Benchmarking Excellence: Insights from the Top 20 Most Admired GBS

At the SSOW session, industry leaders gathered to explore how the top 20 most admired Global Business Services (GBS) organizations benchmark themselves. The session, led by Barbara Hodge, Global Editor and Analyst at SSON Research & Analytics, featured insights from James Glavey, COO of Tesco Business Solutions (this year’s winners of the World’s Best GBS), and Christof Fahr, Head of GBS Americas at Siemens. The discussion centered around three key metrics—attrition, automation, and error rate improvements—highlighting how these organizations leverage data to drive transformation in shared services.

Attrition: Retaining Talent in GBS

Attrition rates are a critical indicator of employee engagement and organizational stability. Among the top 20 GBS organizations, annual attrition rates range from 8-11%, with 37% of them reporting within this bracket. The extent of transactional work and the employee experience (EX) play significant roles in influencing attrition.

Siemens, for example, takes a data-driven approach by collecting thousands of employee commentaries on their employee experience. AI is then employed to collate, translate, and analyze this feedback, providing actionable insights to improve employee satisfaction.

James Glavey shared that Tesco Business Solutions maintains a notably lower attrition rate of 5% across its operations in India, the UK, Ireland, and Hungary. Their success is attributed to a hyper-personalized EX strategy, which includes tailored benefits packages catering to diverse markets and communities. Additionally, Tesco emphasizes corporate purpose, actively engaging employees in sustainability initiatives, such as its eco-friendly Bangalore campus that recycles 100% of its waste and water. Diversity and inclusion are also central to Tesco’s culture, fostering a welcoming environment for all employees.

Automation: Driving Cost Savings and Innovation

Automation has emerged as a key driver of efficiency and cost savings within GBS. According to SSON R&A, the median annual cost savings from automated processes among the top 20 GBS organizations is between $100,000 and $250,000, with 42% reporting savings exceeding $250,000.

Tesco takes automation beyond efficiency—developing what they call “superhero solutions,” designed to execute tasks beyond human capabilities. They also implement “Iron Man solutions,” which enhance human work rather than replace it. One notable example is how Tesco utilizes customer data on product interactions, feeding it into a large language model (LLM) to optimize packaging, pricing, and product quality. This AI-driven approach has already led to a measurable impact on revenue.

Siemens, on the other hand, recently introduced a tax automation solution. However, Christof Fahr emphasized that their focus is not on technology itself but on problem-solving. Organizations may express a desire to implement AI, but Siemens ensures that AI is truly the right solution for their specific challenges.

Error Rate Improvements: Enhancing Quality through Automation

Another crucial benchmarking metric is the improvement in error rates for automated processes. Among the top 20 GBS organizations, the median improvement falls between 15-20%, highlighting the role of automation in enhancing process accuracy and quality.

Tesco Business Solutions is taking automation a step further by exploring a B2B model—commercializing their AI and automation solutions and offering them to other non-competing GBS organizations. This innovative approach not only improves operational efficiency but also opens a new revenue stream for the company.

Final Thoughts

These benchmarking insights provide valuable guidance for organizations seeking to optimize their GBS operations. By focusing on employee experience, leveraging automation for both efficiency and revenue growth, and prioritizing quality improvements, leading GBS organizations like Tesco and Siemens are setting new standards for excellence in the industry.

Organizations looking to implement AI and automation can use SSON’s benchmarking metrics to gauge expected ROI and strategically position themselves for long-term success in the evolving GBS landscape. To learn more about SSON Research & Analytics, click here.