Global Business Services Gaining Traction

 
 
By Dennis McCafferty  |  Posted 04-03-2014 Email Print this article Print
 
 
 
 
 
 
 
 

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.

 
 
 
  • Determined Direction

    Nearly one-half of organizations aspire to move to a GBS model over the next three years.
    Determined Direction
  • Top Priorities for Organizations With Shared Services and/or Outsourcing Programs

    Reduce cost structure of operations: 43%, Improve quality of operational data to drive management decisions: 38%, Make better use of automation: 37%
    Top Priorities for Organizations With Shared Services and/or Outsourcing Programs
  • Top Obstacles for GBS

    Major change management requirements: 48%, Resistance from business units: 40%, Disruption to internal power structure: 39%, Senior management not convinced of business benefits: 29%
    Top Obstacles for GBS
  • Change Agents

    64% of survey respondents say a stronger commitment from the C-suite would help drive GBS, and 51% say a refocusing of operations mindsets from cost to value would help.
    Change Agents
  • Tech Support

    Nearly one-half say that better IT systems are required to build a fluid, effective and centralized GBS governance framework.
    Tech Support
  • Uninspired Effort

    39% do not feel that their organization has the right skills to maximize analytics opportunities, and 52% say their organization isn't investing heavily into analytics.
    Uninspired Effort
  • Best Practices for GBS: Create a Multifunctional Scope

    Combine all enterprise-wide processes into one multifunctional platform, so you eliminate confusion caused with services being provided differently in different parts of the organization. Then leverage expertise and assets across the platform.
    Best Practices for GBS: Create a Multifunctional Scope
  • Best Practices for GBS: Run GBS as a Business, Not a Cost Center

    It's not all about achieving the lowest cost per transaction. Treat business units like external customers to invest in ROI-producing talent, technology, quality and innovation.
    Best Practices for GBS: Run GBS as a Business, Not a Cost Center
  • Best Practices for GBS: Integrate the Services Supply Chain

    You can't take advantage of a transformation opportunity if there are walls separating you, your customers and vendors. Integration will open up valuable information and data to drive business decisions.
    Best Practices for GBS: Integrate the Services Supply Chain
  • Best Practices for GBS: Align Analytics With GBS Efforts

    By aligning analytics with GBS efforts, you'll take advantage of data already existing within your organization to gain value-adding insights about customers, suppliers and competitors.
    Best Practices for GBS: Align Analytics With GBS Efforts
 
 
 
 
 
Dennis McCafferty is a freelance writer for Baseline Magazine.

 
 
 
 
 
 

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