Unlocking new value in global business services

Citation

Justice, C. (2011), "Unlocking new value in global business services", Strategic Direction, Vol. 27 No. 11. https://doi.org/10.1108/sd.2011.05627kaa.012

Unlocking new value in global business services

Article Type: Abstracts From: Strategic Direction, Volume 27, Issue 11

Justice C. and Ceci lB.Financial Executive, June 2011, Volume 27 Issue 5, Start page: 28, No. of pages: 5

Describes how senior managers are taking a holistic view of their enterprises and pursuing advanced operating models designed to align all their companies’ services to the business strategy by developing such models that reflect the next level of maturity in global business services. Stresses that a key vulnerability of such an approach, which generally involves outsourcing to a country such as India, lies in the fact that the wages in such countries are increasing steeply (14% per year in India), making the cost savings currently achieved much less than those achieved in the past. Argues that, in determining how to proceed and identify opportunity in their organization, financial executives should consider a number of factors, including: sourcing relationships; services strategy; technology; organizational culture; geography; and overall maturity. Concludes that companies that have a good mix of tactical relationships for global delivery and which are generally organized by function rather than by process, are in a good position to realize significant value in an extended global enterprise (EGE) model.Article type: ViewpointISSN: 0895-4186Reference: 40AN398

Keywords: Business performance, Business planning, Economic performance, Financial performance, Financial performance, Industrial performance, Managerial strategy, Organizational performance, Organizations, Outsourcing, Performance measurement (quality)