Shared services and GBS locations: A strategic outlook

Location selection for GBS organizations is not a one-time decision. According to Deloitte’s 2023 Shared Services and Outsourcing Survey, three-quarters of GBS leaders are planning to refine their global footprint now or in the near future. The survey respondents are primarily seeking greater cost savings and expanded access to talent, as competition in many GBS markets has put increasing pressure on both factors.

As GBS leaders develop their footprint or reassess their existing sites, which locations will best support these objectives and offer a more attractive competitive environment within the GBS sector? After decades of sustained GBS growth around the globe, there are no simple answers to the question. Few markets have been left wholly untouched by GBS deployments.

The best approach today is to target a location that will be sustainable for the GBS organization over the longer-term time horizon. In addition to the core location factors that we assess in our business doing location strategy work—such as talent, risk, and cost—we have observed three strategic considerations for selecting a sustainable GBS location in recent years.