The Top 7 Roles and Responsibilities for a GBS Leader in 2024

In the quest to secure leadership’s seat at the table in 2024, Global Business Services (GBS) leaders must be acutely aware of the key trends that are shaping the GBS landscape. This section provides an in-depth exploration of the key trends that GBS leaders must navigate and leverage to secure their position as strategic decision-makers. By understanding and capitalizing on these trends, GBS leaders can proactively align their strategies, operations, and talent management with the changing dynamics of the GBS landscape. 

Expansion of Services – 

The expansion of services in shared services will continue at a rapid pace, encompassing a diverse range of offerings. After centralizing, optimizing, and automating operations, shared services will aim to provide more advanced and customized services, enabling organizations to gain a competitive advantage.

GBS as a Diverse Career Platform – 

GBS will emerge as the ideal platform for individuals seeking diverse and multi-faceted careers. Traditional career paths are fading away as employees desire to explore different roles, work globally, and switch career paths without sacrificing salary progression. GBS, with its expanding service lines, flexible business model, and global presence, offers a solution.

Growth of Digital Transformation

The digital transformation will become ubiquitous across organizations. The gap between IT and the business is narrowing as employees become more tech-savvy and technology becomes more user-friendly. Over the next five years, this gap will further diminish, and GBS will not only drive enterprise digital transformation but also serve as an incubator for new technologies and their potential applications.

Revenue Generation and Commercialization

The increasing commercialization of GBS models will lead shared services to add value to their organizations through revenue generation. Transitioning to a revenue-generating model will require substantial preparation and adopting new tools. However, with prominent brands already embarking on this path, other organizations are likely to follow suit.

Women in Leadership

More GBS leaders will attain board-level positions, and there will be a greater representation of women in leadership roles. According to the latest SSON State of the Industry Report, 55% of shared services already report to the CEO or CFO, and this trend will continue to grow. From a gender equality perspective, in 2023, only 10% of Fortune 500 companies had women in top leadership positions, showing a meager 2% increase from 2022. Given that the GBS industry has a significant female workforce, although currently underrepresented in leadership roles, it is hopeful that GBS will lead the way in promoting and cultivating more female GBS leaders.

Cybersecurity

In our world of perpetual crises, organizations must protect themselves from various threats like cyber-attacks. GBS holds lessons from companies that have thrived in turbulent times. By leveraging GBS capabilities to manage change and create value, organizations can build resilience to tackle external challenges.

S (Strengths):

Cost Efficiency: GBS leverages economies of scale and process standardization to drive cost savings across various business functions, such as finance, HR, and IT. This allows organizations to optimize their operational expenses and allocate resources more efficiently.

Scalability: GBS models offer flexibility and scalability, enabling organizations to quickly adjust their service delivery capacity based on business demands. This agility allows for rapid expansion or contraction of operations, adapting to changing market conditions.

Process Standardization and Optimization: GBS promotes the standardization and optimization of processes across business units and geographies. This streamlines operations, reduces errors, and enhances overall efficiency, resulting in improved productivity and customer satisfaction.

Global Talent Access: GBS provides access to a diverse talent pool across different regions, allowing organizations to tap into specialized skills, cultural diversity, and language capabilities. This access to global talent enables organizations to build diverse and high-performing teams.

Technology Enablement: GBS leverages advanced technologies such as artificial intelligence, robotic process automation, and data analytics. These technologies automate manual tasks, improve accuracy, and enable data-driven decision-making, driving operational excellence.

(W) Weaknesses:

Dependency on Outsourcing: GBS relies heavily on outsourcing partnerships, which exposes organizations to risks associated with geopolitical instability, economic fluctuations, and regulatory changes in outsourcing locations. This dependency can potentially disrupt service delivery and increase operational risks.

Limited Control over Business Functions: Centralizing business functions under the GBS model may result in limited control and flexibility for specific business units. This lack of autonomy can lead to challenges in tailoring processes to unique business requirements, potentially impacting efficiency and effectiveness.

Cultural and Language Barriers: Operating across different geographies introduces cultural and language barriers that can hinder effective communication and collaboration within the GBS organization. Bridging these gaps requires strong cultural sensitivity and effective cross-cultural management strategies.

