New Research: Organizations Will Invest in Global Business Services Over Standalone Outsourcing/Shared Services

A new research study by KPMG LLP and HfS Research finds that six out of 10 organizations will turn to global business services (GBS) over standalone outsourcing and shared services by 2017. GBS is defined in this report “as an operating model and strategic governance framework that optimizes the mix of human capital, outsourcing and shared services-based service delivery models, process innovation, and technology to deliver business services in an enterprise-wide, cross-functional basis to support key components of an organization’s business strategy.” Data was gathered for the study from all management levels at 416 organizations with more than $1 billion in revenue. Global regions and industries are represented. Key findings from the report:

  • “62 percent of organizations will be extensively investing in GBS (hybrid, integrated outsourcing and shared services) delivery over the next three years”
  • “Annual external GBS expenditure will surpass $40 billion in 2013 and increase to $73 billion by 2017”
  • “Cost reduction, strategic operational analytics, and automation dominate business outcomes for today’s sourcing strategies, with four out of 10 organizations viewing these as critical to the success of their shared services and outsourcing programs”
  • “37 percent of respondents have increased their investment in technology, and 38 percent in analytics, that reduce reliance on labor”
  • “GBS usage and focus is currently highest in the consumer goods, pharmaceuticals, and manufacturing industries”
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