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
Oracle hires 1000 sales representatives to boost cloud services in EMEA

Oracle announced 1000 new jobs in Europe, Middle East and Africa. Under the Change Happens Here banner, the company is hunting for the next generation of ambitious, driven, digitally savvy Sales Representative

 Read Full article »
Academy Plus programming school opens at Bucharest with 120 available places

ACADEMY+PLUS, the free of charge programming school launched three years ago at Cluj in partnership with École 42 in Paris, opens also at Bucharest with 120 available places to those who want to learn programm

 Read Full article »
AI to drive GDP gains of 15.7 trillion dollars with productivity, personalisation improvements

Global GDP will be 14% higher in 2030 as a result of AI – the equivalent of an additional 15.7 trillion US dollars, a recent research report of PwC states. This makes it the biggest commercial opportunity in

 Read Full article »
TotalSoft appoints Adina Gurgu as Chief Technology Officer

TotalSoft, one of the leading ERP and financial solutions providers internationally, announces the appointment of Adina Gurgu as Chief Technology Officer (CTO), who will be starting August responsible with spea

 Read Full article »
Czech ALEF Group acquires local company and enters Romanian market

Czech IT systems and equipment supplier ALEF Group announced it had acquired Romanian peer company Likeit Solution for an undisclosed sum.

 Read Full article »
3Pillar Global expands with third development center in Romania

US-based IT services provider 3Pillar Global will open the third development center in Romania this August, in Iasi, to be locatedin Moldova Business Center.

 Read Full article »
DB Global Technology reaches 800 people, 150 people joined this year

B Global Technology, Deutsche Bank's technology center in Bucharest, has reached the 800 staff milestone, with over 150 people joining the team in 2017.

 Read Full article »
Regional operations centers give Romania's real estate market a boost

With a 4.8 per cent GDP growth in 2016 and the highest estimated growth rate in 2017 among EU member states, Romania has become an increasingly attractive destination for regional operations centers.

 Read Full article »
Skanska puts 37 million Euro in the first phase of a new office project in Bucharest, Equilibrium

Skanska announced it secured 37 million Euro for the first phase of the office project Equilibrium located in the northern part of Bucharest, Romania, Barbu-Vacarescu area.

 Read Full article »
The Informal School of IT announces the expansion of its business in Brasov

The Informal School of IT, the most important project of alternative education and professional reconversion in Romania, is expanding its activity in Brasov, a press release informs.

 Read Full article »
 
MOST RECENT VIDEO
 
 
MOST READ ARTICLES
» ROMANIAN OUTSOURCING AWARDS FOR EXCELL...
» AI to drive GDP gains of 15.7 trillion...
» Michael Ringman, TELUS International: ...
» Bombardier: from Bucharest subway to t...
» Endava and Worldpay to create a center...
» TELUS International Europe: E-book: Ho...
» Romania, Europe's third and world's 13...
» EY: Work-life balance has become more ...
» TotalSoft appoints Adina Gurgu as Chie...
» Welcome onboard!
 
EDITOR CHOICE
EY: Work-life balance has become more difficult to be managed by one third of full-time employees in 8 large countries

EY's global survey of full-time workers in eight countries finds that one-third say managing work-life has become more difficult, with younger generations and parents hit hardest.

 Read Full article »
Welcome onboard!

By 2020, some 200.000 people are expected to work in business shared services in Romania, doubling the current employment portfolio enrolled in more than 120 companies operating BPO, SSC or ITO services. Howeve

 Read Full article »
Thierry Blain, SG EBS: Bringing teams to the next level

The journey of Societe Generale European Business Services began with the need for a strategic location to sustain and transform European operations of Societe Generale Group. The purpose was, from the early da

 Read Full article »
TELUS International Europe: Issue 3 - Customers First magazine! Strategy and innovation in travel and hospitality

The third issue of our Customers First magazine is now available! The latest edition is all about travel and hospitality, featuring insights from industry experts and top brands like JetBlue, Turo, Joie de Vivr

 Read Full article »
The future is now - Review of Romanian Outsourcing Summit, 2017

Romania delivers services in 25 languages with more than 100,000 specialists employed in the outsourcing industry and business services, and based on an estimated growth of 15-20 per cent, it is estimated to re

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