10 Shared Services Trends Shaping the GBS Industry in 2025
In today’s ever-evolving business landscape, shared services have transcended their traditional role as mere cost centers to become strategic enablers of digital transformation and operational agility. The trends identified in the Auxis and SSON reports reveal a paradigm shift where efficiency and cost reduction are now paired with value creation and innovation. Below, we explore the 10 key trends that are shaping the future of the GBS industry in 2025.
1. Cost Reduction and Service Excellence
Cost optimization remains a key driver for GBS, supported by an extensive network of over 7,000 captive centers and 3,000 outsourced centers worldwide. However, companies are realizing that simply cutting costs is no longer sufficient. There is a growing focus on achieving operational excellence and measurable outcomes, transforming these centers into strategic partners that drive both innovation and efficiency throughout the organization.
2. Creating Value and a Customer-Centric Focus
The traditional view of shared services solely as efficiency tools is evolving towards a more strategic orientation. Value creation is now measured by customer and employee satisfaction, as well as the ability to provide real-time insights and decision support. This shift is pushing SSOs to broaden their roles—from performing purely transactional tasks to becoming true business enablers.
3. Consolidation of the Global Business Services Model
The Global Business Services (GBS) model is emerging as the preferred operational structure. By integrating multiple functional areas under one roof, GBS not only centralizes processes but also fosters cross-functional collaboration and the adoption of advanced technologies. With 85% of organizations already embracing this model or planning to do so, the trend underscores a clear move toward globalized and innovative operations.
4. Expanded Scope and Diversification of Functions
The evolution of shared services extends well beyond traditional areas like Finance, HR, and IT. SSOs are now expanding into strategic functions such as advanced data analytics, master data management, and high-level technology support. This diversification opens new opportunities to enhance customer experiences and streamline critical processes across the business.
5. Multi-Location Strategies and Talent Sourcing
In response to talent shortages, many organizations are adopting multi-location operational strategies. By leveraging regional strengths and diversifying geographical presence, companies can rebalance workloads based on shifting market and geopolitical conditions. This approach not only enhances resilience but also provides access to highly skilled professionals from various parts of the world.
6. Growing Demand for Outsourcing: Talent Over Cost
Although outsourcing has traditionally been driven by cost reduction, access to skilled talent now takes center stage.
• Key Insights:
- 50% of SSOs rely on outsourcing to meet their goals, with about one-quarter planning to increase outsourcing volumes in 2025.
- Hybrid models that combine in-house and outsourced teams are the norm for 58% of organizations.
• The Shift:
- Amid ongoing talent shortages, 63% of shared services leaders now cite access to talent and skills as the primary driver for outsourcing, overtaking cost efficiency.
- This trend is leading companies to choose partners who not only offer cost savings but also bring innovative technologies such as AI and automation to drive digital transformation.
7. The Rise of NearshoringThe pursuit of greater agility and resilience is driving the nearshoring trend, particularly in Latin America.
• Strategic Advantages:
- 90% of GBS leaders in Latin America are either currently operating in the region or plan to do so within the next three years.
- Countries like Costa Rica, Colombia, and Mexico offer significant cost savings—averaging between 30% and 50%—alongside access to a highly qualified talent pool and cultural alignment with North American markets.
• Benefits:
The proximity and similar time zones facilitate smoother collaboration and help mitigate risks associated with traditional outsourcing models based in Asia.
8. The GenAI RevolutionDigital innovation is reshaping shared services, with Generative AI (GenAI) emerging as a top investment priority.
• Impact:
- By Q4 2024, nearly 80% of SSOs had implemented GenAI tools, a dramatic rise from just 10% in 2023.
- GenAI applications are transforming areas such as customer support via intelligent chatbots and document processing, significantly enhancing service speed and quality.
• Complementary Technologies:
- While Robotic Process Automation (RPA) continues to play a vital role, GenAI is setting a new standard by freeing up human resources for more strategic tasks and enabling better decision-making through data insights.
9. Advanced Analytics for High-Value ServicesData analytics is pivotal in transforming large volumes of enterprise data into actionable insights.Evolution:
More than 50% of SSOs have progressed to advanced analytics capabilities, moving from historical reporting to predictive and prescriptive analysis.
• Strategic Applications:
Analytics optimizes core processes like procure-to-pay and order-to-cash, while also enhancing talent management and overall operational performance.
• Investment in Talent:
Prioritizing skills in data management and analytics is now essential for recruiting and training efforts across the sector.
10. Addressing Talent Challenges with Innovative RecruitingHuman capital remains the cornerstone of any successful digital transformation. SSOs are adopting new recruitment and retention strategies to meet the demands of a highly competitive talent market.
• Key Focus Areas:
- 63% of shared services leaders rank talent skills and capabilities as more critical than technology tools.
- In-demand skills include problem-solving, digital proficiency, data analytics, process design, and adaptability—vital for managing increasingly complex tasks.
• Modern Strategies:
- To counter high turnover, especially among Gen Z, companies are revising their employee value propositions by offering flexible work models, career development opportunities, and continuous learning.
- Nearly half of SSOs now implement location-agnostic recruitment practices, broadening their access to a diverse talent pool.
Conclusion
The future of shared services and the GBS model in 2025 is defined by a seamless integration of technology and talent, transforming cost centers into strategic partners. The trends—from operational efficiency and expanded service scopes to the rise of nearshoring, the GenAI revolution, and innovative talent management—outline a clear roadmap for sustainable growth.
For business leaders, the challenge is to evolve and adopt models that combine efficiency, innovation, and strategic insight. By doing so, organizations can navigate a rapidly digital and global environment, ensuring long-term resilience and success.
Disclaimer: The opinions expressed in this content are strictly personal and do not reflect the opinions or positions of any company I am currently associated with or have been affiliated with in the past.
Source: https://www.auxis.com/10-shared-services-trends-shaping-the-gbs-industry-in-2025/
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