CXOToday has engaged in an exclusive interview with Srividya Kannan, Founder and CEO, Avaali
- Avaali has coined the terminology and concept of ERH (Enterprise Resilience Hub). Could you explain how Enterprise Resilience Hubs (ERHs) differ from traditional GBS/GCCs and how they leverage automation, AI, and data analytics to enhance resilience, efficiency, and innovation?
Enterprise Resilience Hubs (ERHs) represent a paradigm shift from traditional Global Business Services (GBS) and Global Capability Centers (GCCs). While GBS and GCCs have traditionally focused on centralizing and optimizing business operations to deliver cost efficiency and operational synergies, ERHs evolve beyond these foundational principles. They incorporate advanced technologies such as automation, AI, and data analytics to enhance resilience, efficiency, and innovation in enterprise operations.
Key Differentiators of ERHs:
- Technological Transformation and Automation
Unlike traditional GBS or GCC models that often rely heavily on human-driven processes, ERHs leverage largely autonomous shared services across processes in functions such as Procure-to-Pay (P2P), Order-to-Cash (O2C), Record-to-Report (R2R), and compliance. Advanced automation eliminates repetitive tasks, enabling organizations to streamline operations while reducing dependency on extensive staffing or physical infrastructure. This shift transforms resource-intensive practices into agile, technology-led autonomous processes.
2. AI-Driven Decision Making
ERHs use AI to go beyond task execution. AI algorithms provide predictive insights, real-time analytics, and intelligent process optimization for mission-critical functions like P2P, O2C and F&A Processes. These capabilities empower organizations to respond proactively to disruptions, making data-backed decisions reinforcing operational resilience and business continuity.
3. Data Analytics for Innovation and Risk Mitigation
Embedding advanced data analytics into their core processes, ERHs enable enterprises to identify emerging trends, monitor risks, and uncover innovation opportunities. Decision-makers gain a holistic view of operational data, driving strategic adjustments that align with dynamic market conditions.
4. Scalability and Flexibility
Traditional GBS and GCCs often require significant investments in real estate, workforce, and infrastructure to scale. ERHs, on the other hand, offer rapid scalability through autonomous agents tailored for diverse operational needs. These agents can be replicated across geographies and functions without the constraints of physical or resource limitations, allowing enterprises to adapt quickly to global business demands.
5. More Than Cost Optimization
Traditional GBS and GCCs are often viewed as tools to centralize operations and reduce costs. ERHs, however, are strategic enablers. They optimise costs and help enterprises achieve broader business objectives, such as fostering innovation, mitigating risk, and ensuring long-term resilience.
By building on India’s technological expertise and leveraging a skilled workforce, ERHs position themselves as transformation engines capable of reshaping how businesses operate in a volatile and competitive environment. They redefine what it means to be efficient, resilient, and innovative in an era dominated by digital transformation. Not just a cost-optimizing solution, ERHs empower businesses to unlock new growth opportunities, making them a strategic asset for forward-thinking organizations.
By prioritizing resilience and innovation while leveraging cutting-edge technologies, ERHs ensure that enterprises are not just adapting to change but are prepared to thrive in dynamic markets.
- India is emerging as a key player in the ERH landscape. What makes India uniquely positioned to lead this shift, and how do factors like its tech talent, infrastructure, and government policies contribute to this advantage? Also, which Indian cities are offering world-class infrastructure for setting up ERHs?
India is rapidly establishing itself as a pivotal player in the global Enterprise Resilience Hub (ERH) landscape. With its unparalleled strengths in technology expertise, deep functional knowledge, robust infrastructure, and supportive government policies, the country is uniquely positioned to lead the shift toward building resilient, innovative, and scalable business solutions.
India is home to a vast pool of highly skilled technology professionals, well-versed in advanced areas such as artificial intelligence, machine learning, data science, and automation—key enablers of modern ERHs. Beyond technical expertise, the market boasts professionals with multifaceted skills across critical business processes, such as Procure-to-Pay (P2P), Order-to-Cash (O2C), and Finance & Accounting (F&A), making India an all-encompassing talent hub.
What truly sets Indian talent apart is its ability to combine technical expertise with a strong understanding of compliance frameworks, enabling organizations to operate with resilience and agility across geographies.
India’s ability to cater to domain-specific needs is another pillar of its ERH prominence. Functional expertise in industries such as banking, financial services, healthcare, engineering, and technology ensures that Indian ERHs deliver high-value solutions tailored to precise business requirements. For instance financial services ERHs leverage India’s talent to drive compliance and operational excellence.
