Dr. Constantin Montana / Tim Ehrich

Digitised shared service centers: the next evolutionary step.

Dr. Constantin Montana / Tim Ehrich

Digitised shared service centers: the next evolutionary step.

Understanding the potential of SSCs as value creators.

CONTENT

Setting up and running shared service centres (SSCs) has been common practice among multinationals for more than 15 years now. In view of the purpose of SSCs – allowing companies to outsource simple tasks which are not part of the core business to low-cost locations abroad – it is no surprise that, during the planning phase, the focus is often on cost savings; as a result, the potential of SSCs as value creators is frequently passed over. Given the challenges posed by digitisation, however, in our view at e&Co., this potential should be a central concern: SCC planning must address both of current requirements and those which can be expected in the future, while existing facilities need to be adapted to the new digital environment.

ACT NOW – KEY TAKE-AWAYS:
- Examining existing SSC strategies as regards location, the contents of service portfolio, and opportunities offered by digitisation.
- Challenging costs and quality delivered by current SSCs (full-cost performance analysis including inefficiencies and displaced tasks).
- Reorientating service portfolios to take account of increasing demands placed by customers on service quality (software development).
- Turning SSCs from cost centres into profit centres.
- Future-proofing by working towards sustainable profitability.

THE AUTHOR

Economist Dr. Constantin Montana is an expert of standing in sourcing advisory and IT strategy with almost 10 years of consultancy experience, mainly advising DAX30 companies and German hidden champions. His work to date has given him a rich experience of working capital optimisation, supply chain management, and after-sales.