Head of Global Business Services at ABB, Krakow, with nearly 25 years of experience across top companies like DSM and PwC. Peter specializes in building and transforming high-performance teams across processes and geographies.
CEO and Founder of HighRadius, a Fintech enterprise SaaS company which leverages AI-based Autonomous Systems to help companies automate Accounts Receivable and Treasury. Sashi’s leadership has secured the trust of 200+ Global 2000 companies.
Podcast Summary: Six Million Dollar Questions every GBS Leaders want to Know
Million Dollar Question #1: Captive Centers versus Outsourcing, in your view which model is better in deploying shared services?
Passionate about a captive model, mainly because ABB’s GBS is quite heavy and complicated
It is challenging to pass on the complexities to an outsource company.
If you have in-house systems, it becomes part of your culture, and also creates better career opportunities within larger organizations
With a captive model, the relationship with the customer becomes more intertwined
Once well-standardized, there are pockets of non-captive areas such as repetitive work that can be delegated to external companies
Million Dollar Question #2: Peter when ABB decided to create its largest GBS center in Krakow, you were heavily involved, so what’s your take on what companies should do, lift and shift first or standardize the process first and then lift and shift?
It all depends on where you are on your journey
If you do not have the luxury of time, lift and shift is the better choice
The more ERPs, global and local applications you have, the more complex you are as a company and it becomes challenging to standardize first
Once you have placed the processes into fewer locations, you get a holistic view and standardization becomes feasible and easier.
Million Dollar Question #4: What do you think is the future of GBS? One of the things that always comes up or debated is how GBS can be a revenue driver, instead of the traditional cost-cutting unit, what are your thoughts on it?
You have to put the customer always in the center of what you are doing
Also making sure the quality that you are delivering is not going at the same rate as the cost
You have to keep the cost set at a certain level and the quality higher.
If you ask How?
Ensuring that the cash is getting paid in time can save a good amount of cost since overdue can shut down factories and stop production for hours
Follow up on customer disputes, and maintain overdue at a bare minimum
Ensure that you’re not having too many things out there that don’t actually belong to you as a company
The ABB Story-
ABB went for a decentralized model a year ago (since 2020)
The centralized GBS model or the “glue” ensures to not just deliver the bare minimum but also to keep running critical processes
It ensures that businesses identify what value is being created by the shared services on a periodic basis
I call it the customer arena or the customer-centricity that decides the rhythm of GBS towards the business