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2021 was a milestone year for GlobalBusinessServices (GBS) with most enterprises reporting the model exceeded expectations for globalbusinessservices solutions and delivery. GBS leaders will need to rethink how best to control operatingcosts. We expect an average wage increase of 8.1%
Macroeconomic changes, talent shortages, and evolving trends, including technological advancements, have businesses increasingly relying on outsourcing as a strategy. These tools encompass a wide range of technologies requiring deep expertise in areas where your business is unlikely to have the team to accomplish this.
“ Efficiency is doing things right; effectiveness is doing the right things. ” – Peter Drucker In the 1980s, Shared Service Centers (SSCs) and third-party Independent Software Vendors (ISVs) significantly changed how American organizations managed essential functions by providing access to global talent.
For instance, India and Eastern Europe have become hubs for IT and software development talent Cost arbitrage: While cost savings remain a key driver, the focus has shifted to achieving costefficiency without compromising quality.
Miami, FL — September 28, 2023 — Human resources (HR) operatingcosts increased significantly in 2023, with key contributors being wage inflation and high turnover rates, according to new Digital World Class ® HR research from The Hackett Group , Inc. NASDAQ: HCKT).
One key change will be the digital enablement of globalbusinessservices capabilities, creating digital operations that fast-track companies’ digital and technology-enablement aspirations. 1] Procurement operatingcost as a percentage of spend; for a $10 billion company, this represents procurement cost savings of $6.9
The project required a shift from on-premise systems to a 100% cloud platform while reducing operationalcost and, at the same time, enabling greater capabilities and scalability. Since its launch in 2016, the system has increased company efficiency in large and small ways.
Remarkably, finance is the only back-office business function that reduced costs as a percentage of revenue from 2023 to 2024 while investing more in technology. Consistent investment in technology is a crucial driver of finance’s efficiency. of their total operatingcosts to technology – 41% more than their peers.
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