Presentation at the 2016 International Asso of Outsourcing Professionals (IAOP) Outsourcing World Summit. Using data and trend analysis from Hackett’s GBS benchmark and annual performance studies, this session will identify practices and strategies that separate World-Class multi-functional GBS organizations from peer GBS groups. We will highlight performance differences between World-Class and peer, how World-Class GBS groups use outsourcing to drive superior results, and discuss the next wave of GBS operating models with specific focus on hybrid captive-outsourced GBS models.

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Disney’s Yacht & Beach Club Conference Center
February 15-17, 2016
What It Takes to Become a World-Class Global Business
Services Center
Mark Peacock, Principal, The Hackett Group

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The Hackett Group
A global strategic business advisory
and operations improvement
consulting firm
We help companies establish and
implement sustainable business
performance improvements
Core principles – intellectual capital
and fact-based approach, senior
practitioners, start with “why not”,
and results focused HACKETT DEFINES AND ENABLES
WORLD-CLASS PERFORMANCE
Hackett Value Grid™

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GBS Slowly Moving Up the Value Curve
2012
57%
6%
37%
2015
50%
9%
41%
Source: The Hackett Group Annual Global Business Services (GBS) performancestudy, 2015

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The single BU or single geography GBS is nearly extinct
Service management model Stage 1 Stage 2 Stage 3
The GBS organization provides services to a single
BU or geography in which your company operates.
The GBS organization provides services to multiple
BUs or geographies in which your company
operates
The GBS organization provides services to all BUs
and geographies in which your company operates
61% 61%
0%
22%
38%
100%
17% 0% 0%
GBS scope and reach by GBS stage
Source: The Hackett Group Annual Global Business Services (GBS) performancestudy, 2015

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Finance, HR, Procurement, and IT are main GBS functions
Source: The Hackett Group Annual Global Business Services (GBS) performancestudy, 2015

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Enterprise Process Ownership Used by World-Class GBS
Source: The Hackett Group Annual Global Business Services (GBS) performancestudy, 2015

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45%
23%
25%
7%
Peer
WC GBS have
almost
2Xthe level of
enterprise-wide
process
standardization
compared to
Peers
85%
12%
3%0
World-
class
Enterprise-wide Business Unit
Within geographies No or limited standardization
Source: The Hackett Group Annual Global Business Services (GBS) performancestudy, 2015

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World-Class GBS More Effective at Enterprise Processes
Source: The Hackett Group Annual Global Business Services (GBS) performancestudy, 2015

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% of captive projects
delivering
initial cost savings
over 10%
60%
% of outsourcing
projects delivering
initial cost savings
over 10%
70%
Source: The Hackett Group Annual Global Business Services (GBS) performancestudy, 2015
% satisfied with
business
transformation from
captive sourcing
70%
% satisfied with
business
transformation
from outsourcing
34%
Captive and Outsourced GBS
deliver similar initial cost savings
Captive GBS better than at
process transformation

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Outsourcing Delivers Faster Benefits to Top Performers
< 0% 0% 1-5% 6-10% >11%
Source: The Hackett Group Annual Global Business Services (GBS) performancestudy, 2015

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< 0% 0% 1-5% 6-10% >11%
Peers Have More Quality Problems with Outsourcing
Source: The Hackett Group Annual Global Business Services (GBS) performancestudy, 2015

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The Hackett
Group’s 2016 GBS
Performance Study
will be released in
April 2016
Mark Peacock, Principal, The Hackett Group
mpeacock@thehackettgroup.com