Global Business Services (GBS) is a relatively new concept in the world of business that has evolved from the traditional Shared Services Model. In recent years, large companies have embraced the GBS model for its many advantages, including improved cost optimization, increased productivity, better quality control, and enhanced compliance.
However, many businesses still need to become more familiar with GBS services and solutions and how they can benefit their organization. This blog will provide a comprehensive understanding of Global Business Services and Shared Services, including their definition, evolution, and the benefits they offer. (Read More: Forensic auditing in corporate governance)
Shared Services
Shared Services refer to a centralized support service that provides back-office operations such as accounts payable, IT, or other high-volume transactional activities that are simple to automate. Many large companies have established shared service centers, either regionally or globally, to support their back-office operations. The centralization, automation, and standardization processes are at the heart of shared services.
Centralization refers to taking advantage of scale economies by combining multiple processes into one location. On the other hand, automation uses new technology to deliver cost savings and improve scalability. Standardization refers to improving processes through standardization to reach the ultimate cost savings goal.
Global Business Services
The Global Business Services model emerged as a more sophisticated and integrated version of shared services. Unlike shared services, which may be regional, national, or multinational, GBS is a worldwide service model. Unlike shared services, which may only provide basic transactional needs, GBS offers a variety of high-value functions, including consultancy and data analytics.
The GBS model has embraced new tools and technologies to provide higher-value functions and behaves more like a business partner with equal standing to the company it serves rather than a service provider. GBS controls and manages processes like a corporation would resulting in improved cost optimization, increased productivity, better quality control, and enhanced compliance.
THE WAY FORWARD
In conclusion, Global Business Services is a cutting-edge solution for corporates looking to streamline their operations and optimize their supply chain processes. With a focus on centralization, automation, and standardization, GBS provides many benefits, including cost optimization, productivity gains, improved quality, increased compliance, enhanced risk management, and improved customer service. Additionally, GBS enables companies to free up resources for other important initiatives, such as product and service development, market expansion, and more. With its ability to integrate high-value functions and stay ahead of the latest technological advancements, GBS is a game-changer for companies looking to remain competitive in today’s rapidly evolving business landscape. If you’re considering implementing GBS for your company, choosing a provider that understands your specific needs and can help you achieve your goals is essential. Doing so can improve your supply chain operations and take your organization to the next level.
This content is meant for information only and should not be considered as an advice or opinion, or otherwise. AKGVG & Associates does not intend to advertise its services through this.