Resistance to Change: Implementing GBS often requires significant organizational change, including process redesign, job role realignment, and cultural transformation. Resistance from employees who fear job losses or disruptions to existing processes can slow down the adoption and success of GBS initiatives.

Cybersecurity Risks: GBS heavily relies on digital technologies and data sharing. This exposes organizations to cybersecurity threats such as data breaches, unauthorized access, and information leakage. Robust cybersecurity measures must be implemented to safeguard sensitive data and protect against potential risks.

(O) Opportunities:

Enhanced Data Analytics: GBS can leverage advanced analytics capabilities to extract valuable insights from vast amounts of data generated across various business functions. These insights enable organizations to make data-driven decisions, identify market trends, and drive continuous improvement.

Expansion into New Markets: GBS provides organizations with the opportunity to expand their operations into new markets. By leveraging local expertise, language skills, and cultural knowledge, GBS can facilitate market entry, help navigate regulatory complexities, and accelerate growth in untapped regions.

Digital Transformation: GBS can serve as a catalyst for digital transformation initiatives within organizations. By adopting emerging technologies and integrating digital solutions, GBS can enhance customer experiences, improve operational efficiency, and foster innovation across business functions.

Strategic Partnerships: GBS providers can establish strategic partnerships with technology vendors, consultants, and industry experts. These partnerships can enhance service offerings, provide specialized solutions, and foster innovation through collaborative research and development efforts.

Value-added Services: GBS has the potential to evolve from a transactional service provider to a strategic partner by offering value-added services. These services may include consulting, process optimization, change management, and business insights, delivering greater value and becoming a trusted advisor to the organization.

(T) Threats:

Increasing Competition: As the popularity of GBS grows, the market becomes more competitive, with new entrants offering similar services. This can lead to price wars, lower profit margins, and increased pressure on GBS providers to differentiate themselves and maintain their market positioning.

Data Privacy Regulations: The evolving landscape of data privacy and compliance regulations poses challenges for GBS providers. Strict regulations and cross-border data transfer restrictions may limit data sharing and processing capabilities, requiring GBS providers to navigate complex legal frameworks and ensure compliance.

Disruptive Technologies: Rapid advancements in disruptive technologies, such as blockchain, Internet of Things (IoT), and augmented reality, have the potential to disrupt traditional GBS models. GBS providers must stay abreast of technological trends, continuously innovate, and adapt their service offerings to remain relevant in the market.

Talent Retention: GBS organizations face the challenge of attracting and retaining top talent. With an increasing demand for specialized skills and diverse expertise, GBS providers must offer competitive compensation packages, provide growth opportunities, and foster a culture of continuous learning to retain skilled professionals.

Geopolitical Instability: Political instability, trade disputes, or changes in regulations in outsourcing locations can disrupt GBS operations and impact service delivery. Organizations relying on GBS must monitor geopolitical developments and diversify their outsourcing locations to mitigate the potential risks associated with geopolitical instability.

Securing a leadership’s seat at the table requires Global Business Services (GBS) leaders to shoulder a range of crucial responsibilities and adopt effective strategies. The landscape demands dynamic leadership that can navigate challenges, capitalize on opportunities, and drive organizational success – 

1. Chief Partnership Enthusiast: Establish a strong partnership – GBS leaders should actively collaborate with top management to foster a strong partnership. This involves building relationships based on trust, effective communication, and mutual understanding of business objectives.
2. Strategic Alignment Maestro: Strategic Alignment- GBS leaders must possess a deep understanding of the organization’s overall business objectives and align the GBS strategy accordingly. This involves mapping out how GBS capabilities and initiatives can directly contribute to the achievement of broader organizational goals, such as increasing operational efficiency, driving cost savings, or enhancing customer experiences.
3. Chief Communication Maestro: Effective Communication and Collaboration GBS leaders should establish and maintain regular communication channels with top management, actively seeking input and feedback. By keeping stakeholders informed about the progress, challenges, and opportunities within the GBS organization, leaders can ensure that the GBS strategy remains aligned with evolving business objectives and incorporate valuable insights into decision-making processes.
4. Resource Collaboration Maestro: Collaborate on resource allocation – GBS leaders and top management should collaborate on resource allocation decisions. This includes budget allocation, staffing, technology investments, and other resources necessary to support the GBS strategy aligned with the organization’s objectives.



