Driving performance with global business services
Perfect 10: the transformative impact of global business services
The companies that have begun to embrace the multifunctional shared services model are already reaping the rewards. The evolution of this model is characterized by 10 factors of the best shared services and outsourcing:
1 They colonize the company
The list of business services is becoming longer – and moving beyond what was once back office.
2 They achieve more than the sum of their parts
Business services deliver further economies of scale, process improvements and more harmonization across the organization.
3 They aim for the high ground
If global business services are to deliver more than one-off cost savings, they must do more.
4 They are flexible located
Moving to multifunctional isn’t the end of outsourcing. Moving up the value chain, more transactional work will be outsourced.
5 They offer services any time, any place, anywhere
For access to services whenever needed, several locations are required to align processes and working practices.
6 Their leaders take charge
As shared service centers take on more work, lines of control are becoming more important.
7 They measure performance
Performance measurement tools must be provided. Other functions will be reluctant to move to shared services without evidence.
8 They empower their people
The shared services model has been associated with low staff morale and high attrition. Multifunctional models are offering employees a more compelling career path.
9 They innovate
Many longer-term gains come from innovations realized once processes and functions have moved into the shared services unit.
10 They can work in emerging markets
An emerging market can benefit from business services, even if a one-to-one labor arbitrage value proposition is not there.
The EY global business services maturity check
How mature is the setup of your organization? Our shared services center maturity check is a simple and convenient way to benchmark the progress made by your business against similar organizations. The process uses a questionnaire based on six building blocks, and continues with a face-to-face interview and more detailed data gathering. We’ll evaluate your strengths and weaknesses in a detailed maturity report.
For more information, contact: Martin Weis, Senior Manager, leading EY’s global business services method development team.×