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Overview of Shared Services Globalization in Asia Pacific Region
 

Overview of Shared Services Globalization in Asia Pacific Region

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The key benefits of Globalization are cost savings. However, the growing trends suggests the changing perception of Shared Services as strategic business units for service & operational excellence

The key benefits of Globalization are cost savings. However, the growing trends suggests the changing perception of Shared Services as strategic business units for service & operational excellence

Create job enrichment & augment skills of internal support employees and customers of the service

To meet the changing landscape of business, companies are expanding the use of shared services for processes in more complex and knowledge-oriented areas that have traditionally been closer to business i.e. R&D, Engineering, Sales & Marketing, Analytics etc

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    Overview of Shared Services Globalization in Asia Pacific Region Overview of Shared Services Globalization in Asia Pacific Region Presentation Transcript

    • Overview of Shared Services Globalization in APAC (Executive Summary) October 2013 This report is solely for the use of Talent Neuron clients and Talent Neuron Subscribers. No part of it may be circulated, 1 quoted, or reproduced for distribution outside the client organization without prior written approval from Talent Neuron.
    • Talent Neuron Copyright and Disclaimer Copyright The material in this report is copyrighted. No part of this report prepared by Talent Neuron can be reproduced either on paper or electronic media without permission in writing from Talent Neuron. Request for permission to reproduce any part of the report may be sent to info@talentneuron.com. Customers are welcome to use an unlimited number of copies of the materials contained within this report. Furthermore, customers may copy any graphic herein for their own internal purpose. Talent Neuron requests only that members retain the source name/logo mark on all pages produced. Please contact our Talent Neuron account manager at +1-408-716-8432 for any help we may provide. The report herein is the property of Talent Neuron (A Zinnov LLC Company). Beyond the membership, no copyrighted materials of Talent Neuron may be reproduced without prior approval. Disclaimer All the information contained in this report is obtained through proprietary technology aggregation algorithms, human experts, network of domain experts, discussions with industry leaders, public and confidential information sources believed to be reliable. Talent Neuron makes no representations or warranties regarding the errors, omissions or completeness of any information contained herein and shall have no liability for the same. The report is provided solely for informational and marketing purposes and opinions must not be construed as advice, recommendations or endorsements. The reader of the report is advised to conduct an independent evaluation and form conclusions with respect to the information provided.
    • Topics Covered in the report 1 Overview 2 Captive Trends (Available in Full Report) 3 F&A Landscape & F&A Globalization (Available in Full Report) 4 HR Globalization and Sales Operation (Available in Full Report) 5 Procurement (Available in Full Report) 6 Business Function Talent Pool Split (Available in Full Report) 7 Case Examples (Available in Full Report) 8 Key Challenges (Available in Full Report) 3
    • Overview Cost savings along with enhancing process efficiency are two main factors due to which companies globalize their Shared Services Insights Key Drivers for Shared Services Globalization Impact Level  The key benefits of Globalization are cost Cost Savings Enhancing efficiencies through standardization of services & processes savings. However, the growing trends suggests the changing perception of Shared Services as strategic business units for service & operational excellence  Create job enrichment & augment skills of Support corporate strategy Enable flexible growth Access to talent Access to new markets Sources: Talent Neuron Quarterly Events & Talent Neuron Surveys 2012 & 2013 internal support employees and customers of the service  To meet the changing landscape of business, companies are expanding the use of shared services for processes in more complex and knowledge-oriented areas that have traditionally been closer to business i.e. R&D, Engineering, Sales & Marketing, Analytics etc Talent Neuron 4