5. Progress Tracking Wizard: Measure and report progress – GBS leaders should establish key performance indicators (KPIs) that align with the overall business objectives. Regularly measuring and reporting progress against these KPIs helps demonstrate the value and impact of GBS initiatives to top management.
6. Chief Adaptation Catalyst: Adapt and evolve – GBS leaders should remain agile and adaptable to changes in business objectives. They should be willing to adjust the GBS strategy and initiatives as needed to ensure continued alignment with the organization’s evolving goals and priorities.
7. Chief Customer Happiness Officer: Supreme Customer Experience – In the present-day business environment, shared services are progressively acknowledging customer experience (CX) as the guiding principle for delivering services. This transformative change is significantly influencing the approach to process optimization within shared services. While the primary strategic objectives still revolve around cost reduction, service excellence, and service effectiveness, each of these goals is now intricately connected to the ultimate aim of providing an outstanding customer experience.

GBS leaders must enhance their visibility and influence within top management circles to secure their leadership’s seat at the table. Shining the spotlight on GBS requires a strategic and proactive approach that highlights the value and impact of GBS operations on the organization’s overall success. In the below points, we will explore the essential steps that GBS leaders must undertake to increase their visibility and secure their rightful place alongside other key decision-makers. 

Establishing a Reporting Framework:

Develop a structured reporting framework that captures key performance indicators, achievements, and the impact of GBS initiatives. This framework should align with the strategic goals of the organization and provide relevant and concise information for top management.

According to the 2023 Global Shared Services and Outsourcing Survey, – 

Regular Reporting:

Provide regular updates to top management on the performance and progress of GBS. This can be done through periodic reports, dashboards, or presentations that highlight the key metrics, milestones, and accomplishments of GBS teams. Consistent and timely reporting helps maintain top management’s awareness of GBS activities.

Showcase Success Stories and Case Studies:

Share success stories and case studies that demonstrate the positive impact of GBS on the organization. Highlight specific projects or initiatives that have delivered significant cost savings, process improvements, enhanced customer experience, or other tangible benefits. These success stories serve as concrete examples of GBS value and help build credibility with top management.

Engage and Collaborate with Top Management:

Actively engage with top management by seeking their input, feedback, and involvement in GBS initiatives. Invite them to GBS events, workshops, or presentations to showcase the strategic impact of GBS. Encourage open dialogue and collaboration to align GBS goals with the overall business strategy.

Quantify Strategic Impact:

Clearly articulate and quantify the strategic impact that GBS brings to the organization. This includes highlighting contributions to revenue growth, cost optimization, risk management, scalability, and agility. Use data-driven insights and analysis to demonstrate the value proposition of GBS and its alignment with top management’s priorities.

Foster a Culture of Recognition:

Recognize and celebrate the achievements of GBS teams and individuals. Implement a recognition program that acknowledges exceptional performance, innovation, and contributions to the organization. This not only motivates the GBS workforce but also showcases their accomplishments to top management.

Seek Endorsement and Support:

Proactively seek endorsements and support from influential leaders within the organization. Engage with key stakeholders and decision-makers to secure their backing for GBS initiatives. This can include securing budget allocations, resource allocation, or endorsement of strategic projects.

By implementing these steps, GBS can enhance top management visibility and ensure that they have a clear understanding of the value, impact, and strategic importance of GBS within the organization.

80% of GBS leaders acknowledge that their capabilities position them to provide essential support to core business functions, transcending the traditional perception of being relegated to the “back office.”

GBS leaders have a crucial role in driving organizational success by embracing their responsibilities and adopting effective strategies. By focusing on areas such as customer experience, process optimization, and talent development, GBS leaders can unlock the full potential of their organizations.

As we move forward, it is clear that GBS leaders must remain agile, adaptable, and forward-thinking. The pace of change will continue to accelerate, and staying ahead of the curve will be paramount. By leveraging emerging technologies, embracing innovation, and fostering collaboration, GBS leaders can position themselves and their organizations for sustained success.

We hope this ebook has provided you with valuable insights into the key trends shaping the GBS landscape in 2024 and has equipped you with the knowledge and tools to navigate the challenges and seize the opportunities that lie ahead. Remember, the future belongs to those who are willing to embrace change and lead with vision and resilience. Good luck on your journey as a GBS leader in this exciting era of transformation.