Treasury and Trade Solutions
Strategic Perspectives and Tactical Opportunities for Shared Service Centers
Fraser RossSenior PartnerDeloitte Consultinge: [email protected]
Contents
About the survey
Survey results:– Geography– Organization and governance– Scope– Operations– Journey and value
Copyright © 2013 Deloitte Development LLC. All rights reserved.2013 Global shared services survey results
About the survey
Copyright © 2013 Deloitte Development LLC. All rights reserved.2013 Global shared services survey results
The 2013 Global Shared Services survey attracted 277 respondents…
Manufacturing, 59
Consumer Products, 43
Financial Services, 37
Tech/Telecom, 35
Retail, 28
Health Care, 18
Energy, 16
Media, 14
Public Sector, 12
Travel & Hospitality, 11 Others, 4
– …representing organizations headquartered in 38 countries across the globe…
– …providing data for 870 Shared Services Centers (SSCs)
– Average revenue of participant organizations was approximately $10 billion
– 50% of respondents had over 10,000 FTEs
The organization’s primary industry sector?
Organization annual revenues?
29% 30%
18%23%
Less than $1B $1B to less than$5B
$5B to less than$15B
$15B +
Less than 1,000, 13%
1,000 to 10,000, 37%
10,000 to 25,000, 17%
25,000 to 100,000, 20%
100,000 and above, 13%
As used in this document, “Deloitte” means Deloitte LLP and its subsidiaries. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting.
Demographics
What is the size of your total organization in FTEs?
Copyright © 2013 Deloitte Development LLC. All rights reserved.2013 Global shared services survey results
Geography
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The organization’s Shared Service Centers locations?
India(58)
Korea (2)
Argentina
Brazil
Czech Republic
(11)
Romania(7)
Australia (18)
Singapore (9)
Malaysia(11)
Thailand (4)
Japan (6)China (31)
(21)
Chile(9)
Brazil (40)
Mexico(21)
United States(165)
Canada(39) United Kingdom
(51)
Spain (41)
France (9)
Switzerland (4)
Denmark (16)
Russia (6)
Norway (11)Sweden (21)
Ireland (8)
Italy (2)
Portugal (5)
Netherlands (26)
Germany (46)
Hungary(14)
New Zealand (1)
Poland (18)
Costa Rica (13)
Colombia(25)
South Africa (3)
Philippines (20)
Egypt (2)
Peru (1)
Slovakia (5)
Austria (2)
Mauritius (2)
Panama (2)
Bulgaria (3)
Qatar(10)
Belgium (6)
Bahrain (1)Bhutan (1)
Burkina Faso(1)
Dominican Republic (1)
Fiji (1)
Ghana(1)
Iceland (1)
Kenya (1)
Laos (1)
Lithuania (1)
Monaco(1)
Samoa(1)
Taiwan (1)
Uruguay (1)
Vietnam (1)
Estonia (2)
Finland (28)
40 + SSC’s 20 - 39 SSC’s 10 - 19 SSC’s 1 - 9 SSC’s No SSC’s
The number of SSCs in the U.S. is approximately the same, however, more were noted in Canada
compared to 2011
Significant increase in the number of centers in
LATAM, especially in South America The number of centers reported in Asia remained relatively
constant; however, a substantial increase was reported in India
More SSCs represented from Scandinavian and Eastern
subregions of Europe
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Provide services for a single country only, 36%
Provide services across countries, but within a single continent only, 34%
Provide services across two continents, 13%
Provide services across three or more continents, 18%
LATAM, 29%
E. Europe, 21%
APAC, 19%
W. Europe, 11%
US/Canada, 9%
India, 8%Other, 4%
What is the global reach of the SSC’s?
Decentralized , 33%
Regional centers , 41%
Hub and spoke , 26%
What is the predominant deployment model for your Shared Services organization?
What is the geographical coverage of your SSCs?
Geographies served based on maturity of center
68% 73% 71% 68% 70%
11%13% 13% 12% 4%
21% 14% 16% 20% 26%
< one year One year to threeyears
Three years tofive years
Five years to 10years
10 years +
One continent Two continents Three+ continents
Geography
What regions are being considered for a new SSC?
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4%
5%
7%
7%
14%
14%
14%
17%
17%
22%
23%
32%
19%
29%
33%
24%
32%
14%
36%
53%
35%
56%
Cultural synergies (nonlanguage)
Tax impacts/advantages
Regulatory/legal
Risk profile (political, social, etc.)
