Introduction to Shared Services & Global Business

As the global economy rapidly fluctuates and changes, businesses are under constant pressure to streamline operations, enhance efficiency, and reduce costs. One approach that has gained significant traction is the adoption of shared services and global business services (GBS). These models centralise and standardise various business functions to improve efficiency, reduce redundancies, and allow organisations to focus on their core activities.

Malaysia, with its strategic location, skilled workforce, and supportive government policies, has emerged as a prominent hub for shared services and GBS. This blog will provide an overview of these models and explore what makes Malaysia a key player in this sector.

What are shared services & GBS?

Shared services involve the consolidation of business operations, such as finance, human resources, IT, procurement, and customer service, into a centralised unit that serves multiple departments within the same organisation. The primary goal is to deliver these services more efficiently and at a lower cost than if they were managed separately within each business unit.

Global business services (GBS) is an evolved form of shared services. It goes beyond just cost-saving and efficiency, and focuses on delivering added value across the entire organisation. GBS integrates multiple shared services across various geographies and business units, often leveraging advanced technologies such as automation, data analytics, and artificial intelligence. This model not only enhances efficiency but also drives innovation and supports global business strategies.

Importance of shared services & GBS

Cost optimisation: Centralising services enables economies of scale, reduces redundancies, and optimises resource allocation, leading to substantial cost savings.
Enhanced efficiency: Standardised processes and technologies streamline operations, ensuring faster, more consistent service delivery.
Improved quality control: Centralised operations allow for better quality control, with consistent processes and a single point of accountability.
Focus on core competencies: By outsourcing or centralising non-core activities, businesses can focus on what they do best, driving growth and innovation.

Why Malaysia?

Malaysia’s reputation as a hub for shared services and GBS is built on several strong pillars:

Strategic location: Situated in the heart of Southeast Asia, Malaysia provides easy access to key markets in the region, including China, India, and other ASEAN countries. This makes it an ideal hub for businesses looking to serve Asia-Pacific markets.
Skilled workforce: Malaysia boasts a highly educated and multilingual workforce, with proficiency in English, Mandarin, and other regional languages. The country’s strong emphasis on education and vocational training ensures a steady supply of talent with the necessary skills for shared services and GBS roles.
Cost-effective operations: Compared to other regional hubs, Malaysia offers a cost-effective environment for businesses, with competitive wages and lower living costs.
Robust infrastructure: Malaysia has invested heavily in its infrastructure, offering world-class office spaces, reliable telecommunications networks, and advanced digital capabilities. The country's well-developed transportation network also supports seamless business operations.

Shared services and GBS are essential strategies for organisations looking to enhance efficiency, reduce costs, and drive innovation. Malaysia’s strategic advantages, including its skilled workforce, cost-effectiveness, and supportive government policies, make it an ideal location for these operations. As the global business landscape continues to evolve, Malaysia is well-positioned to remain a key player in the shared services and GBS sector, offering businesses a competitive edge in the region and beyond.

If you’re looking to hire within the Shared Services or GBS space in Malaysia, feel free to connect with me at douglas.uwi@ambition.com.my.