Latest News  

Eastern Europe SSCs account for 2% of the global industry

While the majority of world's shared service centers (SSCs) are located in Western Europe (43%) and North America takes 30% of the market share, Eastern Europe account for just 2% of the global industry, reveals the Deloitte's 2015 Global Shared Services Survey consulted by Outsourcing Today

2015-11-05 12:28:57 - by Bogdan Tudorache

Most important finds of the survey are that "geographic barriers are decreasing as demonstrated by the increase in multi-regional SSCs indicating that organizations are finding ways to address concerns such as languages skills, time zone coverage and regulatory requirements."

About 61% of respondents standardized processes after moving to an SSC. All of the respondents indicated that shared methods and tools were the primary benefits of a GBS model. Most of the SSC interviewed have less than 100 employees (57%), while organizations with 100-250 employees take 16% of share, bigger organizations taking the rest (251 to 500 take 13% and more than 500 – 15%).

A strategic choice is being made to balance cost optimization and proximity when standing up operations. This likely suggests either greater comfort with enhanced connectivity or an increase in scope of higher value-add activities, which companies prefer to locate closer to existing operations

Organizations' shared services geographic scope is expanding, as evidenced by the inclusion of markets such as Greece, Africa and the Middle East; demonstrating that virtually every country can be considered as a source of talent around the world.

At the same time, organizations are skipping the single-function concept and pursuing multi-function SSCs at the start of their shared services journey. Organizations are also more and more adopting hybrid shared service models and customizing their service delivery models by function.
While some organizations are able to serve all of their business units or segments with traditional back office functions, they are still working toward a cross business unit or segment-wide strategy for functions from middle and front office functions.

"By leveraging lessons learned from mature SSCs, new SSCs are more likely to start with an integrated Global Business Services (GBS) model, leapfrogging the mature single-function SSCs. Although the definition of GBS varies in the marketplace, organizations are moving toward GBS and adopting models that incorporate a mix of multifunction, multi-location, multi-region, multi-business, and multi-sourced,"reveals the study.
Also, the GBS leader is becoming a confirmed and recognized role in organizations, with significant responsibility across multiple functions including continuous improvement and global process ownership
"GBS is becoming a true enabler of the end-to-end process view and is driving significant end-to-end process improvements."

Although cost savings is a driver of SSC adoption, it should not be the sole focus as lack of service responsiveness could cause decreased adoption during a time when SSCs must use scale to remain
competitive and relevant, say the authors.

"While business unit customers want SSCs to continue focusing on the basics, they are also asking for more — from response timeliness to cost of service — to facilitate the transition into higher value added activities into existing centers."

At the same time, organizations are leveraging service level agreement (SLA) conversations and scorecards to focus time and energy on continuous improvement. As SSCs become more global in nature, organizations will need to implement chargeback methodologies and leverage transfer pricing to effectively address tax implications and regulatory requirements.

To achieve the average annual productivity targets, organizations are building continuous improvement into the culture of the SSC and leveraging methods like Lean and Six Sigma to realize those benefits.

As the focus on benefit realization increases, organizations are following very disciplined approaches to benefit identification and tracking, which is helping organizations to gain greater headcount savings and productivity improvements.

Some organizations are still not incorporating tax as a strategic element in their SSC decision making process, which could be leading them to leave money on the table.

As SS/GBS organizations aspire to become advisors and collaborators to the business, they will be challenged to become more familiar with the business to be able to deliver higher value activities (e.g. predictive analytics).

"Given the potentially high value derived from continuous improvement activities, organizations are focusing on enhancing them by dedicating teams and training resources to find and implement more opportunities," reads the study.


The 2015 survey garnered 311 respondents headquartered in 35 countries consisting of 1,000+ Shared Service Centers (SSCs). Over 50% of respondents had organizations over 10,000 full time
equivalents (FTEs). Manufacturing is the top industry represented in the biennial survey, accounting for approximately 27% of respondents. Tech/Telecom, Financial Services, and Consumer Products are the next most represented industries accounting for 13%, 11%, and 10% of respondents respectively About 70% of survey respondents are headquartered outside of the United States.


