Navigating the Evolving Landscape of Global Business Services (GBS)
In the face of an ever-complex global scenario characterized by military conflicts and economic turbulence, businesses are confronting multiple challenges. Despite these difficulties, the Global Business Services (GBS) sector continues to show robust growth, both globally and within Central and Eastern Europe (CEE). This resilience and expansion are highlighted in our latest research initiative, GBS 3.0, which maps the evolution of this sector from decentralized processes in Shared Service Centers (SSCs) to the current state of digital transformation.
How it started
Historically, GBSs began as SSCs that primarily handled transactional and operational tasks. However, over the years, there has been a significant shift. Today, GBSs are transforming from mere delivery centers to strategic hubs, acting as engines of transformation across entire organizations. This transition is driven by the expansion of service scopes from finance-centric tasks to encompassing a variety of functions including procurement, IT, legal, compliance, risk management, data analytics, supply chain, and human resources.
Developments and Risks
One of the most exciting developments in the GBS landscape is the incorporation of advanced digital capabilities. With access to mature, large datasets, GBS centers are increasingly becoming incubators for pioneering technologies like generative AI. This technological leap forward empowers them to play crucial roles in innovating corporate-wide processes and tackling issues such as business and cybersecurity risks.
The rise of GBSs as key players in strategic advisory and business partnership is paralleled by a growing need for upskilling the workforce. The sector demands professionals who are not only tech-savvy but also capable of acting as strategic advisors and trusted business partners.
How does it look Globally?
Geographically, while India continues to offer cost benefits for roles that require lower complexity, the CEE region is becoming a preferred locale for senior and managerial positions. This shift is fueled by rising salary costs in India and the competitive cost structure offered by the CEE region.
Another emerging focus area for GBSs is Environmental, Social, and Governance (ESG) compliance. As organizations become increasingly aware of and prepared for ESG requirements, GBSs are positioned to play a pivotal role in implementing and managing sophisticated ESG frameworks.
Lastly, the shift in work models has also left its mark on the GBS sector. While the hybrid model has gained traction, there is an anticipation of a gradual return to office settings, with a majority of CEOs expecting employees to revert to traditional office environments within the next three years.
As businesses continue to navigate these complex times, the evolution of GBSs into multifaceted strategic hubs presents a clear pathway to not only survive but thrive in the modern corporate landscape.
