@ Vikash Sharma | Sr Journalist
New Delhi, 1st November 2023: In recent years, the business services sector (BSS) has emerged as a cornerstone of global economic growth and a vital source of employment opportunities. Gi Group Holding’s Global Search & Selection team explored the BSS landscape in 15 countries, identifying the top challenges and strengths that characterize this rapidly evolving market.
Click on the link to download the full report: https://whitepaper.grafton.com/business-services-report
BSS market is estimated to be worth over € 1 trillion, with a significant portion attributed to the BPO and ITO markets. The industry has experienced consistent growth, driven by an increasing demand for cost-effective and efficient solutions across various industries. This sector employs millions of professionals worldwide, offering a diverse range of job opportunities and contributing significantly to the global workforce.
Comprising shared services centers, global business services, business process outsourcing (BPO), information technology outsourcing (ITO), and research and development (R&D) centers, BSS market is undeniably an attractive and vital sector: it drives cost efficiencies for organizations and has the capacity for fostering innovation and enabling business resilience and adaptability.
The business services sector is characterized by several geographical clusters, each with its unique advantages and reasons for attracting BSS organizations:
• Central and Eastern Europe (CEE). This region, including countries like Poland, Hungary, and Romania, has become a preferred destination for SSCs and R&D centers due to its well-educated workforce, competitive costs, and strategic location within the European Union.
• India and the Philippines. As two of the world’s largest BPO and ITO destinations, these countries offer a large, skilled, and cost-effective talent pool, coupled with strong English language proficiency and a favorable business environment.
• Latin America. Countries such as Brazil, Mexico, and Colombia have emerged as BSS hubs, with a growing number of global companies establishing centers in the region due to its proximity to the United States, time-zone alignment, and availability of skilled labor.
• North America. The United States and Canada are home to several high-tech and R&D centers, driven by the presence of leading technology companies, access to top talent, and strong government support for innovation.
In addition to region-specific trends, BSS companies worldwide are facing 3 main challenges: digital transformation, talent management and increasing complexity of regulatory and compliance requirements.
These challenges have two main effects:
1. transition of organizations model from simple shared services centers (SSCs) and process-oriented services to global business services (GBS) models and centers of excellence. This brings about significant changes in the way organizations manage their human resources, employer branding, and recruitment strategies and, also, in the way organisations operate, as hybrid work models emerge.
2. focus on people. Attraction and retention of highly skilled professionals becomes a top priority such as their upskilling and reskilling, in order to maintain a competitive edge, and their engagement, in order to keep workforce motivated, loyal and committed to organization success. As a consequence, HR management strategies need to adapt, for example developing a comprehensive workforce plan to identify and bridge talent gaps while ensuring effective succession planning or shifting from traditional performance evaluations to a more agile, continuous feedback system focused on development and growth, or identifying and nurturing potential leaders who can drive company through changes. An effective Employer Value Proposition (EVP), understood as unique combination of benefits, rewards, and opportunities that an organization offers its employees in return for their skills, expertise, and commitment, becomes key factor for talent attraction, retention and motivation helping organizations differentiate themselves in the competitive talent market, ultimately leading to better financial outcomes through increased productivity, innovation, and reduced turnover costs.
Another worldwide trend arose after COVID-19 pandemic is the spread of hybrid work models that bring both challenges and opportunity for business service sector companies. The experience so far has shown how hybrid work can improve flexibility, give access to a wider talent pool and allow cost savings through reduced office space requirements. On the other hand, the combination of remote and in-office work causes issues in terms of employee experience, with disparities in accessing in resources among workers, difficulty in fostering collaboration and team cohesion and increased management complexity. By carefully considering the pros and cons of hybrid work, BSS organizations can build a more agile, diverse, and resilient workforce and develop a well-balanced work model that supports employee well-being and productivity. Definitely one of the top challenges for managers is creation of a culture of trust and collaboration among remote and in-office employees.
A quick snapshot of the Report – Business Service sector in India:
– Strongest Business Services Segments in India: Gain insights into the sectors that are leading the way in Business Services.
– BSS Trends of 2023: Discover the latest trends that are shaping the industry landscape this year.
– Future of BSS in India: Explore projections and insights into the future of Business Services in India.
– Top Three Unique Assets: Learn about the top three unique assets our talent pool possesses, making India an incredibly attractive location for foreign investment in Business Services.
– Advice to Future Investors: Receive expert advice for future investors who aspire to set up service/BPO centers in India
Maya Nair, Executive Director, Elixir Consulting(GI Group Holding Company) would like express her thoughts on the report she says “India’s distinct position in the Business Service sector is characterized by a dual emphasis on digitalization and a highly skilled, unique workforce well-versed in technology. This combination has propelled India to retain an impressive 65% share of the global outsourcing market. Organizations in India have harnessed the power of analytics and digital tools to enhance the potential of their existing talent pool, reinforcing their capabilities and bolstering their competitive edge.”
Discover full salary report and BSS key trends from India and other 15 countries “Business services 2023” report. https://whitepaper.grafton.com/business-services-report