Looking for ways to save? A recent study by the benchmarking firm the Hackett Group suggests that implementing a global shared services model can cut costs substantially. Hackett estimates world-class companies with global business services units save more than 50% in labor costs and 25% in other costs.
Michel Janssen, Hackett’s chief research officer, describes global business services (GBS) as “shared services on steroids,” as companies include more functions and processes. Finance is usually the first function moved to a shared services center, but a global business services unit might also encompass HR, IT or procurement. According to Hackett, 75% of Global 1000 companies surveyed have shared services units that integrate the processes of more than one business function.