GBS Lacking in Integrated IT Services and Governance [Report]

KPMG has just released its 2Q 2014 "pulse survey" report, which interprets market conditions for shared servers outsourcing practitioners. Integration ranks highly, as practitioners acknowledge that improving the underlying capability of IT is key to successful global business services. The report confirms that global business services are being driven increasingly by the need to deliver meaningful and differentiated business benefits other than cost. For example companies are looking for more efficient merger and acquisition activity and integration, or the ability to leverage data and analytics to drive business value. [eventpdf] Most practitioners are focusing on governance processes and capabilities to improve service delivery, which, though always high on practitioners’ lists, becomes more difficult to manage successfully as GBS becomes more complex. The second most commonly cited factor to improve performance is process improvement and reengineering. Conversely, despite frequent headlines there is very little evidence here to support a shift from outsourcing to insourcing, or from offshoring to nearshoring. The top takeaways are: Organizations need to clarify the benefits of GBS beyond cost and recognize the challenges associated with achieving these benefits. A key enabler here is an IT model designed specifically to support GBS operations. There are still too many weaknesses in change management capabilities when supporting GBS expansion. Focusing on governance is one step in the right direction. Standardization of ERP systems is a key enabler of GBS integration. Where one ERP system is not possible, working towards a common ERP architecture across multiple instances of ERP will provide GBS with at least some advantage. With IT a recognized enabler of GBS success, it's time for the IT group to benchmark their "GBS IT operations" against best practices. Frameworks such as enterprise services management support this trend. IT holds the key to innovation, which drives GBS operational advances and success. There is still very little activity in this area, however. Organizations should be funding innovative solutions across functions, geographies, and business units. Analytics is a good area to start, as its capability is still generally weak. Read the whole report here

GBS Lacking in Integrated IT Services and Governance [Report]

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