July 14, 2017

Does the global business services model still matter?

Centralizing multiple functions under a GBS model will save companies money. For many customers of GBS, however, this benefit is largely invisible. What matters more to them, particularly in a digital-business era, is quality and speed.

Over the past two decades, companies in various industries have pursued shared-services opportunities by deploying a global business services (GBS) model. GBS groups focus on managing many of the general and administrative tasks that happen on the back end of a transaction, leaving the business units more time to focus on customer- or product-specific activities.

However, for a number of reasons, many companies are reexamining—and, in some cases, backing away from—their commitment to GBS. Some argue that the model has introduced greater organizational complexity but not necessarily better performance.

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