Outsource Magazine Issue 28 - (Page 102)

This issue: GLOBAL BUSINESS SERVICES ThE SIGNIfICANCE Of GLOBAL BUSINESS SERVICES RISES AS OUTSOURCING OUTCOmES fALL ShORT Our partners at HfS Research return with a study hot off the presses, examining how organisations do – and should – utilise their various business support services structures. CEO Phil Fersht and Research VP Sourcing, Governance and Healthcare Strategies Tony Filippone tell us more… I In March 2012, HfS Research and PwC conducted a major research survey entitled “The Future of Global Business Services”, to identify the drivers and results of organisational efforts to improve business support services. “Global Business Services” (GBS) is a strategic governance framework that helps organisations transform business support functions into services that solve business problems and create new, more effective solutions for both internal and external customers of the organisation. GBS focuses on optimising the mix of resources, process acumen, and technology (including cloud computing) to deliver technology, finance, human resources, procurement, sales support and other services on an enterprise-wide basis to support the business strategy. An executive summary of the results can be found here. The analysis of responses from 325 participating organisations focused on how leading organisations achieved superior outcomes. The study had six major findings. important cost-reduction vehicle, it remains less effective when not integrated into a shared services program. standalone outsourcing provides a costcentric approach that achieves few additional benefits for far too many organisations. Results of the study (see Figure 1) show that shared service initiatives outperform outsourcing initiatives by a significant margin across productivity, quality, innovation, and alignment with corporate strategy objectives. Hybrid initiatives that leverage both shared services and outsourcing operating models also outperform stand-alone outsourcing models in terms of productivity, quality, and innovation. While outsourcing remains an 1 despite the proven benefits of their shared services and outsourcing initiatives, most organisations only include a small proportion of their operations in their shared services or outsourcing initiatives. Forty-one per cent of organisations’ customer service, 49 per cent of their facilities management, and 58 percent of their supply chain organisations remain in decentralised in-house models. Organisations must overcome internal resistance to change and shift operations into shared services and outsourcing programs to achieve better performance results. 2 Phil Fersht is CEO of HfS Research. He can be contacted at phil.fersht@hfsresearch.com 102 www.outsourcemagazine.co.uk ●● ●● http://www.hfsresearch.com http://www.outsourcemagazine.co.uk

Table of Contents for the Digital Edition of Outsource Magazine Issue 28

News
Deep Thought
John Seddon
At Your Service?
Plenty To Chew On
The Power of Two
Big Data
Invested Outsourcing
Tim Cummins
NOA Round-Up
LPO
Managing Knowledge in a Partnership
A Long Way Still To Go
Recruitment Process Technology
Let’s Talk About Our Relationships
Welcome
Great Expectations
Transformative Technology
The Future of Rightshoring
Top Ten
The Legal View
HfS Round-Up
Offshoring
Online Round-Up
Inside Source
The Last Word

Outsource Magazine Issue 28