Global Business Services Gaining Traction

By Dennis McCafferty  |  Posted 04-03-2014 Email

If you're not entirely familiar with the concept of a Global Business Services (GBS) model, there's a good chance you will be soon. GBS refers to a multi-functional operating model which integrates internal and retained business services with third parties, managing them with an enterprise-capability perspective. The goal is to enhance overall operational effectiveness and business functions. A great number of companies plan to transition to GBS over the next three years, according to survey research from HfS Research and KPMG, as the IT and business-processing outsourcing market is expected to reach more than $1 trillion in 2014 and continue to grow at more than 5 percent every year. "The expectations and reality of what GBS can achieve vary wildly," according to the HfS Research report, titled "The Global Business Services Industry Study." "Some believe it to be a way to drive additional labor arbitrage, while others define it as achieving a greater span of control to improve processes. Still, others look at GBS as a way to drive standardization and simplification in business-services functions." More than 400 global executives took part in the research. For more about the survey, click here.

Dennis McCafferty is a freelance writer for Baseline Magazine.


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