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GBS in Post-Merger Integration: The Critical Engine for Systems Consolidation & Process Harmonization
- syazwinaagosasia
- 3 days ago
- 3 min read
Why GBS Is Essential in PMI
Mergers and acquisitions (M&A) are strategic levers for expansion, efficiency, and market growth. However, the true value of any deal is realized not at the signing table—but in the post-merger integration (PMI) phase.
In this critical period, organizations must quickly unify systems, align business processes, and scale operations efficiently. Global Business Services (GBS) has emerged as a strategic enabler of post-merger success, with Finance Shared Services Centres (FSSCs) playing a foundational role in delivering integration excellence.
In Malaysia, GBS centers are increasingly being used as integration engines—unifying fragmented systems and processes into a cohesive, data-driven operation.
How GBS Accelerates Post-Merger Integration
1. Systems Consolidation
M&A often results in multiple ERP systems, inconsistent platforms, and siloed data repositories. GBS provides the structure and governance needed to consolidate enterprise systems effectively.
Key activities include:
ERP standardization (e.g., SAP S/4HANA, Oracle Fusion Cloud)
Centralized data architecture and reporting frameworks
Elimination of legacy systems and IT redundancies
Example: A leading global chemicals manufacturer leveraged its GBS hub in Kuala Lumpur to consolidate 12 ERP systems into a unified SAP instance. The result was a 40% reduction in IT support costs and significantly improved data consistency across its regional operations.
2. Process Harmonization
Beyond technology, GBS harmonizes business processes across geographies, ensuring that workflows are standardized, measurable, and scalable.
Core GBS contributions include:
Alignment of P2P, O2C, and R2R process frameworks
Centralization of procurement and HR practices
Consistent service level agreements (SLAs) and key performance indicators (KPIs)
The benefits are improved internal compliance, better stakeholder visibility, and faster time-to-value in the integration process.
Case Study: Sunway Group’s Finance Shared Services Centre (FSSC) in Malaysia
Following internal consolidation efforts, Sunway Group—one of Malaysia’s largest conglomerates—established a centralized FSSC to manage over 300 subsidiaries across its business divisions.
Integration Strategy:
Deployed Esker for AP automation and e-invoicing
Streamlined invoice approvals and reduced cycle time
Instituted common finance policies across entities
Results:
50% faster invoice processing turnaround
40% reduction in physical documentation handling
Improved visibility, controls, and compliance
Source: Sunway FSSC Case Study via Esker
Best Practices: Embedding GBS in Your PMI Strategy
To fully leverage GBS in post-merger scenarios, companies should consider the following best practices:
1. Establish a GBS Integration PMO Embed a dedicated project management office within GBS to oversee transition planning, data migration, and stakeholder alignment.
2. Apply 'Lift-and-Shift, Then Optimize' Prioritize fast onboarding of business units into the GBS model—then drive enhancements through automation, analytics, and continuous improvement.
3. Standardize SLAs and Performance Metrics Unified KPIs across entities promote transparency, accountability, and cross-entity performance tracking.
4. Drive Change with People at the Center PMI is not just technical—it’s human. Clear communication, ongoing training, and strong executive sponsorship are critical to employee adoption and retention.
Why Malaysia Is the Right Location for Post-Merger GBS
Malaysia continues to attract attention as a GBS hub for multinational companies undergoing transformation or integration. The country’s strengths include:
Multilingual, multicultural talent with shared services expertise
Established shared service ecosystems in Kuala Lumpur, Cyberjaya, and Penang
Government support via MDEC, HRD Corp, and tax incentives
Robust infrastructure and cost-effective operating models
For MNCs consolidating operations in Asia-Pacific, Malaysia offers both regional reach and local resilience.
Final Thoughts
Post-merger integration success requires more than aligned leadership—it demands operational precision, scalable systems, and harmonized processes.
Global Business Services provides the structure to manage this complexity at speed. Whether integrating multiple ERPs or unifying finance functions, a well-orchestrated GBS strategy reduces disruption and accelerates value creation.
For PLCs, GLCs, and MNCs navigating M&A in Southeast Asia, embedding GBS into your PMI strategy is no longer optional—it’s essential.
Let’s Talk About Your Integration Strategy
AGOS Asia is Malaysia’s GBS transformation partner of choice. We work with public-listed and multinational organizations to deliver:
GBS and FSSC blueprint design
Systems consolidation and ERP transition support
Process standardization frameworks (P2P, O2C, R2R)
Talent assessment and upskilling programs
As industry experts, AGOS Asia is committed to guiding GBS organizations through their AI transformation journey. Whether you are exploring AI for the first time or looking to optimize existing implementations, our team is here to support you. Connect with us to discuss how AI can elevate your GBS operations. Reach out at contact@agosasia.com or visit www.agosasia.com to explore how we can help drive your AI strategy forward.
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