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7 Steps To Effective Service Catalogue WP NEW BUENO
7 Steps To Effective Service Catalogue WP NEW BUENO
Multi-Functional or Specialized? 5
Make or Buy? 6
Market Trends 9
In borderless, technology-driven and ultra-competitive economies, Shared Services Centers are strategic to deliver
bottom-line results.
3
Four burning questions to be addressed
to move to next Generation of SSC
4
Multi-Functional or Specialized?
Function
n
1
Function
1
Function
2
Function
2
Function
3
Function
3
Function
4
Function
4
BU BU BU BU BU BU
1 2 3 1 2 3
5
Make or Buy?
When coming to consolidation of Typical drivers for SSC set up include: Typical drivers for Business Process
Back Office Services, two options are Outsourcing include:
Willingness to keep process
considered : Captive SSC or Outsourcing
knowledge in house Decision that back office activities
partnership .
are non-core and would be better
Concern of loss of company process
For many companies, Shared Services handled by a third party specialist
knowledge to a third party
Centers are evaluated at the same time Business is under intense cost
as outsourcing to determine which Perspective to develop owned
pressure and needs to deliver
solution fits better for Back Office Shared Services Centers
immediate results
Services. offering in the market through
professionalization Internal capabilities are missing to set
There is no typical ‘good choice’. up and run a captive SSC
The ‘best choice’ totally depends on Opportunity to improve internal
organisation situation, footprint, strategy operations before considering Investments and changes are too
and experience in centralization, etc. outsourcing activities high to be achieved internally
Decision on Service
Delivery Model depends
Shared Services Centers: Business Process Outsourcing:
on maturity, ambition
Building a Business Asset Partnering for efficiency
and culture
of an organization
In House Outsourced
Processes control and Business knowledge within Savings made by outsourcers are higher
the company Contracts are based on continuous improvement
+
Lower risk on data privacy by a better control of of productivity
End to End information chain Ability to compare performance with market
Easy to backtrack if necessary standards
Global footprint enables to do internally Better control of people turnover and wages
Labor arbitrage benefice taken even with a limited
global footprint
_
Time for implementation and responses to change Cross knowledge limited between Business and
longer than outsourcing Functions
Risk of transferring inefficient processes in the Mid-term engagement on performance can be
new center very constraining
Success highly depending on local management Long-term client relationship management
involvement and motivation mandatory to achieve success
6
Onshore , Offshore, what Mix?
Why do you need a sourcing Illustration of an hybrid and global model
strategy?
American Hub
in Mexico Global Hub in India
In-Source Outsource
Four main models exist on the market. The best solution is probably a
combination of 2,3 or 4 models:
Most advanced sourcing
strategy consists in I. In-house onshore services III. In house offshore services
hybrid models. Processes at the forefront of Processes are handled by a
attention, with potential brand, captive organization as they
compliance and business impact present a competitive advantage,
data access constraint or internal
capabilities
7
Picking the best location
While implementing Shared Services Criteria traditionally regarded as being There is no magic bullet as far
Centers, site selection is the most more important than others are: as location studies are concerned
critical part of the process and multiple as each company is facing very
criteria must be considered. Inflation as it measures continued different challenges depending on
financial attractiveness over the long size, geographical footprint as well
Dimensions to select the best location run as industry – for example trade
are: compliance considerations have
Political and economical increased relevance in the Defense
Financial attractiveness environment, especially with and Energy industries
regards to currency devaluation and
People skills and availability international movement of cash
Financial attractiveness
Inflation
Compensation costs
Flexibility
Real estate costs
Infrastructure & Telco costs
Tax and regulatory costs
People skills and availability
Shortlist of countries Language capabilities
Labor force availability
Business environment Education
Government support Cultural compatibility
Infrastructures
Global and legal maturity
IP security and privacy
Political & economical environment
8
Market Trends
European
Languages Leaders
Challengers
Global
Centers “own country
North SSC”
America
+ Mauritius
.
