Global Business Services: Beyond the Hybrid Model

Global Business Services (GBS) has transitioned from future hope to current reality; in a 2014 SSON survey, over 30% of respondents defined their shared services model as GBS because they have global process ownership beyond regional/functional classifications. GBS is the next iteration of integrated service delivery – a step beyond the hybrid sourcing model, where SSOs and service providers work closely but still operate in silos. In the GBS model, SSOs and service providers integrate service delivery by developing business-aligned strategies around sourcing model, location decisions, talent management, scope of work, and service delivery management. A critical element of GBS is the governance layer that can interact with the enterprise as well as the delivery organization to manage relationships, measure quality, and manage change. The main attraction of GBS is the benefits it generates beyond cost savings, including agility, flexibility, and the ability to anticipate and quickly respond to internal/external changes. A couple of key components make GBS different from traditional sourcing models: Delivery scope is not limited to transactional, non-core functions, but strives for a multi-function strategy that includes business-crutial functions The GBS model embraces innovation, end-to-end integration, and a truly global perspective made possible through the engagement of C-level executives The key to successful GBS implementation lies in establishing a strong foundation that includes the following areas: Sourcing strategy Business case Strategic vendor management Research and intelligence Demand management On top of that foundation, a successful GBS will address key components, essentially the pillars that support the strategy: Sourcing model Location strategy Talent model Scope of work/functions Service delivery And finally, atop the pillars is the governance layer, which interacts with the enterprise and delivery organization to manage relationships, measure quality/performance, and manage change. Organization design Contract administration and management Sourcing and negotiation Financial, risk, and relationship management Reporting and compliance Change management and transitions Performance management Source: Everest Group Research GBS is complicated to implement and manage, given the involvement of multiple stakeholders, geographies, business units, and functions. Organizations must beware of the likely pitfalls, including: Lack of adequate scale/scope Limited change management capabilities Lack of leadership focus, which can limit the benefits offered by GBS However, with the right structure in place, organizations find that GBS is truly their taking service delivery to the next level. [eventpdf] For more details on the GBS model and GBS implementation: Global Business Services - Unlock Hidden Value From Your Shared Services "AND" Outsourcing Models

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