What is the Global Business Services (GBS)?
Global business services (GBS) is a term for centralized service delivery models that encompass shared services (captives), outsourcing, and centers of excellence (COEs) to serve multiple business units. Scope can include finance, IT, HR, and procurement, as well as other functions, and can be delivered onshore or offshore.
The GBS incentive targets investors that are looking to locate their shared services centres, customer service centres or centres of excellence in South Africa to service offshore markets. The incentive applies for both captive and outsourced operations. With as little as a commitment to create 30 new jobs3 targeted at youth, within three years and a three-year fixed-term contract for offshore activities, a project could qualify for the GBS cash grant.
Potential benefits of Global Business Services models
- Improved alignment with the business strategy, digital strategy, and growth agenda
- A global approach that can improve visibility, control, and risk management
- Scale to drive cost and operational efficiencies on a global level across functions and business units
- Benefits from one integrated organization with end-to-end processes and clear accountability
- Improved analytics and insights from access to cross-functional, enterprise-wide data
- Becomes incubator for digital ways of working and catalyst for broader, enterprise-wide digital transformation
- An agile organization with flexible scalability to respond to changing business needs such as mergers, acquisitions, and divestitures
- Becomes a source of talent / workforce needed for the future
It is notable that the GBS incentive is available for remote working employees, assuming that all conditions are met. This flexibility, and responsiveness, has enabled the incentive to continue responding to the demand for South African- based business services despite constraints to business activity created by the COVID-19 pandemic.