Healthcare-focused hubs utilize India’s data analytics expertise to enhance patient care, streamline operations, and improve outcomes. This blend of technical and operational depth allows companies to go beyond cost optimization and create strategic value.
India’s robust digital infrastructure underpins its appeal as an ERH leader. The country boasts high-speed connectivity, widespread cloud adoption, and cutting-edge data centers that ensure seamless operations and business continuity for multinational corporations.
Cities such as Bengaluru, Hyderabad, Chennai, Pune, and Gurugram provide innovation hubs and scalable office spaces tailored to various business needs. They also have proximity to world class engineering institutions ensuring a steady pipeline of talent. We also have a very vibrant start-up ecosystem that foster innovation and collaboration. While metropolitan cities are the current anchors of India’s ERH growth, the next wave of transformation lies in tier-2 and tier-3 cities. Government incentives, improving Internet penetration, and growing local talent pools are making cities such as Jaipur, Kochi, and Indore increasingly viable for enterprise-scale operations. This geographic diversification ensures cost-efficient setups while expanding access to a fresh pool of talent.
The Indian government’s proactive policies further enhance the country’s ERH appeal. Special Economic Zones (SEZs) and Software Technology Parks (STPs) offer tax exemptions, customs benefits, duty-free imports, and simplified compliance, reducing operational costs. Additionally, 100% Foreign Direct Investment (FDI) in sectors like IT and financial services promotes seamless expansion.
India’s dominance in the ERH space is not coincidental—it’s a result of its ability to integrate cutting-edge technology with deep operational insights. This combination, supported by great infrastructure and policy-driven incentives, makes India an unmatched destination for organizations looking to future-proof their global operations.
For enterprises seeking scalable, resilient, and innovation-driven solutions, India’s dynamic ERH ecosystem stands ready to deliver. With its growing advantages, India is not just a participant in the global ERH race—it is shaping the very future of enterprise resilience.
- With increasing global competition, how is India positioning itself against regions like the US, Europe, and the Middle East in attracting large enterprises to set up their Global Capability Centers (GCCs), especially following McDonald’s announcement of its GCC in Hyderabad? What makes India a more attractive destination?
India continues to solidify its position as the global hub for Global Capability Centers (GCCs) by leveraging its unrivaled talent pool, advanced technological capabilities, and cost-effective solutions. The recent decision by McDonald’s to establish its GCC in Hyderabad—over other global locations—underscores India’s growing appeal. This move highlights the country’s rich talent pool, world-class infrastructure, and favorable business climate, setting a strong precedent for other multinational enterprises.
India is home to one of the largest and most skilled tech workforces globally, producing millions of STEM graduates annually. This abundant talent pool is not only highly competent in emerging technologies like artificial intelligence, machine learning, data analytics, and autonomous operations but also adept at delivering cutting-edge solutions that drive efficiencies.
India offers an ideal combination for enterprises concerned with balancing operational efficiency and cost. Its ability to operationalize Enterprise Resource Hubs (ERHs) and deploy autonomous operational models in record time ensures lower setup and operational costs, solidifying its appeal to businesses looking for scale and agility.
India’s ecosystem has a proven track record of developing and maintaining GCCs that not only deliver cost benefits but also serve as innovation hubs for global transformation. The focus on digitization and hyperautomation ensures that GCCs in India evolve from cost-effective operational hubs to strategic centers of excellence driving global enterprises forward.
Moreover, India’s appeal extends to its strategic geographical positioning and cultural compatibility, mainly with Middle Eastern markets. The proximity, with travel times ranging from four to seven hours, alongside a shared cultural ethos, makes India an ideal partner for organisations looking to leverage GBS for their operational needs.
For businesses aiming to lower operational costs, accelerate their digital transformation journeys, and leverage world-class technology talent, India is the definitive choice. McDonald’s move sets a compelling precedent, and it is only the beginning of what will undoubtedly be a continued migration of global enterprises to India’s shores. Our comprehensive ecosystem not only supports but also enhances the operations of GBS, making it a top choice for companies worldwide seeking to innovate and excel in their services.
- How is Avaali contributing to the evolution of ERHs? Could you share some success stories or case studies where your solutions have significantly improved resilience and business performance?
Avaali’s contributions to ERHs extend beyond short-term fixes. By fostering innovation and building frameworks aligned with long-term business goals, Avaali ensures sustained competitive advantages for its clients. Their approach to digital transformation aligns resilience with performance, allowing organizations to thrive even in the most challenging environments.