Spanish
speaking
countries
Some countries have invested heavily or Morocco are attracting more and Asia has maintained its position
in the Shared Services industry with a more shared services centers thanks as a preferred destination for global
three-pronged approach focusing on to incentive programs targeting low to shared services centers, with India
education (technical and languages), medium size organizations that do not still commanding a significant share of
infrastructures and incentives. This has reach the FTE thresholds for incentives outsourcing volumes for transactional
resulted in the emergence of regional in Eastern Europe. activities thanks to a favorable
champions and challengers in each labor market and the availability of
geographical zone. Latin America Shared Services engineering and finance graduates.
Centers market targets Spanish Countries like the Philippines or
Traditional players in the Euro- speaking countries and to a lesser Malaysia are positioning themselves
Mediterranean region focus on the extent the United States - it does not as credible alternatives, through
regional market, where local language show the same concentration as the government support as evidenced
is a key requirement. They are located Asian and European markets, with by incentives and investment in
in Eastern Europe, with Poland, Costa Rica, Chile, Mexico, Argentina infrastructures. This has enabled them
Romania or the Czech Republic and Brazil all representing a sizeable to gain market share while India’s own
showing between 30% and 50% annual share of the business and Colombia position is eroding.
growth in FTE employed in international positioning itself as a challenger.
shared services centers. While market Political and economical stability require
saturation is not an immediate concern specific focus when selecting a site in
in Eastern Europe, Mediterranean the region, as evidenced by the recent
countries such as Spain, Portugal devaluations in Argentina, Venezuela
and Mexico.
France Poland Romania Portugal Morocco India Philippines Malaysia Costa Mexico Argentina Colombia
base 100 Rica
Support Function 100 40-30 30 -25 55-45 30-20 15-10 20-15 40-30 40-30 25-15 40-30 40-30
Salary average (K€)
2010-2011 Salary 3 6,1 5,6 2 0 7-8 6 - 7 4 13 4
evolution (%)
9/2010-9/2013 N/A€ -7% -4% N/A Stable -36% Stable Stable 4% Stable -34% Stable
fixed rate vs. € (PLN) (RON) (MAD) (Indian (PHP) (MYR) (CRC) (MXN) (ARS) (COP)
Rupee)
Labor cost arbitrage competitive advantage of low cost countries will carry on in the foreseeable future
9
How new digital technologies empower SSC?
Digitization is a powerful lever to Technologies evolution enables
enhance Service Delivery, enabling breakthrough in SSC delivery and
processing of most transactions with services model:
embedded controls in place; reducing
time cycle, improving access to To go on providing cost effective
transactions with must-have
information, providing accurate,
commodities
relevant and reliable data through With new digital
To propose more cutting-edge
real-time interfaces, analytical
services around big data
technologies, there is
reporting, decision support, performance
analytics and competency-based room for cutting-edge
management, … processes innovation in operating
To enhance user experience and models.
collaboration through digital
technologies
10
How close are you to the Next Gen?
Regardless of your shared services journey, you are in one of these three maturity levels:
Efficiency
y
How new
digital Focus on automation Focus on optimization Focus on new services
(OCR, e-document (digital workflows, mobile (big data analysis) and
technologies
management, etc.) SaaS, real time reporting, service to the client (web
empower cash collection tools…) portals, ‘SSC CRM tool’ )
SSC?
Maturity
11
Contacts
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consulting organization of the Capgemini Group, specializing is one of the world’s foremost providers of consulting,
in advising and supporting enterprises in significant technology and outsourcing services. The Group reported 2012
transformation, from innovative strategy to execution and with global revenues of EUR 10.3 billion. Together with its clients,
an unstinting focus on results. With the new digital economy Capgemini creates and delivers business and technology
creating significant disruptions and opportunities, our global solutions that fi t their needs and drive the results they want. A
team of over 3,600 talented individuals work with leading deeply multicultural organisation, Capgemini has developed its
companies and governments to master Digital Transformation, own way of working, the Collaborative Business ExperienceTM,
drawing on our understanding of the digital economy and and draws on Rightshore®, its worldwide delivery model.
our leadership in business transformation and organizational
change. Learn more about us at www.uk.capgemini.com
Capgemini Consulting is the strategy and transformation consulting brand of Capgemini Group. The information contained in this document is proprietary.
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