Global Business Services vs Shared Services:

Shared Services initially focused on consolidating back-office functions such as finance, HR and IT within a single organisation to streamline processes and cut costs. This model has now evolved into Global Business Services, a more integrated and holistic approach that encompasses end-to-end processes across multiple functions and geographies, leveraging global talent and resources.

Now, GBS represents a strategic evolution from shared services, aiming not only for cost efficiency but also for driving business value through innovation, agility and enhanced service delivery. By integrating advanced technologies such as automation, artificial intelligence and data analytics, GBS units are transforming from transactional hubs into strategic partners that support business growth and agility.

Speaker Insights from SSOW Europe 2024:

At our 24th Annual Shared Services & Outsourcing Week in Portugal, we asked our esteemed speaker community about their thoughts and insights on what they think the future of Shared Services and GBS looks like. Here is what they had to say…

“I think it is a really exciting time to be in shared services, but I always think it is an exciting time. I think this time specifically, as we are at the cutting edge of huge changes both geo-politically and technologically, GBS continues to be increasingly relevant, and for me, it comes back to how do we ensure that we are delivering value for the companies in which we operate. How are these company agendas being supported by the GBS agendas and how do we make sure that we are delivering for our company.” – Co-Chair, Jackie Crockford, Vice President, Global Business Services, AstraZeneca

“There’s lots of talk around AI, personally I think that’s in the future, we are not quite ready for that in the back office of the government yet. There’s a lot simpler automation we have to do first and linking up our data systems much more before we can exploit AI. But we are dabbling, we are still using a few chatbots, but I think that is where we want to get to. We just want to take people out of those systems which are very admin-based at the moment and free them up to do other things.” – Matthew McKeown, Deputy Director, Shared Services for Government Cabinet Office

“The future overall is going to be next-generation GBS and the next wave of GBS. We are all going to hear that buzzword because right now, GBS is the core of innovation and is going to continue to be that. So, technology, Gen AI and everything related to this spectrum is going to grow within GBS as a hub of innovation.” – Cristina Duta, Director of Intelligent Automation, AECOM

“I don’t think this is all about Gen AI. This is about adopting new uprooting models that deliver value to the business. Gen AI is not a headline; it is a tool. So, I’m looking forward to next year to see whether the bloom is off the rose.” – Deborah Kops, Principle, Sourcing Change

“My thoughts on this are more around the people. I know there is a lot of talk about AI technology, but I think that people are still going to be very, very important. So, I am not afraid of AI taking our jobs, I think AI, or any technology will change our jobs and GBS needs to be more agile on this journey. So, we started with ERP implementation, and then RPA came in again saying that it could take away our jobs, so we had to be very agile and adjust our jobs to RPA. Then what is good about Gen AI at this stage is that GBS can evolve with the technology and align our operating models and the people skills to support that. So, I think the technology will almost be like an everyday part of the new job in the future and that is where I see the evolution of people skills.” – Lizzy Bowling, Head of Global Performance Management, GBS, Astellas Europe

“The future of GFS would be moving more towards automation, AI and Gen AI. They are not just buzzwords, but we are working through a digital upscaling programme to equip our finance team to be the workforce of the future. In doing that, we will provide them with the tools, but for them to have actionable insights for value-added oversights to bring forward to the business and for them to be true business partners I see us as the role model of a truly global function, delivering world-class quality, efficiency and reliability. I would couple that with looking into the future that of course, there is a cost-play but in addition to that is to look at the finance operating model and the location agnostic roles coming into GFS supporting the business and for them to provide value-add to the customer whilst we get on with the business of supporting AstraZeneca overall.” – Osman Mia, VP & COO, Global Finance Services, AstraZeneca

“The future is evolving, so to be honest, I don’t know the answer to this. But I know the evolution that is happening, we started with shared services, and then we went to process ownership, then we said technology infusion and now we are getting into the first part of the organisation which is going to use Generative AI or the newer technologies. So, what’s going to happen next is anyone’s guess. But because this is a younger part of the organisation and it is a lot more flexible, I think a lot of innovation is going to happen in GBS, and that is what I am excited about.” – Anil Yadav, Senior Vice President & Head of Global Business Services, Philips

“The future of shared services and GBS is about building an intelligent business practice. This is about driving data science analytics and really understanding your data. You know it is a heinous crime when you’re sitting on all this data in GBS, and you don’t do anything about it. So, with data being the new oil, how do you adapt and how do you transform that data and make sure you create decisions for the business and help the business to take those decisions? That is the transformative intelligent GBS practice – that is the future.” – Sumit Mitra, Chief Executive Officer, TESCO Global Business Services

Conclusion:

The future of Shared Services and Global Business Services is incredibly bright, driven by technological advancements, evolving workforce dynamics and a strategic focus on value creation. By embracing these changes, organisations can transform their Shared Services and GBS into agile, innovative and customer-centric entities that support long-term business success.

As we move forward, the integration of advanced technologies, the development of new skills and the adoption of strategic imperatives will come to define the next era of Shared Services and GBS. At SSOW Europe 2024, we explored crucial insights on elevating the people strategy, infusing purpose and trust, navigating the realms of AI and Generative AI and fortifying sustainability as a core value.

Check out the event guide for a look at everything that happened onsite. And stay tuned! 2025 is already in motion and we can’t wait to share the next updates with our SSOW Community.