Developing Enterprise Resilience Hubs (ERHs) is pivotal in fostering agility, ensuring operational continuity, and driving long-term business performance. Avaali equips enterprises to establish ERHs quickly and effectively by leveraging cutting-edge technology. Our solutions deliver seamless, automated, and autonomous operations, enabling organizations to identify critical business processes, integrate them into the ERH, and optimize workflows with minimal manual intervention—all while ensuring rapid and efficient deployment.
Avaali offers automation solutions tailored to streamline operational processes, including Sourcing, Supplier Experience, Cash Application, and several F&A processes such as Reconciliations. These tools empower businesses to establish robust frameworks that enhance decision-making, mitigate risks, and ensure operational continuity. By addressing challenges across key functions—such as finance, procure-to-pay, legal and contracts management, and Master Data governance—Avaali ensures organizations are prepared to handle both anticipated and unforeseen disruptions.
One of our flagship solutions, Velocious, focuses on Sourcing and Supplier Experience. Designed with built-in compliance features, it seamlessly adapts to evolving government regulations around e-invoicing and vendor processes. This capability allows ERHs to implement processes rapidly, mitigate legal risks proactively, and avoid penalties, ensuring smooth operations. Additionally, Avaali integrates intelligent automation powered by artificial intelligence (AI) and machine learning (ML) to streamline workflows further and enhance efficiency. Through hyperautomation initiatives, our solutions minimize manual intervention, boost processing speed, and ensure accuracy. For instance, our AcuRec solution revolutionizes payment reconciliation, automates supplier onboarding, and enhances the accuracy of financial processes, underscoring our expertise in intelligent process automation.
Avaali’s data-driven approach empowers ERHs to make informed, proactive decisions, positioning businesses for greater resilience and readiness. Our collaboration with a leading FMCG conglomerate in East Africa is a testament to our success. We helped establish their captive ERH, significantly improving key processes such as Accounts Payable (AP), Accounts Receivable (AR), Finance (FI), Supplier Onboarding, and Master Data Management. This initiative resulted in a remarkable reduction in process cycle times—over 50% overall, with Master Data processes reduced by an impressive 70%. These advancements delivered enhanced visibility, stronger governance, and reduced operational costs, enabling the company to operate more efficiently and build lasting resilience.
Similarly, we partnered with a major pharmaceutical company to establish a Global Business Services (GBS) framework. This resulted in superior cycle time reductions of over 60% and significant cost savings in supplier engagement and Accounts Payable processes. Avaali has delivered over 150 successful engagements for large enterprises across India, the Middle East, and Europe, helping organizations build resilience and efficiency through advanced GBS operations.
With our expertise in intelligent automation and enterprise resilience, Avaali empowers businesses to thrive in an ever-changing landscape. We ensure they are equipped to meet challenges head-on while embracing growth opportunities.
- Looking ahead, how do you see the future of ERHs evolving over the next 5-10 years, and what advice would you offer to global enterprises considering establishing ERHs in India?
Enterprise Resilience Hubs (ERHs) are on the verge of a revolutionary evolution. Over the next 5-10 years, they are slated to play an even more critical role for global businesses. By leveraging advanced technologies like automation, artificial intelligence (AI), and enhanced governance mechanisms, ERHs will transform how enterprises achieve operational efficiency, mitigate risks, and adapt to unforeseen disruptions.
Automation will take center stage in ERH operations. Repetitive, manual tasks will be replaced with efficient automated workflows, drastically reducing operational bottlenecks and human error. Governance will become a fundamental pillar of ERH frameworks. Combining AI and automation will empower businesses to anticipate and address risks proactively. ERHs will act as command centers, streamlining processes and reducing the time needed to respond to disruptions. This proactive approach will significantly boost operational resilience and improve business continuity during crises. With businesses facing increasing regulatory complexities, ERHs will provide robust compliance adherence, monitoring and reporting solutions. With operational efficiency as a priority, ERHs will help businesses achieve significant cost savings. Streamlined processes, smarter supplier collaboration, and reduced downtime will ensure enterprises remain agile while minimizing expenses.
For global enterprises considering establishing ERHs in India, the opportunity is compelling. India offers a cost-effective, innovation-driven environment backed by a digitally skilled workforce, robust infrastructure, and business-friendly government policies. To capitalize on this, enterprises should focus on strategic partnerships with technology leaders like Avaali, who specialize in delivering operational cost reduction, governance, and resilience through cutting-edge solutions.