    • Overview Companies have been increasingly off shoring/outsourcing their support functions Globalization Maturity of various functions HIGH F&A IT* R&D* Globalization Rate Customer Support Human Resources Procurement Today companies have matured globalizing their R&D and IT activities Sales Operations Marketing Sales LOW Laggards Process such as lead identification, requirement analysis and delivery management are expected to be increasingly globalized Rapidly Growing Mature MATURITY Source: Talent Neuron Talent Neuron 5
    • Overview Countries across APAC, EMEA and LA are preferred locations with their unique advantages and disadvantages Ireland Eastern Europe China India Costa Rica Egypt Malaysia Philippines Sri Lanka Brazil South Africa Australia Current ‘hot’ Global locations Argentina Potential alternatives Key Cities Source: Talent Neuron - Metro Manila - Bangalore - Chennai - Gurgaon - Hyderabad - Cebu City - Mumbai - Kuala Lumpur - Selangor - Dalian - Chengdu - Guangzhou - Johannesburg - Krakow - Colombo - Shanghai - Beijing - Glasgow - Wuxi - São Paulo - San José Talent Neuron 6
    • Overview India, Philippines and China lead the pack of countries that are suitable for globalizing Shared Services Cost Attractiveness Vs Globalization Suitability HIGH Canada Globalization Suitability India China MEDIUM Ireland Australia Singapore Philippines Poland Spain Czech Republic New Zealand Mexico Russia Chile Argentina Brazil Turkey Costa Rica Ukraine LOW LOW MEDIUM HIGH Cost Attractiveness Note: Recent dollar appreciation has enabled India and Philippines to increase the cost arbitrage Talent Neuron 7
    • Captive Trends In the recent past, India has garnered a lion’s share in terms of number of Global In-house Center setups with diverse set of models Captive centers (GICs) per geographic region Activities per geographic region India # of Centers China Rest of Asia CEE+Russia Others 100 90 146 80 70 60 80 52 50 40 52 30 20 5 India China 11 Rest of South Africa Asia America Source: Zinnov Research, Prof. Illan Oshri 9 CEE & Ireland Russia & Wales 22 10 0 2 10 6 28 29 6 Talent Neuron 8
    • Key Challenges Attrition and lack of experienced talent with domain knowledge are key challenges companies are facing in the global centers/operations • Attrition in most companies has ranged between 8%-22% in the last 3 years • Increased competition for talent from service providers and lower compensation levels are key reasons Attrition • Lack of domain expertise and proper understanding of regulatory, quality and security compliance processes Right Levels of Training Process Adherence • Organizations are not able to determine the right training (process training, spoken/written language training and cultural sensitization training) programs for their staff Key Challenges • Lack of career progression, low compensation and minimal customer interface lead to low morale amongst shared services employees • Employees are not culturally well aligned to the parent organization Language Expertise Culture and Morale Domain Knowledge • Hiring talent for translation-related jobs is difficult ,and this in turn hinders the process efficiency • Scaling language experts to the required level normally takes time and this impacts the quality of work. • Since the industry is yet to attain maturity, companies find it difficult to hire professionals with about 8-10 years experience Source: Interviews with key industry stakeholders at leadership levels, Talent Neuron Talent Neuron 9
    • To Access the complete Report. Sign-up for a Demo Account http://talentneuron.com/demo_signup.php Recent White Papers Storage Domain - Attrition Trend Comparison Report http://www.talentneuron.com/article.php?art _id=247&access=1 Global Location Niche Skill-Set Insights Share your views Our thoughtful Insights on Talent Talent Related Videos Follow us on Twitter Talent Neuron Slideshare Channel http://www.talentneuron.com/article.php?art _id=234&access=1 Big Data Talent Overview http://www.talentneuron.com/article.php?art _id=207&access=1 Follow us on Linkedin Subscribe to our Weekly Newsletter:Subscribe now 10
    • Using Big Data principles, Talent Neuron Platform provides powerful insights on Talent, Location, Cost, Peer Group Footprint, Current Trends and Employee’s profiles Talent Analysis 520 + Cities 360+ Skills Employee Profile Analysis 7,500 + Companies 12,000 Unique Data points per city Peer Trends Talent Neuron Latest Trends & Related News Cost Analysis ~3,200 Universities 20.5 Million Professionals Location Analysis University Analysis 1111
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