GBS as a lever against cost, efficiency and innovation pressure
Just a few years ago, Global Business Services (GBS) organizations focused on optimising costs. Now, GBS has evolved into an important partner that drives innovation, improves customer experiences and provides valuable insights to further develop business strategy. These are the key findings of the eighth edition of the Global Business Services study, for which PwC surveyed companies worldwide. GBS continues to play a crucial role in reducing operating costs by implementing efficient processes and technologies. At the same time, it increases operational efficiency by implementing standardised and automated solutions that boost productivity and minimise error rates.
“Mature GBS organisations play a key role in companies: they reduce costs, constantly develop new technologies and methods, support the introduction of innovative products and thus enable companies to adapt quickly to market changes and remain competitive.”
The study at a glance
The role of global business services has changed significantly in recent years: originally, these operated largely silently in the background with an exclusive focus on transactional activities. Today, they form an important and value-adding piece of the puzzle in any modern corporation’s strategy. Leading GBS organisations not only efficiently optimise the operational processes assigned to them, but also specifically promote innovation, increase customer satisfaction and deliver in-depth insights to advance strategic business planning.
From cost centre to centre of excellence
This transformation has also raised the bar for GBS organisations: they should not only enable pure cost savings, but also make a measurable contribution to the company’s success, both in terms of top and bottom line. The focus here is particularly on increasing process efficiency, promoting digitalisation and the transformative use of technologies. Established GBS are thus increasingly developing into global capability centres (GCCs).
As GCCs, they are also responsible for reducing marginal costs for additional revenue, managing risks efficiently, increasing employee productivity through optimised processes and technologies, developing new skills and shortening time-to-market. This next stage in the evolution of the GBS model will only further cement its role as a key factor in gaining competitive advantage.
Focus on process excellence and expansion of the service portfolio
GBS organisations are currently focusing more on professionalising their service offerings by targeting process excellence. The aim of these initiatives is to achieve greater efficiency and consistency through standardisation and digitalisation.
At the same time, they are expanding their scope of activities both horizontally and vertically: they no longer perform simple transactional tasks, but also complex, value-adding services. A key aspect of this transformation is the transition to end-to-end processes, in particular through the integration of more sophisticated services that require more comprehensive control.
Three out of four companies want to implement CoEs
These developments are supported by the increased implementation of so-called centres of excellence (CoEs). Around 75 per cent of respondents are either planning to introduce such centres or are already in the process of doing so. There is also a trend towards repatriating previously outsourced functions. This development can be attributed to the growing self-image and increased competence of GBS.
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“Global Business Services – Accelerating Transformation, Sustaining Efficiency”
GBS as a driver of digital transformation
The integration of data-driven and digital functions into global business services has now become common practice and extends the value proposition of these units beyond pure cost efficiency. There has been a sharp increase in the desire among GBS organisations to establish themselves as pioneers in data analysis and innovation promotion. This development reflects the growing importance of GBS: they make an important contribution to achieving business goals and driving forward the transformation of the company. For example, 50 per cent of respondents say they see GBS as a driver of digital transformation in their company.
Expectations are rising, but target achievement is lagging behind
As GBS matures, its managers are faced with crucial questions: How can added value be measured beyond cost savings? How can existing data be used to generate additional value and strengthen its role as the backbone of the company?
Against this backdrop, it is not surprising that only 18 per cent of respondents say they have achieved their GBS goals. In 2023, this figure was still 25 per cent. Nevertheless, GBS organisations are aware of the progress that needs to be made and have defined clear targets: 65 per cent are now taking measures to achieve their goals – two years ago, this figure was significantly lower at 55 per cent.
Further findings of the study at a glance
- How are GBS organised?
- What do GBS focus on in order to be perceived as drivers of innovation?
- What do companies look for when choosing a location for GBS?
- What are companies focusing on in their future location strategy?
- Which skills are particularly in demand in GBS?
How are GBS organised?
More and more GBS are developing into multifunctional centres with a global presence that take on end-to-end processes and expert functions: 82 per cent of GBS are now multifunctional. In contrast, the proportion of purely single-function centres is steadily declining: over the past four years, the figure has fallen from 25 to 13 per cent. This is an indication that more and more business areas are recognising the added value of GBS and structuring their organisations accordingly.
What do GBS focus on in order to be perceived as drivers of innovation?
In order to be perceived as genuine drivers of innovation, 79 per cent of respondents focus on the implementation of new technologies – an area in which GBS are particularly well positioned due to their structure. In addition, they are attempting to further increase the level of competence of the services they offer through so-called ‘centres of excellence’ (CoEs) and their further development into global capability centres. Seven out of ten respondents emphasise that GBS organisations should prioritise stakeholder management in order to improve collaboration between the functions remaining in the company and the GBS units.
What do companies look for when choosing a location for GBS?
When selecting locations for GBS, the most important criterion is whether there is a qualified workforce available locally. 96 per cent of respondents consider this point to be important or very important. 88 per cent of respondents consider labour costs and the language skills of employees to be decisive factors. Other factors that are consistently rated highly by respondents include the political and economic stability of a location, a functioning infrastructure, digital skills, and the quality awareness and ambitions of the workforce.
What are companies focusing on in their future location strategy?
Most companies (83 per cent) are focusing on strengthening and scaling their existing GBS locations. Almost half of those surveyed (45 per cent) want to rely on hybrid delivery models that combine onshore, nearshore and offshore elements. Just under one in four companies (23 per cent) plans to outsource to external service providers, while one in five wants to open new nearshore/offshore locations (19 per cent). More innovative or disruptive models such as virtual centres are currently only being considered by a small proportion of companies (16 per cent) and remain niche strategies for the time being.
Which skills are particularly in demand in GBS?
The requirements for employees in GBS have also changed significantly: three out of four companies consider data analysis skills to be particularly important – a clear sign that data-driven decision-making is now central to GBS. Knowledge of process automation and robotic process automation (RPA) is cited as a key skill by 66 per cent of respondents. 54 per cent value expertise in the field of (generative) artificial intelligence. This is hardly surprising, as many GBS functions, particularly in accounting and procurement, have long relied on AI and RPA.
“The role of GBS has changed fundamentally: whereas the focus used to be on cost efficiency and small-scale process efficiency, today they act as strategic partners who concentrate on specific expertise, value creation, data-based decision-making processes and digital innovation.”
Arne Weuster,Partner at PwC GermanyDownload our latest study now:
GBS Study 2025: “GBS – Accelerating Transformation, Sustaining Efficiency”
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Methodology
The 2025 study ‘Global Business Services – Accelerating Transformation, Sustaining Efficiency’ is the eighth edition of this series of studies. Every two years, PwC analyses the strategies, structures, working methods and current trends of global business services organisations from a wide range of industries.
For the current edition, hundreds of companies with around 350 GBS centres worldwide were surveyed between March and August 2025 on GBS-related topics and current challenges.
The study also offers the perspectives of numerous experts from the global PwC network, providing profound insights into the GBS industry worldwide and current developments in this area.
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