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Global business services (GBS) is the next step in the shared services evolution.
Companies that have set up ‘Global Business Services’ have significantly boosted their support functions performance, optimizing the cost-quality trade off through efficiency improvements and a clear shift towards a strong and compelling value proposition to the business.
They can, now, be considered full-fledged partners of business operations, and not just providers of services. This improved cash flow can help with funding the cost of transformation whilst driving ongoing innovation and sustainable performance improvements to its customers.
At last count, more than 1,000 multinational companies have moved to this model, now commonly referred to as Global Business Services (GBS).
Features of a true GBS Organization:
Organizing a single function, such as Human Resources or Finance, under a single global leader located in one country requires navigating thorny issues around local labor laws, customs, and national pride—not to mention the political battles of centralizing functional control. None of this is for the faint-hearted.
In spite of these challenges, a growing number of multinational companies continue to move to the GBS model. Similarly, those who have adopted a GBS model continue to add support services under their GBS umbrella.
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