
New beginning for global business services value generation
Explore this in-depth guide on transitioning from legacy GBS to new-gen models, integrating ESPs, and achieving transformative business outcomes.
Changes in the cost-benefit equation—driven by new technology and an evolving labor market—are altering the way clients think about how and where they deliver services. As companies rethink what's core to their businesses, they are focusing more on the changing technology, data and talent landscape. This means automation and upskilling play bigger roles in the modern framework for Global Business Services (GBS) or operating model solutions for non-core and core activities.
As organizations have matured, we have seen a move from siloed functional shared services or outsourcing, to today’s more holistic end-to-end process lifecycle. The rise of digitalization enables GBS to provide value-added benefits that are as important as lower costs. Centers can incorporate automation, visualization, analytics, and other digital tools to develop more effective ways to support the business units. Where technology can automate low-complexity activities, there is an opportunity to retrain and refocus your people on more value added areas. GBS has become a business partner, rather than simply a transactional processing center.
But, if you are to bring your strategy to life and provide a good return on your investment, you’ll need to stay focused on your shared values and purpose, keeping your people and culture at the heart of changes.
“At the end of the day, it comes down to three key concepts: partnering to bring the right value proposition; upskilling to focus on more value-added areas; and flexibility that enhances the employee experience.”
Our team is uniquely positioned to work hand in hand with clients to support their Global Business Services journey by bringing operational, functional and technical expertise to each transformation, from strategy through execution.
The following are key capabilities to accelerate your organization’s service delivery transformation at every phase. Your approach will depend on whether you plan to outsource to an external party or create captive shared services within a lower-cost area. Here’s a closer look:
Phase 1
Here’s where you’ll need to assess the right strategic approach, which will involve collecting and validating current time and cost data to help build your business case and guide your decision-making. Evaluate what operating models work best for your organization, including alternatives, such as automation, captive shared services, outsourcing or a hybrid of these options.
Trust in GBS organizations is growing. Parent companies are increasingly entrusting GBS with more complex tasks, which is why transactional service centers are often supplemented by specialized centers of excellence (CoEs). Originally established as competence centers to improve processes and consolidate process knowledge, we are now seeing companies using CoEs as a driving force for the introduction of new business models, the initiation and development of new products and service offerings and as a spearhead for general innovation.
This study is the seventh in a series of publications produced every two years. The survey on which the study is based was conducted from March to August 2023, and included companies throughout the world and from a wide variety of industries. The results cover more than 300 shared service centers, enabling us to provide a comprehensive overview of the status quo, current developments, existing challenges and upcoming challenges. The study also covers relevant topics like further development regarding location strategies, GBS as digital pioneers, how outsourcing remains rare and the search for qualified staff.
Explore this in-depth guide on transitioning from legacy GBS to new-gen models, integrating ESPs, and achieving transformative business outcomes.
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We would love for you to join us for the inaugural event of Women Advancing Business Services. This event will kick off an ongoing network of women leaders in Global Business Services and Technology who are driving and influencing global business services transformation. The first event will be hosted June 8th and...