The Middle East is at the cusp of a new revolution in how businesses operate and grow. Over the past few decades, we’ve seen the shared services model transform from a simple cost-saving measure into a strategic enabler of innovation and agility. Now, with the rise of Digital Global Business Services (GBS), the region has an unparalleled opportunity to take this model to the next level. The question is no longer, “Why shared services?” but rather, “Why here, and why now?”
From back office to digital leader
Shared services have their roots in the 1980s as a means to centralise back-office functions like HR and finance. Today, the game has changed entirely. Leading organisations are leveraging Digital GBS to drive both efficiency and value creation by integrating governance, locations, and business practices across all shared services and outsourcing activities across the enterprise.
This development is highlighted in a 2025 report by SSON Analytics, which found that 84% of global shared services leaders now see their operations as vital hubs for innovation, decision-making, and process automation.
The Middle East, with its ambitious digital transformation goals and expanding non-oil sectors, is primed to leapfrog traditional approaches. Countries like Saudi Arabia are already integrating cutting-edge technologies like AI, robotic process automation (RPA), and blockchain into shared services as part of broader economic diversification efforts, as highlighted during the Saudi Shared Services Week 2025 event held in Riyadh earlier this month.
It’s important to remember that Digital GBS implementation isn’t just about automating routine tasks; it’s about creating intelligent ecosystems where data flows seamlessly across departments, driving faster and more strategic decisions.
A work revolution for Gen Z and Millennials
Yet, the shift isn’t purely technological. The newer generation of workers is demanding more than just efficient processes; they’re looking for meaningful work and opportunities to grow. Millennials and Gen Z now make up over 50% of the workforce globally, and their expectations are shaping how organisations attract and retain talent.
This is where Digital GBS implementation offers a unique edge. By automating low-value tasks, shared service hubs free up employees to focus on innovation and strategic contributions. Upskilling and cross-functional opportunities become integral to the employee experience. This is in line with the national visions of countries like UAE and KSA, which emphasise human capital development by promoting initiatives designed to create a future-ready workforce.
To compete for the best talent, organisations must pair technological advancements with robust development programmes that foster leadership, creativity, and fulfilment. Otherwise, they risk losing out in a global labour market that prizes opportunity over mere stability.
Avoiding common pitfalls
Still, not all attempts at GBS transformation succeed. Lessons from other regions underscore the risks of poor implementation. Research from Socitm highlighted that fragmented governance, lack of clear objectives, and misaligned management cultures are the leading causes of failure in shared services.
The Middle East has a chance to avoid such missteps by building on existing insights. Clear governance models, tailored approaches to diverse management styles, and an unwavering focus on measurable outcomes will be critical. Organisations must also invest in change management to ensure employees are on board with this transformation.
Why here, why now?
The case for Digital GBS in the Middle East is compelling because it aligns seamlessly with the region’s current trajectory. Economic diversification demands operational excellence, and global competition for top talent necessitates modernisation. The momentum behind initiatives like Saudi Vision 2030 has already put the scaffolding in place. Now it’s up to organisations to seize this moment to innovate, optimise, and lead on a global stage.
The Middle East is no stranger to turning ambition into reality. Just as it has pioneered advancements in urban architecture, clean energy, and digital governance, the region now has the opportunity to redefine what operational efficiency means. By combining cutting-edge technology with a people-centric approach, Digital GBS can become a centrepiece of this vision. The time to act is now. With bold leadership and thoughtful execution, the Middle East can not only catch up to global standards in shared services but set the benchmark for others to follow. After all, the future of work isn’t just about efficiency. It’s about creating systems that are as dynamic, resilient, and innovative as the people who power them.
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