Introduction

Organizations have continuously experimented with shared services / Global In-House Centers (GICs), third-party outsourcing, and hybrid sourcing models to deliver global services. As the scale of operations grows bigger and organizations expand geographically, managing multiple functions across multiple geographies through a confusing set of contracts, delivery models, practices, and processes becomes cumbersome. GBS offers a solution to this sourcing model maze, as it offers integration of locations, functions, governance, and processes across shared services and outsourcing contracts within the enterprise.

In this report, Everest Group highlights the key components of GBS model components including business-aligned strategies around sourcing model, location decisions, talent model, scope of work, and service delivery/management. We also discusses the business drivers for firms adopting the GBS model and the key differences between GBS and traditional shared services and outsourcing models. In the process, we have also highlighted multiple case studies of enterprises that have adopted the GBS model.

The report also addresses key considerations for organizations to implement GBS adoption and key pitfalls to avoid as shifting to GBS could be a daunting task due to the involvement of multiple stakeholders, geographies, Business Units (BUs), and functions.

Scope and content

This report presents views on the following topics:

• Introduction to GBS and its key constituents
• Key business drivers that influence GBS adoption
• Difference between GBS and traditional shared services and outsourcing models
• GBS implementation and key pitfalls to avoid