GBSs are particularly effective when companies aim to reduce operational costs, centralise activities, standardise processes, increase service quality, mitigate regulatory and compliance risks, and focus teams' efforts on core business.
Organisations have experienced a significant increase in productivity in their operation after implementing GBS, resulting in a 30% reduction in back-office staff due to the implementation and a sixfold increase in productivity in transactional processes. The framework below outlines the main benefits of the GBS model.
Benefits of Global Business Services Implementation
GBS Management Model
The GBS is responsible for an end-to-end vision of the activities. GBS can centralise a wide range of processes, but the model primarily generates value by absorbing processes that are transactional in nature, can be standardised and have high volume. Common examples include purchase-to-payment processes, order-to-cash activities like billing and accounting, HR processes such as payroll and recruiting, and administrative and facilities management. GBSs can also effectively manage call centres and help desks.
The management model enhances control over regulatory compliance and mitigate risks, such as handling sensitive information. It ensures the adoption of company policies and standards.
However, GBS is not only about centralising processes. There is a specific governance and management model. This model involves establishing service level agreements (SLAs), defining a catalogue of offered services with aligned costing, and implementing a robust customer-oriented relationship model. This includes defining service channels, measuring customer satisfaction, and promoting continuous improvement.
