Working in a Profit Centre versus a Cost Centre
TL;DR: Working in a cost centre like a GCC (Global Capability Centre) or corporate backoffice can be more relaxed but if you want to make an impact, then working where software development is at the front-line is where it’s at
As an IT professional, you need to ask yourself a very fundamental question. Do I want to be part of the profit engine of an organization and be involved with the team which is leading it forwards, or do I want to prioritize personal stability and resign myself to being considered just a necessary cost on the balance sheet?
The Indian IT world is largely divided into two major sectors. You have the companies where software development is front and centre and is the main focus of the organization and then you have the IT back offices which act as capability centres for the MNC mothership. One is a company where the IT work brings in the money and the other is a place where the IT work is just another cost centre.
Product development companies like Shopify or Atlassian would be examples of the former, while the GCCs (Global Capability Centres) of companies like Wallmart, Target and GE would be examples of the latter.
In the case of firms where software development is a profit centre, the development team is the star of the show. They get the most visibility, the most freedom, the most agency and dare I say it, the highest salaries. When you’re working in a cost centre, then that’s what you are; a cost. The focus is on reducing your budget and every request for any outlay is scrutinized intensely. The work is circumscribed and your ability to affect change in the organization is limited. You’re expected to quietly follow orders rather than affect change.
On the positive side, back office positions are often more quietly stable that profit centre ones. The tech stack is usually frozen in place (if it ain’t broken, don’t fix it) and the work/life balance can be quite good. If you’re one of the few technical experts in the company’s legacy codebase, then the job security is often excellent! The chances of growing within the organization are also good, since there is a clear track upwards and fewer competitors for those positions.
So which is the better option? Like most things in life, it depends. Different personalities are attracted to different environments. And the same person may feel drawn to different places depending where he is in his professional journey. A more fast-paced, exciting surroundings may attract at the start of one’s career, while a more stable situation may be more desirable later on in life. It’s a very individual preference which will vary over time; there is no right answer.
If you’re lucky, you might find a hybrid environment. Working in a COE (Centre of Excellence) or with a Product team within a GCC might offer you just the right mix of stability and fast paced action. A high-performing team within a GCC can still gain immense visibility. Conversely, Product companies can have GCC’s to support their offerings.
There is no one size fits all answer here. You will need to take a close look at your own situation and make your decision.