PwC: The future of Global Business Services evaluated

By Rob Starr, Content Manager, Big4.com

A new study has found that while organizations largely achieve the global sourcing objectives they focus on, such as cost reduction, they are challenged to achieve other related objectives such as scalability, flexibility, and innovation unless disciplined focus is applied. PwC US and HfS Research recently released “The Future of Global Business Services,” an analysis of how organizations maximize the impact of their shared service, Global Business Service (GBS), and outsourcing strategies.

According to the PwC and HfS Research report, shared services create substantial value and have had the most positive impact on: internal operating costs, productivity/operating efficiency, and contribution to corporate business strategies. The study also reveals that outsourcing infrequently delivers significant impact beyond cost reduction.

The Future of Global Business Services” provides additional insight into considerations for organizations’ shared services strategies, including programs that have greater alignment with corporate strategies create better outcomes and organizations are leveraging global shared services and outsourcing delivery centers on a regional basis to address global needs.

The study found that while organizations largely achieve the global sourcing objectives they focus on, such as cost reduction, they are challenged to achieve other related objectives such as scalability, flexibility, and innovation unless disciplined focus is applied.  The study included a survey of 325 senior business operations with responsibility for shared services and outsourcing strategy. The survey was conducted between February and March 2012.