The Crisis and Shared Services

As 2008 attracts to an end, the signs for the global economic system in 2009 are, to mention the least, inauspicious. But this downturn might not affect all geographies equally – and this holds genuine for the shared offerings and outsourcing space as much as for the broader economic system. To get a higher-defined photograph of how different parts of the arena are reacting in another way to the most significant surprise to the financial device because of the Wall Street Crash, we convened a series of nearby roundtable debates. The first – getting the view from Asia – befell at the end of November and turned into chaired by Deloitte’s Hugo Walkinshaw; as the transcript indicates, for mature SSOs at least at the same time as the effect of the crisis has but to play itself out absolutely, there are indeed possibilities strewn among the challenges…

Attending have been:

Hugo Walkinshaw (chair)
Principal Shared Services Asia Leader

Chen Theng Aik
SVP & Head Asia Pacific Operations

Rodrigo Martins
General Manager GBS Asia
General Electric

Erik Moller Nielsen
GM Global Service Centres (Philippines)

The Crisis and Shared Services 1

Hugo Walkinshaw: In phrases of the way mainly your SSC is including value – and I’d want to ask Rodrigo to kick us off in this one – what variations are you seeing due to the present day weather in terms of new stuff you’re being asked to address, or things that have been going a bit slower or were now not so pronounced which can be suddenly coming to the floor?

Rodrigo Martins: We simply see an elevated hobby from organizations in becoming members of our shared offerings company. In challenging instances like these, the cost that a shared services institution brings to the table is even greater obtrusive. From all angles you examine our group, there is value – from the excessive exceptional of being an employer specialized in procedures which might be critical to strolling a enterprise (no much less crucial beneath the current economic situations, by way of the manner), from a price financial savings viewpoint given the size in which we perform, and from our capacity to provide offerings making use of our infrastructure of human beings, techniques and platforms already in the vicinity.

For all of these reasons, I see a preferred boom in call for our services. Likewise, it is essential to notice that we are constantly involved with productiveness, continuously searching out enhancing high-quality and performance in everything we do. In times like this, it’s miles even greater critical. On a more tactical level, we supplied our groups with increasingly more equipment and evaluation that made it simpler for them to control and higher control their value base. From our angle, we’re assisting our clients, the GE organizations, and from their perspective, that is a value-added provider they are receiving from us.

Hugo Walkinshaw: So most of that is largely focusing extra and placing greater emphasis on things that can be already modern-day. Maybe there are a few conversations around whether this enterprise unit, or this manner, are available in or exit, and the present day situations are forcing the tempo on those choices?

Rodrigo Martins: Exactly that; greater of the identical, at the least for our agency. I accept that corporations see the fee in what we’re doing, so they want to come back onboard more and more. They know that we have the scale and that we can render actual carriers at a aggressive value, and that is a reasonable price for them at the stop of the day.

Hugo Walkinshaw: And in phrases of being asked to offer utterly new matters, or to head in new directions: are you seeing any of that but?

Rodrigo Martins: I don’t see that in GE. Probably because being an established shared carrier business enterprise, we have already got maximum, if no longer all, regular shared services offerings. We do have one service, which is noticeably new to our organization in Asia, Customs. This carrier helps businesses address imports and exports around the arena. But the carrier isn’t new; it was brought a few years ago within the Americas and is now being rolled out globally.

Chen Theng Aik: Because of the country we’re in now, we’re still taking into account our migration of activities to the SSCs inside the better-value Asian international locations. Our officials have been advised to look at headcount and headcount replacement very cautiously. It is getting more challenging for commercial enterprise gadgets, so there is more hobby for two motives. One is natural wage arbitrage and our potential to maintain to leverage that, so there is extended interest in shifting more activities over to us, and what changed into historically considered taboo – now not to be transferred over to shared services – should now all be at the desk. With our SSC in Malaysia, there is a huge wage arbitrage from the higher-price Asian nations.

Duane Simpson

Internet fan. Zombie aficionado. Infuriatingly humble problem solver. Alcohol enthusiast. Spent several months exporting UFOs in Jacksonville, FL. A real dynamo when it comes to exporting gravy in Tampa, FL. Spent 2001-2004 implementing saliva in Edison, NJ. Had moderate success getting my feet wet with junk food on Wall Street. Practiced in the art of building Virgin Mary figurines in Tampa, FL. Practiced in the art of marketing Roombas in Phoenix, AZ.

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