1) The document examines the differences between shared services organizations and global business services (GBS) based on a study of over 100 shared services professionals. 2) The study found that GBS are more customer focused, provide higher value services across multiple functions, and are seen as strategic partners, while shared services focus more on transactional processing within individual functions. 3) About 13% of respondents had already become a GBS, while 45% were considering or in the process of transitioning to the GBS model, finding it can deliver improved scalability, efficiency, and value.

1. Shared services in some cases have developed into a new form,
commonly referred to as global business services.
However, out of the 6000 or so shared services organizations
globally, only a few hundred of GBS operations are thought to exist.
EXL and sharedserviceslink have joined forces and conducted a
study to ask: what is the difference between a global shared
services operation and a GBS? And: is the change worth it?
Over 100shared services professionals
responded to the study. Firstly, you'll want to know
where they are from:
53% of respondents were classified as 'mature',
having had a shared services operation for 5
years or longer:
And what was the breakdown of their shared
services operating model?
We asked our respondents what they thought the
differences were between shared services and
global business services. With over 100
responses, we crowdsourced the
following definition:
Based on this definition, how many of our
respondents are actually DOING GBS?
Interestingly, the study illustrated that shared
services which are 5 years old, or older are more
likely to have started the GBS journey.
But what does this mean for their service delivery?
Before we examine the
appetite for GBS, let's
first define what the
term 'global business
services' means:
Whatmakes
global business
services different?
The6guiding principles
to graduate to global
business services
Looking at the respondents already running a GBS,
versus respondents running shared services, we
wanted to examine the similarities and differences.
When it comes to strategic objectives, there
seems to be an overlap between the two groups.
Shared services and GBS organizations agreed
that their top three priorities are:
This difference begins to be more acutely
depicted when looking at activities managed by
the GBS and shared services:
GBS are associated much more with incorporating
multiple functions, and are perceived as more
service oriented, with one global lead and board
level representation.
However we identified 4 significant areas in which
shared services and GBS differ.
An infographic brought to you by: and
Global
Business
Services
Europe
56%
Middle
East &Africa
5%
North
America
24%
Asia
15%
22%
25%31%
14%
3%
5%
2-4 years old
Less than
24 months
old
Just starting up,
not yet live
Not yet
shared
services
10 years old
or older
5-9 years old
26%
13% 10%
20%
31%
Centralized, not
Shared Services
Global Shared
Services
Country
Specific
Shared
Services
Global Business
Services
Regional Shared
Services
Shared
Services
Global
Business
Services
Shared
Services
Global
Business
Services
Shared
Services
Global
Business
Services
Outcome based
services
Take on functions beyond
finance, and more than just
transactional processes.
Cuts across processes to
provide higher value
services within verticals and
cuts across verticals as well
Perceived as an equal
partner to the business,
able to advise on pricing,
budgeting and strategy
Transaction based
processing
Shared
Services
64%
Global
Business
Services
83%
Shared
Services
33%
Global
Business
Services
58%
Generally limited in
operations and scope to
individual functions
Generally seen as a
service provider to deliver
contracted functions
1
Improving
processes
2
Reducing
costs
3
Improving
service
quality
Global business services are
more customer focused.
There were some striking differences in how the
different types of organizations defined their
purpose.
83% of GBS said being a customer focused
organization was key to their purpose,
compared with 64% of shared services.
Now click here to see a GBS in action.
This short film goes deeper into the
results of this study and looks at the
Cargill GBS story.
If you would like further insights into the
potential to of adopting a global business
services model, or to get more out of your
existing service and operations platform
then please contact:
Terence.Balzanella@exlservice.com or
Leo.Curran@exlservice.com
EXL is a leading business process
solutions company that looks deeper to
drive business impact through integrated
services and industry knowledge. EXL
provides operations management,
decision analytics and technology
platforms to organizations across multiple
industries. For more information, visit
www.exlservice.com.
© 2013 sharedserviceslink and EXL Service
Now that we have begun to define what a
global business services organization is, and
what the difference is between shared services
and GBS, let's conclude this report with the six
guiding principles for you to take to graduate
from a shared services organization to a GBS.
These 6guiding principles can guide you on
your path to becoming a global business
services organization or help you improve your
existing operation.
So is the GBS model worth the effort? Looking
at the differences in this report between the
qualities of the two models, it either suggests
more sophisticated SSOs become GBSs, or that
the GBS model really does make your
operation more sophisticated.
What we can determine however, is that GBS is
not just a multifunctional shared services with a
fancy name. It’s more than that, and a model
that is clearly having an impact now, and likely
to have that impact deepen, with experience
and lessons learned, over the coming months
and years.
In the short term, is it worth it? Based on this
report our conclusion would be yes.
58% of GBS said delivering higher value
functions was key to the purpose of their
organization, compared with 33% of shared
services.
3
2
When looking at certain
characteristics, there is a striking
disparity between those of a GBS and
characteristics of a shared services
organization
Which characteristics are essential to the definition
of shared services or global business services?
1
Our respondents
told us that being
customer focused is more of
a priority for global business
services than it is for
shared services.
Global
business
services
Shared
services
5
6
Higher
value functions.
Incorporate higher
value functions such
as consulting,
advising on pricing
and decision
support.
Culture.
Inspire a service
oriented culture
with a constant
focus on
delivering more
value.
Tools and
technology.
Leverage technology
across the organization
and use the tools of 3rd
parties to achieve
results beyond what
can be achieved
in-house or within
functional silos
Leadership.
Push for global,
board level
leadership to get the
investment and
attention your
organization
deserves
Structure.
Recognize that
the most effective model
involves a mix of captive,
offshored and outsourced
operations. Incorporating
multiple functions creates
a platform for improved
efficiency and
scalability.
Perception.
Strive to be,
and to be seen
as an equal
partner to the
business
2
1
3
4
13% have already become a GBS organization
45% are considering moving to a GBS or are in
the process of becoming a GBS.
27%
29%
13%
13%
18%
We are too
early in the
journey to be
actively
thinking about
this model
The
organization
is considering
moving to
a GBS
model
We are
in the
process of
becoming
a GBS
We are
a GBS
The GBS
model
isn’t right
for us
“Global business services (GBS) is a
more integrated and mature evolution
of the shared services model. GBS
provides services beyond transactional
functions and has a wider remit and
expertise to deliver higher value
functions, such as consulting and
business analytics. GBS deploys
advanced tools and technology to
deliver scalability to the business. GBS
incorporates multiple functions and
leverages business service delivery
across all international operations,
thinking and acting globally. GBS runs
activities as a business, fully in control
of the process, the budget,
and the reporting lines.”
Providing
admin support
to functions
such as
sales
and marketing
Providing
decision
support
44% 65%
42% 73%
Advising
on pricing
and
budgeting
22% 58%
Providing
consulting
services
25%
72%
Is service
oriented instead
of process
oriented
33% 47%
Has one
global lead with
board level
representation
26% 46%
Incorporates
multiple
functions
The disparity gap
48% 70%
Global business services are more
likely to embrace a hybrid model and
take advantage of the tools and
technologies of third parties.
58% of GBS agreed with the statement: “Third
parties would bring scale, experience tools and
enablers to deliver the best possible service”,
compared with 39% of shared services.
4
The disparity gap
What are
they and is
the change
worth it?