0 COMMENTS ^ Go back to Top
WRITE A COMMENT ^ Go back to Top
 
Your email address will not be published.
Nickname
Email
Comment
Validation Code
   
 
 
NEWS
Bitdefender signs accord with American router producer Netgear

The software producer Bitdefender signed a technology licence partnership with the American equipment producer for Netgear networks, which will include in its products security solutions for smart devices, deve

 Read Full article »
Laurentiu Lazar, promoted as Managing Partner at Colliers International Romania

Laurentiu Lazar, Senior Partner, Investment and Valuation Services, will take over as the new Managing Partner of the real estate consultancy company Colliers International Romania, effective as of March

 Read Full article »
Upcoming event brings Retrospective in Labor Legislation on February 15th, at Bucharest

Outsourcing Today, together with Fine Law, organize The 2017's Retrospective in Labor Legislation event on February 15, 2018 at Caro Hotel Bucharest, a knowledge sharing event dedicated to the latest significan

 Read Full article »
A.T. Kearney: The widening impact of automation impact the business model of outsourcing

According to a recent article of A.T. Kearney and based on the findings of Global Services Location Index for 2017, the developing nations have long enjoyed the economic benefits of other countries' offshoring.

 Read Full article »
Freelancing – a solution to staff shortages for companies

According to Smartree Romania, a leading provider in Romania of outsourcing payroll services and personnel administration, freelancing has become more present among Romanians lately. Working with freelancers ca

 Read Full article »
Kaspersky Lab: Targeted attacks on radar for industrial organisations

Of the industrial companies that participated in the IT Security Risks Survey , every fourth has faced a variety of cyberattacks. Worryingly, one of the fastest growing types of threat among the multitude targe

 Read Full article »
E-commerce: Romanian companies sell online on their own, above EU average

A share of 16 percent of all enterprises located in the EU and employing at least 10 people received orders via a website or apps (web sales) in 2016, Eurostat reveals. At the same time, more than 8 in 10 enter

 Read Full article »
FAB LAB Iasi nominated at CEE Shared Services and Outsourcing Awards in Warsaw

Iasi city, in Eastern Romania, together with Conduent company and FAB LAB IASI project have been nominated at CEE Shared Services and Outsourcing Awards, to take place at Warsaw at the Hotel Intercontinental o

 Read Full article »
Endava and Velocity Partners announce merger to become truly global IT player

The merger between Velocity Partners, an innovative software development company with a strong presence in Latin America, and Endava, a global technology company with a sustained consistent growth and offices a

 Read Full article »
ACADEMY+PLUS: The partnership with private sector enables the forming of IT specialists meeting market demands

ACADEMY + PLUS, the free programming school, officially opened its activity in Bucharest. The inauguration takes place in partnership with the private sector and aims to train 140 IT specialists within the fram

 Read Full article »
 
 
MOST READ ARTICLES
» ROMANIAN OUTSOURCING AWARDS FOR EXCELL...
» Romanian Outsourcing Awards for Excell...
» Molson Coors started to grow its busin...
» Romania's IT industry could grow at an...
» TELUS International: How customer serv...
» Capgemini to open new office at Suceav...
» ABB opens the first robotics training ...
» Comdata to buy four subsidiaries of Fr...
» Four companies represent Romania in De...
» Committed to growth
 
EDITOR CHOICE
TELUS International: Chatbots - The pros and cons of automated customer service

Learn what key factors to consider before introducing chatbots to your customer service strategy

 Read Full article »
Why AFI Tech Park is the best value for money office project in Bucharest(P)

Based on the insight that location is a strong criteria employees take into consideration when choosing their workplace, AFI Europe Romania is currently developing AFI Tech Park, the newest office destination i

 Read Full article »
Shifting the workplace perspective towards high-end added value

This month, OUTSOURCING TODAY organized The Workplace of the future in IT and Outsourcing at Caro Hotel Bucharest, a new concept event meant to connect fast-growing corporate tenants from IT and outsourcing ind

 Read Full article »
Andrei Romanescu, Managing Director of Veeam Romania: Outsourcing sector, a decade evolution

Since the early 2000s, this sector has grown at a significant rate (about 20-30% per year). The industry has evolved from focusing on cost and labour arbitrage to adding value – therefore the growth is not so

 Read Full article »
TELUS International Europe: Discover how successful smart-home providers deliver exceptional customer service

Key Takeaways

• Internet of Things (IoT) connected home devices are making the contact center and customer service more important than ever. • A friendly approach and positive attitude are import

 Read Full article »
Latest News  
 
about us | newsletter | contact | members area
Copyright © 2015 by Diplomat Media Events Design by Diplomat Media Events