The idea of using shared services to connect companies in several time zones may seem completely alien and unrealizable even two decades ago. However, this concept is now a common practice in the global corporate world. Thousands of companies around the world rely on shared or outsourced services to improve their processes and optimize their productivity. But that’s not all. Some major brands have taken an even more innovative approach to the concept of shared services. Instead of independently operating multiple shared service hubs and managing outsourcing providers, these companies have implemented global business services, an evolution of the traditional shared service model.
What Are Global Trade Services?
Global commercial services, commonly abbreviated as GBS, refers to centralized service delivery models designed to serve many business areas and improve service delivery for participating companies.
Why Are GBS Services Essential for Modern Businesses?
Reduction Of Operating Costs
Maintaining many shared service hubs can be costly for your business. The operating costs will be even higher if your company manages a significant number of suppliers in each center.
Fortunately, you can avoid these unnecessary operating costs by switching to global business services.
GBS brings together several brands that outsource various products and services. With this model, a company does not have to procure all commercial equipment or maintain a permanent workforce if its income does not allow it. It could simply outsource these services from the ecosystem.
Cross-border peril management
Certainly, the management of a multinational company can provide significant advantages. In particular, it allows you to increase your sales by targeting a wider market. In addition, the operation of a company abroad gives a sense of pride and increases the attractiveness of your brand.
However, there are several peril. One of these pitfalls is late deliveries due to UNFORESEEN interruptions in the supply chain caused by factors such as customs controls or natural disasters.
This is another area where global business services can be useful.
Increased sales forecasts
We have just pointed to increasing revenues as one of the advantages of using global business services. Service companies, in particular, can rely on this model to increase their profits.
For example, it is relatively easy to start an immigration consulting company in any country. Success in this industry can come even earlier if your company operates in a global business services environment.
