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From Back Office to Power Player: The Explosive Evolution of GBS
From Back Office to Power Player: The Explosive Evolution of GBS

March 17, 2025

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Conceptualized and created in the early 1990s, Global Business Services (GBS) was mainly tasked with focusing on centralizing transactional operations, especially for HR and finance. The service shot into prominence during the pandemic, providing support functions to businesses. And the capabilities built during those times can provide crucial support in today’s turbulent times.

Technology is Leading the Way

The world today is evolving faster than we can adapt. Digital transformations are taking place even as we speak, and the situation is creating a dual quandary for companies. They’re faced with the challenge of having to change their existing ways of working while also making the most of the new opportunities that can deliver greater value.

Client expectations from GBS have evolved beyond back- and middle-office functions, making the service a critical enterprise backbone. While efficiency has always been a criterion for effective GBS, clients demand greater efficiency and service effectiveness that adapts to their changing needs. New business requirements, such as a customer need for digital-first solutions, integrating a distributed workforce, and undertaking end-to-end process optimization to support these changes, could make the difference in being a market leader.

When we consider the limitations of a traditional business services model, it becomes evident that GBS must take on a more strategic role. Global business service organizations have led from the front in the past; however, the service now needs to reinvent itself to offer functions that are more resilient, flexible, and scalable. GBS organizations must also expand their support and offer value-added activities, like customer management, collections and payments, and even sales functions.

It is a great time for GBS to move from the back office to take center stage and emerge as a strategic partner for corporate leaders and businesses alike, where it can generate value beyond its traditional role.

Disruption Calls for a Transformation

Whether we consider the traditional model or take into account the newly defined role of GBS, productivity has always been a critical driver for its success. However, today GBS faces a new set of challenges in the evolved business landscape. As the global economy progresses and market demands rapidly evolve, GBS leaders must find the right spot where they can deliver operational excellence while also fostering innovation. This calls for a new approach, one that relies on data-driven productivity management. The goal post has shifted and GBS must create lasting value that aligns with an organization’s long-term strategic goals.

Unfortunately, there is much ground to cover still. According to a recent BCG study, only 41% of companies believe that GBS creates any real value. This means GBS organizations must raise their game and provide companies the exact support needed to take on the new world challenges. Today’s GBS landscape is fiercely competitive and evolving rapidly. With critical issues like talent retention, process standardization, and digital transformation, the one assured path to success is through productivity, and simply tweaking the GBS strategy to make minor changes will no longer cut the ice.

Productivity: A Critical Lever for GBS Transformation

As the corporate landscape evolves, so does the GBS organizations’ approach to driving productivity. While always a focus area for GBS, this facet is now viewed through a wider, more strategic lens. This change in approach is a reflection of the evolving role of GBS within organizations and the expanding scope of its impact beyond back-office functions.

Earlier, GBS productivity metrics were limited primarily to cost savings. However, with their evolution as strategic partners, their role has widened to offer sustainable value creation across multiple dimensions. Over the years, Global Business Services  has evolved from focusing on efficiency and outcomes to now providing innovative solutions and creating value. Today’s GBS leaders are focusing on improved cash flows, enhanced customer experiences, and the seamless integration of emerging technologies.

What this means is that for larger organizations productivity is a critical factor in meeting their growth targets and extracting the maximum value from these services. To meet these needs, GBS organizations are required to play a dual role. They must continue to deliver operational efficiencies while also driving innovation and proactive solutions to navigate the uncertainties of the changing corporate world.

Conclusion

To seize new opportunities, GBS teams must go beyond traditional back-office roles and adopt more flexible structures and services. By functioning as a more strategic business unit, GBS organizations can provide real value and drive impact through innovative and customized solutions.

Are you ready to harness the power of data and turn insights into tangible results, to drive productivity and deliver exceptional value? If you act today, your organization can lead from the front, transforming today’s challenges into opportunities for growth tomorrow.
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ProHance is a cutting edge, global operations management platform. ProHance is enabling organizations to drive efficiency while optimizing employee utilization with deep insights on employee and team productivity. Top Fortune companies are using ProHance in their global centers to unlock the full potential of their human capital. Our SaaS-based modular approach allows an enterprise to effectively measure time and effort contribution with over a 200+ customizable reports. Our clients have experienced productivity gains of 15% – 30% in less than 3 months of deploying our solution. With 370,000+ users across 25 countries. ProHance is accepted as a critical enabler for organizations to build a workforce that is visible, connected, integrated, and efficient.

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