Close proximity to headquarters
Close proximity to currentoperations
Other
Language skills
Labor availability
Labor cost
Labor quality
Extremely important
Very important
The most important factors in selecting the current SSC location(s)?Geography
Location factors
• As seen in prior surveys, labor factors continue to drive the decisions on location selection• Labor cost continues to be an important consideration surpassing labor availability this year• Proximity to current operations increased in importance over the last two years, but remains a lesser driver• Other reasons for location selection included existing facilities and synergies with existing technology
infrastructure
Copyright © 2013 Deloitte Development LLC. All rights reserved.2013 Global shared services survey results
Geography
23%
15%
13%
13%
8%
China
Philippines
India
United States
Malaysia
From where are your SSCs providing services for China, India, and Japan?
65%
7%
7%
7%
5%
India
Malaysia
Philippines
United States
Finland
53%
9%
9%
6%
6%
China
United States
Malaysia
Philippines
Singapore
– 43% of respondents have SSCs that service Japan, Brazil, Russia, India, and/or China
– China and Brazil are nearly equally serviced by SCCs within and outside of the country
– The top cities in China with SSCs serving China are Shanghai, Beijing, Chengdu, Dalian, Guangzhou, and Tianjin
– India is predominantly serviced by SSCs within the country located in Bangalore, Gurgaon, Chennai, New Delhi, Kolkata, and Pune
From where are you serving China?
Countries serving Brazil, Russia, India, and China (BRIC) and Japan
From where are you serving India?
From where are you serving Japan?
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– Organizations appear to be developing the ability to service multiple continents from one center—and driving towards making global centers a reality
– Newer entrants, across company size, are learning from the lessons of others and are increasingly more adventurous in functional scope, alternative delivery, and locations considered
– Organizations have become more open in their location selection for SSCs as compared to 10 years ago; the dispersion of centers across the world is much greater than it was 10 years ago with newer centers opening across a greater array of countries and cities in the global theatres
– Of the BRIC countries serviced by SSC’s, China and Brazil are serviced equally by in-country and out-of-country SSCs. India is predominantly serviced by SSCs within the country and Russia from SSCs outside of the country.
– Labor factors continue to drive location selection for SSCs — and cost remains a perennial top driving factor
Trends in geographyGeography
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Organization and governance
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Organization and Governance
How are SSCs organized and managed?
75%
75%
74%
69%
62%
44%
39%
33%
7%
Lower management cost
Shared governancestructure
Shared continuousimprovement initiatives
Lower overhead expenses
Ability to share staff
Improved career models
Ability to use single SLAs
Combined vendormanagement
Other
24% 15%
17% 33%
21%21%
38% 31%
Orgs with SSCs < five years Orgs with SSCs > five years
– Over 50% of respondents have Shared Services for multiple functions that are at least co-located if not managed as a single SSO
– While more mature organizations had multiple functions in Shared Services, the functions were still physically separate and separately controlled
– Respondents with newer centers had a higher percentage of functions combined and managed as a single organization
– Co-location has driven lower management and overhead costs while enabling shared governance and continuous improvement
How are your SSCs organized and controlled? Do organization and control vary by maturity?
Shared Services organizationWhat have been the benefits of housing multiple functions in one location?
20%
24%
22%
34%
• SS for one function only
• Multiple functions• Physically separate• Separately controlled
• Multiple functions• Co-located• Separately controlled
• Multiple functions
• Co-located • Managed as a
single Shared Services organization (SSO)
A
B
C
D
A
B
C
D
A
B
C
D
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The predominant reporting relationship for SSCs?
57%46%
16%
14%16%
30%
9%
5%
8%
9%
8%
11%
11%24%
34%
– Over 50% of respondents cited reporting relationships to either the function or in-country leadership. However, almost 25% of respondents have transitioned to an independent SSO
– The percentage of respondents with SSCs reporting to an independent SSO increases as you start to manage multiple functions as a single organization
What is the predominant reporting relationship for your SSC?
When multiple functions are in Shared Services, where do they report?
What have been the benefits of housing multiple functions in one location?
A
B
C
D
A
B
C
D
• Multiple functions
• Physically separate
• Separately controlled
• Multiple functions
• Co-located
• Separately controlled
• Multiple functions
• Co-located
• Managed as a single SSO
Primary ownership by
function
Primary ownership by in-
country leadership
Primary ownership by in-region leadership
Primary ownership by
one of the business
units/segments
Independent shared services
organization
A
B
CDE
A
B
C
D
E
36%
23%
8%
11%
22%
Organization and Governance
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Who has responsibility for your SSCs?
– Similar to the 2011 survey, almost half of the respondents have created a formal position to manage their SSCs
– CFO continues to be the primary top executive responsible for the Shared Services organization according to respondents
– 50% of the organizations surveyed that had multiple functions co-located created a leader for the overall Shared Services organization
Has a position been created to manage the collection of SSCs across your organization?
