Global business services (GBS) have transformed from being viewed as cost centers to engines of innovation and value. In fact, leading organizations are redefining the role of GBS, positioning it as a strategic partner capable of addressing evolving business needs and driving impactful results across operational and growth-focused activities. This shift requires deliberate investment in transformative technologies, integrated service models, and an emphasis on customer- and workforce-centric strategies. By aligning these priorities, companies can ensure that GBS continues to advance innovation, operational excellence, and competitive differentiation.
Expanding the service portfolio of global business services
One of the most notable shifts occurring within GBS is the expansion of its service portfolio, a strategic move involving the integration of a broader range of functions and a focus on higher-value services. GBS has historically been synonymous with delivering cost efficiencies through labor arbitrage by outsourcing services to lower-cost regions. There’s now an expectation for GBS to transcend traditional boundaries.
By 2030, we project that GBS organizations will have integrated over 50% of major functions, such as finance, IT, and HR, into their frameworks, with accounting functions nearing full integration. The inclusion of front-office functions, like customer service and marketing shared services, further underscores a growing acceptance of GBS's strategic role across diverse business sections. This evolution signifies a transition where GBS becomes a strategic partner, adept at delivering expertise-based services that improve overall business outcomes, not only cost savings.
Harnessing AI for operational excellence
Generative artificial intelligence (AI) has emerged as a transformative force within GBS. The integration of generative AI promises to significantly magnify efficiency and service delivery effectiveness, with AI forecasted to automate or augment a substantial proportion of business tasks by 2030. Incorporating AI into GBS processes has the potential to streamline operations, reduce manual interventions, and accelerate productivity gains (Exhibit 1). The development of insight engines and automation in GBS is crucial, and many companies have already embarked on pilot projects that aim to pave the way toward broader AI integration, transforming traditional service models by enabling GBS organizations to deliver sophisticated insights and solutions at a rapid pace.
Transitioning labor strategies — from arbitrage to talent management
The operational evolution of GBS hinges on access to talent, making its acquisition, development, and retention key pillars of success. GBS was popularized as a cost-saving mechanism enabled through labor arbitrage. Today, the model is shifting toward a talent-centric approach, whereby expertise and workforce quality outweigh standalone cost advantages.
Leading global centers are integrating skilled specialists within their frameworks, thereby enhancing the scope and scale of GBS functionality. Locations such as India, Vietnam, and Poland have established themselves as talent hotbeds, combining accessible resources with market-relevant capabilities.
Companies must go the extra mile and build workplace environments that attract and retain top-tier professionals capable of working seamlessly alongside AI technologies and innovating at scale. This requires organizations to invest in creating compelling employee propositions, aligning career paths with growth opportunities, and fostering meaningful development plans. By doing so, GBS teams transition from high-volume task execution toward more focused, expertise-driven contributions. Additionally, a strong emphasis on engagement and workforce satisfaction not only promotes retention but also creates a reputation for excellence, attracting talent in a competitive labor landscape (Exhibit 2).
Workforce considerations cannot be separated from leadership priorities. Effective transformation requires dedicated sponsorship from executive stakeholders to elevate GBS operations to strategic mandates. Leadership buy-in facilitates alignment of goals across both GBS functions and frontline business units, ensuring that talent acquisition and development serves wider organizational priorities.
Critical success factors for GBS implementation
For GBS to achieve its full potential as a strategic partner, companies must redesign the operating models that govern these organizations. End-to-end accountability and clarity in roles should be prioritized, eliminating inefficiencies and improving integration with core business processes. When properly aligned, this transformation ensures that GBS services meet evolving business needs while maintaining operational excellence across functions.
Customer-centric redesign is critical to achieving this alignment. GBS functions must be calibrated to reflect the priorities of internal and external stakeholders, tying service delivery objectives to measurable organization-wide impacts such as cost reduction, improved service speed, and enhanced scalability. Engaging relevant business units early during the design stages ensures that GBS frameworks are attuned to priority areas, fostering closer collaboration and increasing relevance.
Moreover, the shift toward expertise-driven services demands innovation in standardized procedures. High-performing GBS organizations embrace technologies and tailored workflows to improve quality metrics while reducing redundancy. This focus minimizes operational waste while boosting the delivery speed and customer satisfaction levels that ultimately prove GBS' capability as a strategic partner.
Unlocking transformational opportunity
The future of GBS lies in its ability to transition from operational overhead to indispensable business enabler. Achieving this shift is a necessary evolution for organizations looking to adapt to competitive and ever-changing market realities. This transformation is most impactful when coupled with forward-thinking leadership. Clear and consistent sponsorship ensures that GBS initiatives align seamlessly with broader organizational priorities. Piloting initiatives, demonstrating measurable success early, and scaling strategic frameworks over time solidify operational effectiveness while achieving buy-in across the enterprise.
Organizations that approach GBS as a strategic imperative rather than a cost-cutting mechanism create opportunities for their businesses to thrive amid complexity, uncertainty, and economic pressures. By investing in capabilities that align talent, technology, service delivery, and leadership, they unlock impactful outcomes that position GBS as a linchpin for innovation and value creation. As the role of GBS evolves, the question shifts from whether businesses should embrace it to how they can maximize its strategic potential.
