World-class Global Business Services
Key Insights from Hackett’s 2016 GBS Performance Study
Presented at the 7th Annual ABSL Conference
28 June, 2016
© 2016 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
7th Annual ASBL Poland Conference | 1
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This document contains trade secrets and other information that is company sensitive, proprietary, and confidential, the disclosure of which would provide a competitive
advantage to others. As a result, the reproduction, copying, or redistribution of this document or the contents contained herein, in whole or in part, for any purpose is strictly
prohibited without the prior written consent of The Hackett Group.
Copyright © 2016 The Hackett Group, Inc. All rights reserved. World-Class Defined and Enabled.
The Hackett Group
93%
A global strategic business advisory and
operations improvement firm
of Dow Jones
Industrials
We help companies establish and implement
sustainable business performance improvements
Hackett Value Grid™
•  SG&A benchmarking “gold standard” since 1992
of DAX
•  We start with “why not”, fact-based, research &
intellectual capital
86%
•  Senior practitioner model, results focused
of Fortune 100
•  Assist our clients in designing and implementing
World-class Service Delivery execution capabilities
52%
•  Long term transformation journey assistance through
executive advisory membership
•  Partnership with the Chartered Institute of
Management Accountants (CIMA) to provide GBS
training, professional certification and lifelong
learning as the Certified GBS Professionals Program
87%
The Hackett Group defines and
enables world-class performance
of FTSE 100
48%
of CAC 40
© 2016 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
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GBS Demographics in 2016
More than 5,700 Shared Service Centers & BPOs operate globally, ~600 in Poland
SSC & BPO Distribution
Regional distribution of SSCs & BPOs
112, 2%
1181,
21%
1747,
30%
4008,
70%
Captive
BPO
Europe
Americas
Oceania
Africa
637
244
Poland
Asia
Top 5 global destinations with SSCs
435
India
2934,
53%
1259,
22%
Top 5 Global destinations with BPOs
270
93, 2%
113
109
97
Philippines
China
United
States
United
States
United
Kingdom
355
Poland
205
191
India
China
Source: 2016 Hackett SSC & BPO database (Finance, HR, IT, Procurement centers, populations >100)
© 2016 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
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Are Global Business
Services (GBS) taking
over the majority
business support
functions?
In many organizations, this is a real,
if oftentimes unsaid, fear…
Our job as GBS professionals
is to change the conversation
© 2016 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
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What does World-class GBS Look Like?
One Word: Outperformance
35%
8%
Average initial savings over
baseline costs realized by
world-class GBS
Peer = 20%
100%
Percentage of world-class
GBS rated as “effective or
highly effective” at delivering a
high-quality services portfolio
Peer = 44%
93%
World-class GBS rated
as “effective or highly
effective” in
contributing to
enterprise agility
Peer = 42%
Average annual recurring savings
realized by world-class GBS
Peer = 5%
93%
World-class GBS rated as
“effective or highly effective”
at delivering against
customer intimacy goals
Peer = 39%
Source: Hackett Global Business Services Performance Study, 2016
© 2016 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
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The Hackett Group GBS Value Evolution Model
Value focus expands as the GBS organization matures
Stage
Maturity Stage
3
Stage
2
Stage
1
Today
2020F
Integrated
services
operations
9%
14%
Multi-function Global Business Services org
End-to-end process orientation
Global Process Ownership
Integrated, infrastructure, or hybrid center model
Service management implementation
Enterprise standards driven
Performance technology improvement
Knowledge centers of excellence
BPO & managed services outsourcing
Service effectiveness focus
Multi-function
integration
41%
48%
Functionally focused & owned platform
Transactional standardization
Regional Shared Services consolidation
Transactional automation
Cost reduction focus
Single
function
consolidation
50%
38%
§
§
§
§
§
§
§
Service-oriented Integrated Business Services stand-alone entity
Commercial performance profile
Service catalog centric
Beginning-to-end service orientation
Revenue-enabling knowledge centers of excellence
Innovation contributors
Total business value focus
§
§
§
§
§
§
§
§
§
§
§
§
§
§
§
Focus
N%
© 2016 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
Indicates % of Shared Services /
GBS organizations at that Stage
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Title and content layout
A GBS operating model
needs to be able to defy
organizational gravity…
…as demands from
business units and
functions exert a pull
towards decentralization
© 2016 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
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GBS Starts with a Balanced Operating Model
The step up is redeploying capacity – leaders continue to utilize and lever up GBS – refocusing on more
strategic enabling capabilities
GBS Impact on
Value
Business Outcome
Growth
Experience
Business Agility
Save to Invest
Portfolio Management
GBS
43%
59%
Peer
World-class
Value
Creation
Business
Partner
Operating Leverage
Speed
Cost-to-Serve Optimization
Effectiveness
Scale
Location Strategy
Cost Savings
Efficiency
Business Control
Policy
Compliance
Compliance and Control
GBS VALUE
Source: The Hackett Group
…to better enable enterprise agility, scalability, and overall value creation
© 2016 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
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GBS Placement and Value
As the adoption rate of a GBS model by function increases, so does the value
that GBS can deliver for that function
GBS Value
% in GBS - Other Functions
% in GBS Scope
IT
45%
33%
43%
68%
59%
Peer
Procurement
HR
Finance
51%
20%
47%
34%
Cust. Contact (inbound)
31%
Order Management
24%
Real Estate/Facilities
20%
Supply Chain
17%
Legal
14%
Corp. Communications
13%
Risk & Security
13%
EH&S
World-Class
Source: The Hackett Group’s Annual Global Business Services (GBS) Performance Study
© 2016 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
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World-Class GBS – Key Findings from the Hackett 2016 GBS Performance Study
STRATEGY
Cost leadership
continues to be
“table stakes” to
increasing
influence and
direct value
impact
“Outside in”
customer
centered
solution design
is the Stage 3
“new normal”
CUSTOMER EXPERIENCE
By 2020, >80%
will have moved
beyond singlefunction
VISION
Consolidation to
global hub with
limited regional
spokes and BUspecific COE
satellites
DELIVERY NETWORK
Virtually 100%
of WC GBS
utilize GPOs
to manage
E2E
processes
GLOBAL PROCESS OWNERSHIP
Leading GBS
have cloud,
mobile and
RPA solutions
on their IT
roadmaps
TECHNOLOGY ADOPTION
The rise of the
hybrid integrated
+ infrastructure
GBS operating
model
OPERATING MODEL
Integrating COEs
into the GBS
model becomes
critical to
accelerating GBS
adoption
CENTERS OF EXCELLENCE
World-Class GBS organizations know talent is the true foundation of their success and invest up to 3X more in sourcing,
developing and retention
TALENT
Source: Annual Hackett Global Business Services (GBS) Performance Study
© 2016 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
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For further information, please contact:
Sean Kracklauer
President, Global Executive Advisory and Research
Mobile:
+1 404 345-9936
skracklauer@thehackettgroup.com