BRUSSELS, Oct. 2, 2025 /PRNewswire/ -- Business services industry emerges as a dual powerhouse for European economy, being global shock absorber and strategic enabler of long-term transformation. 40 million people work in business services in Europe, contributing EUR 3.5 trillion to the EU 27's GDP - 20.4% of the total. The latest ABSL report outlines transformation scenarios and a roadmap for policymakers and business leaders to 2030.
Business services stand at the heart of Europe's economic reinvention with the 3Ts - Talent, Technology, and Transformation. Once quiet back-offices and cost centers they've become dynamic growth drivers for European economy.
Continental mosaic
Europe's business services industry reflects a wealth of complementary capabilities across regions, building on scale and diversified network. Western and Northern Europe lead in corporate HQs and high-value digital services, while CEE offers substantial capabilities and growing expertise. This interplay fosters diversification, nearshoring, and cross-border collaboration, enabling countries to leverage unique strengths.
Talent: key differentiator and biggest bottleneck
While leading hubs are thriving, smaller ecosystems face talent shortages, infrastructure deficits and diverse regulatory frameworks. This disparity highlights the urgent need for workforce transformation, as availability of skilled professionals is essential for competitiveness, especially in knowledge-intensive business services.
Despite challenges, regional diversity within Europe fosters unique opportunities for specialization and scaling, highlighting the necessity of strategic coordination across contexts.
Transformation trajectory: from classic GBS and GBS 3.0 to GenBS
Europe leads in knowledge-intensive business services exports (52.6% globally) but lags in AI adoption and service platformization. The report outlines a shift from Global Business Services (GBS) to GBS 3.0 and GenBS in response to challenges.
Classic GBS focuses on cost savings via labor arbitrage. GBS 3.0 integrates end-to-end processes with automation, analytics, and cloud, emphasizing value creation. GenBS, powered by generative AI, redefines the sector with hyper-automation and platform-based delivery.
Business services as strategic integrators
While undergoing their own transformation, business services are now central to profound changes in six industries key for European competitiveness: banking, pharma, automotive, energy, telecom, and aerospace & defense. They drive cross-sector innovation, support R&D, close talent gaps, and embed governance. Rather than trimming costs, they underpin large-scale digital initiatives and help industries reinvent business models.
Towards resilient growth: three scenarios
The ABSL report outlines three scenarios for Europe's business services industry by 2030:
- Optimistic: Europe becomes a global hub through coordinated policy, AI investment, and deep integration.
- Fragmented: GenBS thrives in large firms but fails to scale, causing talent drain and stagnation.
- Cautionary: Europe loses autonomy to external providers, isolating hubs and eroding jobs.
Europe stands at a pivotal moment of opportunity. Business services are already one of its strongest champions, driving growth and innovation across the continent. In the next five years Europe can position itself as the world's leading business services hub and secure sustainable global leadership. Unlocking this potential requires us to embrace change, invest in talent and technology, and make the leap toward Generative Business Services, says Jacek Levernes, Chairman, ABSL.
ABSL Business Services Industry in Europe 2025 report: here
Media Contact: anna.jankowska@omc.com
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