Shared Service Centers & Global Business Services

SSC and GBS models play an important role in the context of optimizing G&A expenses, as well as in optimizing other operational functions like sales or SCM – both in-house and, depending on the make-or-buy decision, as managed services (in the form of BPO – business process outsourcing – and BTO – business transformation outsourcing). Here, too, Roland Berger supports companies across all industries in implementing new SSC and GBS organizations and in transforming and optimizing existing ones. We provide end-to-end support throughout the entire process, from developing the strategy and selecting providers or locations to the actual implementation phase.

In high-cost regions like Western Europe and North America, SSC/GBS models are particularly useful as ways to achieve greater cost efficiency through the labor arbitrages they bring, but also the benefits they offer in terms of bundling, standardization, flexibilization, and digitalization. In addition, they offer the strategic advantage of facilitating business scalability, as well as the integration of new acquisitions or the carve-out of divisions.

At Roland Berger, we help companies introduce new SSC/GBS organizations and also transform and optimize existing ones. Our portfolio of services covers the following areas:

• Feasibility and benefit studies
• Maturity assessments
• Introduction of SSC/GBS models endto-end, from strategy to implementation
• Transformation and performance optimization of SSC/GBS organizations
• Dedicated change management for SSC/GBS transformations
• Sourcing advisory regarding service providers for managed services (BPO, BTO)

The steps we follow for the introduction of SSC/GBS models are outlined below. These will depend on the company's respective maturity level and starting point:

1) The strategy and planning phase determines whether GBS structures should be applied and identifies the relevant areas. There are additional factors to consider besides pure cost efficiency, such as a critical minimum size, the autonomy or separation of individual business units, or regional aspects.

2) Design und blueprint are crucial for the success of SSC/GBS structures. This is where the key parameters are defined, such as:

• Make-or-buy
• Delivery model
• Regional structure
• Management concept
• Relevant functions and allocation of tasks per function between GBS and regional units

We discuss these questions with our client in a structured manner, based on defined criteria and drawing on our experience of a wide range of companies with established SSC/GBS structures.

The choice of SSC/GBS locations often plays a special role, as does the selection of an external managed service provider, depending on the model. We provide support here, too, by applying our market knowledge and a proven selection and evaluation model.

3) In the transition and hypercare phase, the aim is for processes to be transferred and stabilized with as little disruption as possible. The focus here is on recruitment, documentation, training and work shadowing in order to ensure that knowledge is transferred as securely as possible and any impact on business operations is mitigated. There are various options here, and these differ mainly in whether the process status quo is transferred over and then optimized in the GBS or whether the transformation takes place before processes are moved over to the GBS.

4) Once processes have been successfully stabilized is when the continuous improvement process begins and it never really ends. The goal of successful GBS is to achieve annual productivity gains through standardization and bundling, and in particular through technology and digitalization. The aim here is to realize technology-driven efficiency gains in all areas and to leverage the economies of scale of a GBS organization.

Introducing GBS structures for the first time – but also optimizing and expanding them later on – represents a significant change in processes within a company, which is often accompanied by unpopular job losses in core business regions. Thus, in addition to stringent project management, comprehensive change management is also necessary to successfully shape the transformation and realize the anticipated efficiency gains.

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