery model

  • Inadequate control over delivery
  • Lack of day to day visibility
  • Low cost transparency
  • Narrow talent skill-set


Poor value for money

  • Cumbersome operating model resulting in unnecessary overheads
  • Lack of business knowledge resulting in gaps in service delivery
  • Lack of control over operations leading to opportunity costs
  • Reduced manpower productivity resulting in slower reaction time to business concerns


Self-controlled captive unit in India


    • Better access to talent, increased productivity
    • Complete transparency on cost and operations
    • Better retention of business knowledge
    • Quicker resolutions when it came to business concerns


  • Legal and statutory hurdles
  • Capital intensive
  • Transfer pricing issues
  • Exit challenges

Getting IT right

A disruptive offshoring model with Systems+

  • A customer operated unit, but built and managed by us
  • Complete integration with the organization
  • Relevant talent pool hired in conjunction with the customer, but managed by us
  • Low CAPEX as the infrastructure is provided by us
  • Planning, governance and reporting

Pay Off

The Managed Captive advantage


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