Technological change, in particular the growth in the use of digital technologies such as cloud, intelligent automation, and data and analytics, has caused an existential shift in the service models organizations use to harness these technologies in support of their business processes. In order to keep pace of change, global business services (GBS) organizations will need to make significant changes to their operating models.
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The advent of intelligent automation and related technologies has caused many organizations to fundamentally reevaluate their service delivery models. However, most organizations struggle to define how they should utilize outsourcing, shared services, and GBS to best exploit these technologies.
Though most organizations intend to “retain and retrain” the bulk of their employees impacted by automation, these expectations may prove unrealistic given the economics of the processes to be automated and the skills required of the next-generation workforce.
The GBS organization has the potential to be more valuable than ever in the new environment. However, GBS must change its focus from cost-cutting to value enablement and look to enable a “boundaryless” organization where technologies are deployed across functions and target customer-facing imperatives.
GBS organizations face significant barriers in taking on a lead role in implementing and managing new technologies as the focus on cost savings becomes less important and the skills required to drive business value become more complex. Those GBS organizations that fail to overcome these barriers risk losing relevance.