Product details

Anthem Inc was a leading healthcare insurance provider in the Blue Cross Blue Shield (BCBS) network. In October 2017, it approved the establishment of global capability centers (GCCs), called 'Legato', in India and the Philippines. By June 2021, the two Legato entities had ramped up their head count to over 15,000 full-time employees (FTEs). This number exceeded the initial approved business plan of a little over 3,000 FTEs. As a result, the parent organization accrued substantial cost savings. This also helped the company create a foundation to use low-cost internal talent to enable additional objectives. In 2021, Anthem established a new objective for Legato. As a cost center, Legato had firmly established itself in Anthem's value delivery chain, setting up several IT and business process practices. Anthem decided to use this capability by pursuing IT and business service revenue from other BCBS players in the US - essentially a profit and loss (P&L) role. This role brought up the following questions: Should the existing leaders' role be expanded to take on the additional responsibility of delivering to external customers? Should an entirely new division be established to take on this new P&L role? Or was there any other option to consider?