Global business services (GBS) has always been an effective way for global companies to reduce cost and increase process efficiency, but as technology improves and developing nations rapidly evolve, the GBS model has undergone some of its own shifts.
At its GBS facility in Queretaro, Mexico, global consumer foods company Kellogg has been leveraging an abundance of young, high-quality talent, some of whom have been transitioned into the main organization, showing that GBS can be a strong pipeline for career advancement.
Steve Rudderham, VP of Global Business Services at Kellogg Company, tells us how Queretaro is driving its share of the GBS organization, and how talent and technology is contributing to the company’s direction.
Nearshore Americas: Where does Mexico stand in your GBS profile, and how is Queretaro contributing to the organization’s goals?
Steve Rudderham: There have been some real success stories in our Queretaro facility, both with some permanent work and some temp work. There was some financial reporting that we required, with regard to lease accounting, which had to be done in a very short period of time. Ramping up in one of the centers was potentially problematic, but we didn’t want to go toward third party staffing, so instead set up some short-term hires to go through it, made up of 30 or so high energy millennials. These guys are extremely positive and proactive, feeding off each other and feeling like part of the Kellogg organization very quickly.
At first, I was hesitant of getting short-term workers in, especially for financial reporting, but after seeing them work together, they felt like long-term employees, and some were even hired permanently into Kellogg. Queretaro is seeing a lot of external investment, mainly because entry level talent like this is of top quality.
We’ve added a little bit of work within accounts payable in Queretaro, which now has around 320 people. They’ve proved through experience that they can get the work done, so people at the Michigan head office are now a lot more comfortable sending work offshore. People have realized the comforts that the usual Nearshore benefits bring, such as time zone, culture, and skills. The value of the peso right now also makes costs more competitive on the world stage.
Queretaro has taken the lead on training and development globally, with leadership development programs especially. There’s a full mentoring program from Kellogg leadership and certain individuals have been sponsored and sent through the organization. This has been an enticing career path for any short-term employees that we bring on.
Source: Nearshore Americas