Global Business Services: A Way to Improve Internal Services

A compelling business case is driving more and more enterprises toward a global business services (GBS) model. Building a mature, value-producing GBS organization requires many integrated elements and practices -- one of the most critical being the ability to measure and monitor performance in order to guide continuous improvement. The Hackett Group's recent survey found that, while GBS executives recognize the importance of monitoring performance, most are still struggling to move their metrics and measurement capabilities to the next level.

Large enterprises are accelerating the pace at which they are adopting GBS models -- service organizations that integrate and consolidate multiple business functions as a means of improving internal services and delivering greater business value.

The Hackett Group's 2012 survey confirms that companies are continuing to expand the scale and scope of their GBS operations. More than two-thirds of survey respondents (69%) reported that they have multifunction GBS organizations today, while 80% of those responding project that they will have such organizations in the future.

Finance is, by far, the function most commonly included in today's GBS organizations, with 84% of survey participants reporting that their GBS organizations currently encompass finance services. The next most commonly integrated function, human resources, is part of the GBS organization at 45% of the companies surveyed. Looking ahead, all of the 19 functions measured in the study are projected to increase with respect to their inclusion in GBS organizations. In fact, participants project that some areas, such as indirect procurement (included in 26% of GBS organizations today; 40% in the future), are 50% or more likely to become a part of their future GBS organizations.