Leveraging Global Business Services to align value to the C-suite agenda

Leveraging GBS to align value to the C-suite agenda

GBS aligns value to the C-suite agenda, beyond cost savings

Global Lead, Shared Service & Outsourcing Advisory

KPMG in the U.S.

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Clients today demand both cost savings and value from their process improvement and automation efforts. Eight in 10 say the following factors are important or critical to the success of their Global Business Services (GBS) program1:

  • reduced cost structure in operations
  • improved quality of operational data to drive management decisions
  • better use of automation to reduce reliance on manual labor
  • greater scalability of operations.

Alternative service delivery models, such as shared services and outsourcing, have focused primarily on reducing operating costs. Innovation through outsourcing is often cited as well, but that benefit is not always achieved. GBS, however, if executed well, can add value to the business far beyond cost savings.

The true value of GBS lies in its potential to deliver top-line business value. Progressive organizations increasingly focus GBS efforts on support services that can drive business value into the enterprise as a whole, as opposed to the common goal of cost savings that shared services and outsourcing paradigms typically provide. This value-based point of view requires changing both the philosophical and operational approaches for using shared services and outsourcing.

To learn more about the value drivers of GBS read our insights report (PDF 149.9).

Footnotes

KPMG and Horses for Sources (Mike Beals and Phil Fersht), Heroes Don’t Scale: Establishing an Effective GBS Governance Strategy, January 2014.

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