Global Business Services (GBS) is a corporate structure that standardizes the delivery of support services, allowing businesses to improve efficiency and agility while reducing costs. GBS groups comprise specialists with diversified backgrounds and experience in different functions, typically finance, human resources, and IT.
Global Business Service Strategies typically focus on multiple organizational functions, automating processes, consolidating systems and infrastructure, and optimizing knowledge management. By contrast, corporate & shared services have a single function focus and approach.
Global business services can help companies achieve economies of scale, realize efficiencies across functions, and improve service quality and delivery times. In short, GBS provides a holistic approach to improving organizational performance. GBS can be a powerful tool for achieving organizational goals and corporate objectives when implemented effectively. More than half of the companies today have evolved to come form of GBS to improve and standardize support services, leverage infrastructure to scale quickly, and realize savings opportunities. GBS often yields five to twenty percent more cost savings than traditional shared services.
A GBS model differs significantly for the shared services model. An effective GBS organization operates as a single unit across geographical boundaries. It incorporates single leadership, a shared operating strategy across functions, common technology platforms, end-to-end processes, and enterprise-wide vendors. Gaining this global leverage allows organizations to achieve economies of scale, optimize service delivery, and quickly adapt to changing global market conditions.
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