Orchestrating Global Business Services: the enabling role of digitalization
Albert Plugge (KPMG Netherlands)
S. Nikou (TU Delft - Responsible Marketing and Consumer Behavior)
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Abstract
Acting in a dynamic market, organizations experience global competition, face Environmental, Social, and Governance (ESG) requirements, they must keep pace with rapid technological developments, and be resilient to handle geopolitical turbulence. To maintain their competitive position in the market, organizations use Global Business Services (GBS), which includes Shared Service Centers (SSC), to respond to customer demands adequately. GBS is considered to be a complex model, and various factors need to be orchestrated continuously to ensure proposed benefits. However, it is unknown which factors affect the implementation of GBS from a holistic perspective. Importantly, it is assumed that digital technologies may overcome GBS implementation challenges. Based on an international study, the authors identified six factors that form a part of an organization’s GBS orchestration capability, namely: plural sourcing strategy, business services portfolio, customer orientation, modularized business processes, information technology (standardization) and governance (decision rights). In addition, we find that various digital technologies are applied that overcome GBS implementation challenges. Our findings contribute to the effective implementation of GBS by practitioners.