What is Global Business Services?

EDITOR’S NOTE:

SSON Research & Analytics data shows that the current shared services landscape contains a wide range of maturity levels. As of April 2023, 27% of Global Business Services (GBS)/Shared Services Organizations (SSOs) were 0-3 years old, meanwhile, 24% of GBS/SSOs have been in existence for 10+ years. This variety in maturity tells us that there is a need in the space for SSON editorial to cover both introductory topics and more nuanced issues.

In order to provide in-depth coverage, we have turned to the SSON Global Advisory Board for assistance. The Global Advisory Board is made up of 30+ members with years of experience in shared services and GBS. These members assist SSON with setting the agendas for in-person and digital events, provide recommendations to SSON Research & Analytics for upcoming surveys, and consistently contribute content to the SSON website. Now, these advisory board members will take over “Ask the Expert”, an advice column where, once a week, a board member will answer a frequently asked question by the SSON community. If there is a question you feel the advisory board should answer let us know by emailing info@ssonetwork.com.

Global Business Services (GBS) is a term of art, not science. It broadly refers to the model that an enterprise adopts to create efficiency and effectiveness by consolidating, standardizing and improving business processes within corporate functions such as finance, HR, procurement, and others. The thesis is that by harnessing the power of the right combination of people, process, and technology, the GBS model can be transformative. 
  
What scope is included in a GBS model, the geographies it encompasses, how it is resourced, and how it is delivered is highly contextual and varies from enterprise to enterprise. Some companies consolidate processes in one function globally and call it GBS. Others may deliver multi-functional scope to one geographic region. Some resource delivery is through outsourcing, while others provide services by harnessing in-house resources or a combination of both employed and outsourced resources (hybrid model). Some provide select processes, while others deliver a process end-to-end. In some cases, GBS acts as a landlord, housing and facilitating process delivery that is owned by the business or the function; in other cases, the GBS organization is responsible for delivering processes as a service. 
  
In sum, GBS models vary. But what is consistent no matter the operating model is the stream of value that it can deliver to the enterprise.