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AI-led Generative Business Services: The future of Global Business Services (GBS)

Home » Research & Insights » AI-led Generative Business Services: The future of Global Business Services (GBS)

GBS has long been your go-to for cost reduction and operational efficiency. However, the future demands a shift from transactional activities to an integrated, value-driven approach. AI and data analytics are your new best friends, transforming data into a strategic asset that creates value and a competitive advantage.

Today, GBS faces long-term demand and supply challenges. Current strategies often misalign with the priorities of boards and CEOs who focus on revenue growth, margin improvement, and digital modernization. Attracting and retaining top talent are becoming increasingly difficult, resulting in a shortage of skilled professionals needed to drive innovation.

HFS Research, in collaboration with Capgemini, reveals a game-changing shift from traditional cost-focused models to AI-driven generative business services. The future of GBS is about growth, innovation, and enterprise-wide transformation. Generative business services will create a connected, frictionless enterprise.

The research paper is based on the data points and analysis of data collected from 510 survey respondents across various demographics.

The research focuses on seven tenets to transform your GBS into generative business services:
    • Scope: From silos to synergy
      Shift from defining your scope by functional activities to enterprise-wide data flows. The goal is a seamless, connected enterprise that maximizes digital transformation.
    • Success measures: From KPIs to key performance outcomes (KPOS)
      Move beyond operational cost reduction and productivity metrics. Start measuring customer satisfaction, revenue growth, and process transformation.
    • Technology: From enabling process to creating competitive advantage
      Generative AI (GenAI), machine learning, and hybrid/multi-cloud solutions will be central to driving innovation and delivering business outcomes, not just enabling operations.
    • Data: From reports to revenue
      Leverage data as a core asset for decision-making and value creation. Generate insights that drive strategic decisions and uncover new value sources.
    • Skills: Beyond labor arbitrage (finally!)
      Emphasize acquiring new and hard-to-find skills over traditional cost-cutting measures. Focus on soft skills (communication, negotiation, etc.) and nurture talent that drives innovation and transformation.
    • Third-party providers: From vendors to orchestrators
      Evolve third-party providers from transactional vendors to ecosystem orchestrators that would bring new skills, technologies, and capabilities to support your GBS transformation.
    • Commercial models: From counting bodies to measuring outcomes
      Engagement models with third-party providers must become more flexible and outcome-based. This ensures GBS initiatives align with business objectives and deliver measurable results.
As a GBS leader, you have a golden ticket to transform your organization’s perception and value from cost-cutters to game-changers. It’s time to disrupt or get disrupted. Embrace this bold new world of generative business services or risk being left behind.

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