GBS organizations and the growing importance of centers of excellence
Trust in GBS organizations is growing. Parent companies are increasingly entrusting GBS with more complex tasks, which is why transactional service centers are often supplemented by specialized centers of excellence (CoEs).
Originally established as competence centers to improve processes and consolidate process knowledge, we are now seeing companies using CoEs as a driving force for the introduction of new business models, the initiation and development of new products and service offerings and as a spearhead for general innovation.
This development reinforces the transformative role of CoE organizations as the vehicle of choice for business change.
Our study at a glance
Drive improvements, set standards
In the past, cost savings were cited as the main reason for introducing a GBS. GBSs continue to be a useful source of efficiency that leads to cost savings. In addition, however, we observe a number of other factors that underline the resilience of the GBS model: among other things, the majority of the companies surveyed (31%) are aiming to establish a talent hub with personnel specializing in complex processes. In addition, there is an increased focus on generating added value for the entire organization resulting from the rise of highly specialized competence centers (27%) and - of course - the constant focus on excellent delivery of transactional services with an effective cost advantage (28%).
This triad is complemented by new topics: GBS is also increasingly attributed a pioneering role in digital transformation and the introduction of digital tools and innovations (13%) as well as in the generation of data-driven insights (1%).
In the coming years, the importance of GBS will continue to increase, with a stronger focus on modernizing the overall organization with the help of GBS through digitalization, reforming processes and increasing its flexibility. This aims to enable an efficient response to challenges and changes in the market.
The strategic direction of GBS organizations for the next five years is consistent with that of our last survey, indicating that the overall strategy of GBS organizations remains unchanged. For more than three quarters of the companies surveyed, digital transformation, standardization, expansion of value-added services and broadening the scope of activities continue to be the most important GBS strategies and goals.
Other study results at a glance
- Further development regarding location strategies
- GBS as digital pioneers
- Outsourcing remains rare
- Search for qualified staff
Further development regarding location strategies
Recent geopolitical developments have had a significant impact on the choice of location. The coronavirus pandemic and the associated lockdowns have increased the acceptance of remote and hybrid workplaces, making it possible to attract talent from outside the local labor markets. The war in Ukraine and the associated uncertainties have slowed down new openings in the Eastern European GBS market, at least temporarily. Taken together, these trends lead to an increase in location-independent virtual teams, which can benefit from the advantages of low-wage countries combined with access to highly qualified talent.
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Global Business Services – Catalysts of value
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The methodology
The current study „Global Business Services – Catalysts of value“ is the seventh publication in this series of studies. Every two years, we survey shared service centers from a wide range of industries about their strategies, structures, working methods and current trends. For this study, we interviewed customers around the world between March and August 2023 on topics relating to global shared services and their current challenges.
In addition, the study combines perspectives from several experts from the global PwC network and thus offers unique insights into the global GBS industry.
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