Since 1980’s most Shared and Business Services Models have been experimented combining offshoring activities in some low costs’ locations for labor arbitrage with Global Functions, Data & Process Ownership to improve efficiency and effectiveness across Businesses and Countries.
These Global Business Services (GBS) Delivery Models were based on Assumptions that consolidating Resources in large Centers are more efficient and effective that in small ones and that distance with Customers and Stakeholders was not destroying Value. We should ask ourselves why most advanced GBS organization are only representing today 10 to 20% of overall SG&A Costs and FTE after over 30 years of initiatives and why ExCom are so conservative vs GBS scope?
We strongly believe at AgileGBS that former GBS models were mainly focused on efficiency (Costs) and not so much on effectiveness (Value) and therefore Companies were not getting all the potential benefits from their Transformation.
This is the reason why we argue in favor of building more distributed GBS Service Delivery Models combining Global Data and Processes Ownership with Local Centers of Expertise and Operations using all Enablers from Governance and Performance monitoring to Talent and Technologies Management.