How can you consolidate SSCs and individual BPOs into a centralized GBS Model? What strategy deployed worked best, and how was this applied to a global organization?
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CIO11 days ago
I don't have any direct implementation experience of setting up of centralised GBS Unit. However, based on my extensive implementation experience of large scale IT projects, I can give following strategy to transition from SSCs to GBS: One strategy in a global organization involved starting with a Regional Hub Model. The organization began by consolidating SSCs within a specific region to form a regional hub. This hub would be responsible for standardizing processes, implementing digital tools, and proving the value of the GBS model. After the regional success, the hub model should be replicated across other regions, eventually linking them to form a global network.
Key success factors included strong leadership alignment, early investment in technology, and a phased approach that allowed the organization to adapt the model based on regional learnings. Additionally, a robust change management plan would ensure that the transition is smooth, with minimal disruption to operations.
First, assess and align your current SSC and BPO operations with the broader business goals. Identify any redundancies or inefficiencies that need streamlining. Set up a centralized governance framework, this will help you manage consistency across regions but still allow for local flavor.
From there a hybrid approach often works best. Maybe keeping critical strategic processes in-house via SSCs while outsourcing transactional tasks to specialized BPO providers. This combination helps you scale and control costs effectively. While at the same time, leveraging technology—cloud platforms, automation (RPA), and data analytics—will help drive efficiency and provide real-time insights for better decision-making.
As with any program change management is crucial. Getting stakeholders involved early and communicating clearly the benefits and the vision. Training and development for teams transitioning to GBS roles will ease the shift.
For a global organization, it’s often and normally smart to use a phased approach. Start with a phase 1 region to test and refine your strategy before rolling it out globally, adjusting as needed for local compliance and market differences. Setting up Centers of Excellence (CoEs) within your SSC can also provide ongoing expertise in areas like automation and data analytics, driving continuous improvement across the GBS structure.
The bottom line? Consolidating SSCs and BPOs into a centralized GBS model is about aligning business goals, standardizing where you can, and using technology and governance to make it all work smoothly.