Insight

Outsourcing and business continuity plans continue to shift

GBS leaders planning for COVID-19 recovery should plan for a bumpy ride

Alicia Kuhn

Alicia Kuhn

Director Advisory, Procurement & Business Services, KPMG US

+1 404 219 7978

Charles Arnold

Charles Arnold

U.S. Lead, Procurement and Business Services, KPMG US

+1 773-960-8991

The business world’s reaction to COVID-19 is evolving and GBS organizations have reset quickly, adapting to virtual delivery. Most are successfully working from home and are adjusting to rapidly changing supply and demand shocks. And service providers who were struggling a week ago to reset and enact their BCP/DR plans are rapidly overcoming those initial challenges.  At KPMG, we think these evolutions will progress through three phases: Resetting, Recovery, and New Reality.

Across the globe, companies are in various planning stages for the Recovery phase. We are all chomping at the bit to move forward, but we need to be mindful as well.  As we move out of the Resetting phase into Recovery, organizations must be ready for a nonlinear recovery progression – one with rapid starts and stops, two steps forward and two steps back. The reopening of the global economy will be a city-by-city process, and we may see retrenchment in instances where COVID-19 flare-ups reoccur.  This means GBS leaders’ service delivery model recoveries will be accompanied by rolling regional “brown outs” as regions roll back to social distancing measures. The winners in this next stage of the game will be those who anticipate and adapt to the fact that regions will be in different states of recovery simultaneously and successfully manage service delivery across those regions as they move forward.

GBS organizations must begin to plan for this new challenge – quickly flexing workflow across the service delivery network by region. It will be a critical skill for the Recovery phase and one that carries companies forward into the New Reality phase.  We believe as GBS leaders prepare for the New Reality, this enterprise service management framework and its ability to better manage and ensure service continuity across the delivery network will become a core requirement for GBS success. 

There is no question that the post COVID-19 world will look different than the one we all lived in just a few months ago.  These changes to the way we work and where we work, will also change how we manage work.  The ability to flex and adapt service delivery quickly is going to become crucial in the months to come.  Listen to the most recent podcast from our GBS team here

Review KPMG’s resources on COVID page and Global Business Services.