What It Takes to Become a World-Class Global Business Services Center
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What It Takes to Become a World-Class Global Business Services Center
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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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What It Takes to Become a World-Class Global Business Services Center
- 1. OWS16 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
- 2. OWS16 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™
- 3. OWS16 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
- 4. OWS16 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
- 5. OWS16 Finance, HR, Procurement, and IT are main GBS functions Source: The Hackett Group Annual Global Business Services (GBS) performancestudy, 2015
- 6. OWS16 Enterprise Process Ownership Used by World-Class GBS Source: The Hackett Group Annual Global Business Services (GBS) performancestudy, 2015
- 7. OWS16 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
- 8. OWS16 World-Class GBS More Effective at Enterprise Processes Source: The Hackett Group Annual Global Business Services (GBS) performancestudy, 2015
- 9. OWS16 % 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
- 10. OWS16 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
- 11. OWS16 < 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
- 12. OWS16 The Hackett Group’s 2016 GBS Performance Study will be released in April 2016 Mark Peacock, Principal, The Hackett Group mpeacock@thehackettgroup.com