Global Business Services (GBS)

## Key benefits of Global Business Services (GBS) Adopting the Global Business Services (GBS) model offers organizations a number of key benefits that contribute to increased operational efficiency, reduced costs and improved service delivery. Companies that choose this model are empowered to systematically transform their internal processes. 1. #### Cost reduction and process optimization GBS integrates disparate company functions into a single structure, eliminating duplication of operations and redundant resources. By standardizing processes and implementing automation, businesses can reduce operational costs and reallocate resources to higher priorities. 2. #### Unified employee engagement Creating a single point of access to corporate services ensures that employees can comfortably interact with company services. The use of digital tools such as portals, mobile apps and chatbots speeds up the resolution of requests and minimizes time costs. 3. #### Transparency and manageability of processes GBS provides companies with real-time visibility into all stages of request fulfillment. This transparency increases the level of accountability of individual departments and allows for quick changes to improve business performance. 4. #### Flexibility and innovation The integrated model allows companies to quickly adapt to change, innovate and expand their service offerings. The technology solutions underlying GBS support low-code platforms for designing, testing and scaling new processes. These benefits make GBS not just a way to reduce costs, but a strategic tool for transforming companies in the face of increasing competition and new market challenges. ## How to implement Global Business Services (GBS)? Implementing the Global Business Services (GBS) model is a process that requires a strategic approach and step-by-step implementation. There is no universal recipe: the method depends on the size of the business, current processes and available resources. However, successful practices demonstrate several key steps that enable organizations to integrate GBS as efficiently as possible. 1. #### Implementation Stages Building a GBS begins with consolidating local and regional units into a common structure. This process requires analyzing the current state, eliminating duplicate operations, and creating a common platform to support services. Gradually, the company moves to the creation of a global infrastructure covering all key business functions. It is important to ensure the transition from siloed processes to an end-to-end model where all services are integrated for employees and customers. 2. #### The right team The success of GBS depends heavily on a professional team. Key roles include a GBS leader, specialized analysts and implementers with change management experience, process automation skills, and working with technology. Building a strong team should be based on the company's long-term strategy and needs. 3. #### Focus on processes and automation One of the most important factors for a successful GBS implementation is to remove bottlenecks within processes. An in-depth diagnosis of business operations is needed to identify the intersection points where duplicate tasks occur or productivity slows down. Technology solutions, such as automating repetitive tasks and using unified management systems, can improve efficiency and reduce costs. 4. #### Global Thinking Successful GBS integration requires a change in the way you're used to looking at processes. Instead of managing individual functions or departments, a global service model must be implemented. This includes developing standards that tailor the new structure to the business and actively utilizing digital tools such as low-code platforms. These steps help organizations make GBS integration manageable and efficient. The final goal is to create a single system that can flexibly adapt to new business conditions while maintaining a high level of ## GBS vs Shared Services: what's the difference? The Shared Services model has long been used by large companies to optimize the performance of individual functions such as IT, HR or finance. However, with the growing scale of business and increasing complexity of processes, this approach has become insufficient. Global Business Services (GBS) are the next stage in the evolution of Shared Services, offering more integrated and strategic management. #### Shared Services: focus on decentralized support Under the Shared Services model, companies create service centers that provide support for one or more functions, such as accounting or HR, at the regional or country level. The main objectives are to reduce costs and improve the quality of work within a limited set of processes. However, this model is often challenged by silos between functions, difficulties in coordinating work, and lack of global synergies. #### GBS: integrating services at a global level GBS brings together the traditionally siloed Shared Services functions under one organizational structure, supporting horizontal processes that span the entire business. Instead of separate service centers, integrated platforms are used that manage operations at a company-wide level. This enables higher levels of efficiency, flexibility and strategic focus. **Key differences:** - **Scale: **Shared Services are typically limited to servicing a single function in a specific region, whereas GBS covers multiple functions globally. - **Purpose: **Shared Services focus on saving budgets and standardizing processes within individual departments. GBS, on the other hand, aims to improve the entire operating model of a company by providing end-to-end management. - **Approach: **Shared Services take a more fragmented approach to resources, while GBS integrates them into a centralized ecosystem. - **Value: **GBS is a strategic tool to improve business competitiveness beyond basic cost optimization. As such, GBS acts as a logical next step for companies looking to not just improve efficiency, but to transform operating models for sustainable growth. ### GBS and CROs: similarities and differences Operations Service Centers (OSC) is a common organizational management model in Russia, similar to the GBS concept. An OSC is based on the principles of consolidating functions such as finance, accounting, purchasing and other repetitive operations within separate centers. This approach aims to increase efficiency, reduce costs and standardize business processes. Despite the similarity of basic tasks, GBS goes beyond the traditional CBO approach.

Although the basic tasks are similar, GBS goes beyond the traditional CBO approach. #### Similarities: 1. **Optimization Goal: **Both GBS and CROs aim to improve company productivity, eliminate duplicate operations, and reduce costs. 2. **Function Consolidation: **Both models pool resources and standardize processes to simplify operations management. 3. **Business Process Support: **The main objective of both models is to provide services to internal departments of the company. #### Differences: 1. **Scale: **CBO typically operates at the country or regional level, while GBS focuses on organizing processes on a global scale. 2. **Integration: **GBS focuses on end-to-end operations management, integrating HR, IT, finance and other functions into a single system. A CBO typically serves one or more distinct processes within a narrower area. 3. **Role of Technology: **GBSs make extensive use of automation and modern IT platforms to unify processes and manage requests. The vast majority of GBS utilizes more traditional management approaches. 4. **Strategic focus: **GBS acts as a business transformation tool, providing flexibility and readiness for change. CROs are more likely to fulfill operational objectives, focusing on improving the efficiency of existing functions. Thus, CROs can be seen as the initial stage in the development of the GBS model. For organizations seeking global integration and sustainability, moving from CLC to GBS becomes the next logical step. ## Conclusion Global Business Services (GBS) is not just an optimization tool, but a strategic model that helps companies build more efficient business processes and secure competitive advantage. By combining disparate functions into a single framework, GBS creates a foundation for greater transparency, lower costs, and faster adaptation to market changes. Unlike the traditional Shared Services approach, the GBS model addresses more complex challenges beyond standardization and local optimization. It transforms the way businesses manage their global operations, providing opportunities for end-to-end process integration and innovation. To effectively implement GBS, it is important for companies to take a phased approach and invest in building a strong team that can identify issues, optimize processes and ensure the model is strategically focused. This requires both flexibility in approach and a willingness to change in order to build a structure that is resilient to challenges and offers new prospects for growth. GBS is more than an evolution of business processes. It is a step towards full-fledged digital transformation, creating a unified corporate experience and strengthening the company's position in the global competition.