Future Ready Transitions for the AI era

Redesigning GBS Transition for Next-Generation AI

The evolution of GBS into a next-generation, AI-enabled enterprise demands a fundamental rethinking of how knowledge transfer, learning, and transition are approached. Historically, shared services have relied on a "lift and shift" transition methodology, where processes were moved as-is, followed by gradual optimization. Over time, this evolved to include upfront process transformation for early efficiencies, with large-scale transformation occurring after the activities had settled within a GBS setup.

However, the changing landscape of GBS, with its focus on gainshare and business outcomes, necessitates a complete reimagination of this foundational step. Transitioning to a modern GBS model should now prioritize technology-driven transformation and business impact from day one, making the process a business outcomes-led exercise rather than a cost-focused activity.

Reimagining the Transition Process

1. Technology-Led Transformation: Transition should no longer be a simple migration of activities. Instead, it must be the launching pad for leveraging cutting-edge technologies like AI, automation, and advanced analytics to redesign processes upfront. This minimizes manual interventions and maximizes operational efficiency.
2. Modernizing Ways of Working: The transition phase must also involve updating workflows to reflect modern, digital-first approaches. Outdated practices need to be replaced with innovative, streamlined processes that align with the organization’s long-term goals.
3. Focusing on Exceptional Activities: Instead of transitioning all transactional activities with plans for future transformation, organizations should focus on moving only those processes that are streamlined or ready for immediate transformation. This ensures that the GBS does not become a "dump yard" for unoptimized tasks, keeping teams focused on business-critical activities.
4. Embedding Business Outcomes in Transition: The transition process should emphasize delivering measurable business outcomes from the outset. By embedding transformation and outcomes as priorities, GBS organizations can confidently position themselves as profit centers rather than cost drivers.
5. Driving Confidence Through Digital Adoption: Effective upfront adoption of digital tools and technologies not only accelerates transformation but also boosts confidence in hiring the right domain experts. This ensures the GBS setup is equipped to deliver on its promise of business value and aligns its role with strategic organizational goals.

Delivering Strategic Benefits

• Embedding in Contracting Stage: Incorporating this approach during the contracting phase ensures that the momentum for upfront digital transformation is sustained. Clearly defining transformation milestones and aligning incentives with business outcomes right from the start fosters a strong commitment to achieving long-term value.
• Rapid ROI: A technology-driven, outcomes-led transition ensures faster returns on investment by embedding efficiencies and outcomes from the start.
• Elevated GBS Role: GBS teams can concentrate on core, high-value activities, reinforcing their role as strategic enablers instead of transactional service providers.
• Strengthened Partner Relationships: For service providers, this approach positions them as true transformation partners, moving beyond resource provisioning to delivering measurable business value.
• Promoting GBS as a Profit Center: By focusing on business outcomes and demonstrating strategic value, GBS can shift its perception from being a cost center to a profit-generating entity.

Dependencies for Success

To ensure the success of a reimagined GBS transition, clear dependencies must be established between client organizations and service providers:

Client Organization Dependencies:

• Strategic Alignment: Clients must provide a clear vision of business outcomes and strategic goals to guide the transition process.
• Data and Process Visibility: Ensuring timely access to accurate data and current process documentation is critical for identifying transformation opportunities.
• Stakeholder Commitment: Active participation and sponsorship from senior leadership are essential to drive alignment and decision-making.
• Change Readiness: Clients must foster a culture of adaptability and openness to digital transformation among their teams.

Service Provider Dependencies:

• Domain Expertise: Service providers should bring in highly skilled domain experts to guide technology-led transformation and align processes with business goals.
• Technology Enablement: Providers must leverage cutting-edge tools and platforms to execute seamless and efficient transitions.
• Proactive Collaboration: Providers need to establish transparent communication and collaborative workflows with the client organization.
• Outcome-Based Planning: Service providers must align their strategies with the client’s desired business outcomes, ensuring measurable impact from day one.

Building a Transformation-Led Future

Redefining transition as a strategic enabler ensures that GBS evolves into a next-generation enterprise delivering exceptional value. Critical success factors to enable this shift include establishing a robust governance model that maintains alignment with business outcomes, tracks transformation milestones, and fosters continuous improvement. This governance model should:

• Monitor Progress Against Outcomes: Regularly evaluate progress against clearly defined business outcomes to ensure the transition is on track to deliver value.
• Facilitate Stakeholder Collaboration: Establish communication channels for active collaboration between clients, service providers, and leadership teams.
• Enable Agile Decision-Making: Create a framework for rapid decision-making to address challenges and seize opportunities during the transition.

Redefining transition as a strategic enabler ensures that GBS evolves into a next-generation enterprise delivering exceptional value. By embedding transformation at the heart of the transition process, organizations can unlock the full potential of their GBS setups, achieving long-term success in an AI-driven world. This shift solidifies GBS as a center for business outcomes and a critical pillar of organizational growth.