To whom does the most senior leader of your Shared Services organization report?
SSC responsibilityIs a position more likely to be created if you have multifunctions co-located?
Yes, 44%
No, 56%
CFO, 48%
CEO, 16%
Controller, 9%
COO, 7%
Other, 6%
CHRO, 5%CAO, 5% CIO, 3%
37%
37%
50%
49%
63%
63%
50%
51%
For one function only
For > one function, physically separate,separately controlled, & managed
For > one function, physicallycombined,separately controlled, & managed
For > one function, physically combined,managed as a single SSO
Yes No
Organization and Governance
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The primary SCC charge back mechanism?
5%
5%
8%
9%
13%
19%
30%
50%
Services are charged based onmarket pricing
Penalty pricing / charges
Services are cost adjusted basedon performance
Other
Costs are allocated based onrevenue
No billing or allocation of costscurrently exists
Costs are allocated based onheadcount
Services are charged based onvolume/services
Organization and Governance
• Services charged based on volume continue to be the primary chargeback model used by respondents, up from 42% in 2011
• The survey indicates there are minimal differences in chargeback models between those that mandate and those that utilize an opt-in model
• The primary difference with a mandated model is that a higher percentage of organizations do not allocate costs at all — 29% versus 16% of those with an opt-in model
Chargeback models
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Organization and Governance
SLAs are common and somewhat effective tool for governance?
– Over 75% of respondents use SLAs to drive governance
– 96% of respondents find SLAs at least somewhat effective
– For those respondents that find SLAs very effective, 95% revisit them at least annually if not more frequently
Does your Shared Services organization leverage SLAs to drive governance?
SLAs
How often are they revisited?How effective do you find SLAs?
Yes, 77%
No, 23%
Very effective, 29%
Somewhat effective, 67%
Not effective, 4% Rarely, 13%
Quarterly, 12%
Biannually, 18%Annually, 55%
Every five years, 3%
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Who is driving SSC’s end-to-end process efficiency and effectiveness?Organization and Governance
54% 54%
49%46%
44% 43%
38%35%
33% 32% 32%
38%35% 35%
39%36%
20%
29%
22%25%
20% 20%23% 22%
4%
11%
32%
6%2%
15%12%
5%
Own and updatepolicies
Proactive processredesign /continuous
improvement
Request changes totechnology
configuration
Monitoringperformance metrics
Revising roles andresponsibilities
Help incorporatenew business units /
locations
Responsible forissue resolution
Managing andreviewing SLAs
Global Process Owners Regional Process Owners Process Councils ERP / Tech Application Owner
– The survey indicates global and regional process owners are the most common roles used to drive efficiency and effectiveness across an organization’s SSCs
– Global process owners play the largest role in driving policy, process, and technology changes and continuous improvement
– Respondents indicated a wide variety of responsibilities for regional process owners with issue resolution being a primary role
Governance roles
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Trends in organization and governance
– As organizations move from single function to multifunction, there is a movement away from functional or country reporting relationships towards reporting into an independent Shared Services organization
– Even if organizations are not managing the functions in Shared Services as a single Shared Services organization, they are seeing numerous benefits from co-locating the functions
– Chargeback mechanisms vary widely, however, there is an increasing number of organizations that are not billing or allocating costs at all — specifically those organizations that mandate Shared Services
– Organizations are also using penalty pricing as a means to drive behavior between the SSC and its customers
– SLAs continue to be an important tool in governing the relationship between the SSC and the business, however, they require at least annual monitoring to remain effective
– Organizations are increasingly using global process owners to drive process efficiencies and standardization across the Shared Services organization
Organization and Governance
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Scope
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What is the scope of your Shared Services Organization?Scope
Which functions are in your organization’s SSCs? Overall scope
• The traditional back office functions, Finance, HR, and IT, continue to be those most often moved into Shared Services according to respondents
• There was an increase in the number of respondents with Legal and Real Estate in Shared Services
• 43% of the SSCs represented in the survey have more than one function in their center
• 85% of respondents have at least one multifunctional center
• The more mature the center, the higher number of functionsper center
Average number of functions by SSC maturityWhat percentage of the SSCs are multifunctional?
93%
62%
52%
41%
39%
35%
27%
20%
18%
17%
Finance
Human resources
Information technology
Procurement
Customer service/Support
Tax
Real estate/Facilities Management
Legal
Sales/Marketing
Supply chain/Manufacturing support
One function, 57%
Two functions, 15%
Three functions, 8%
> Three functions, 20%
60% 60% 58% 57%41%
22% 16% 13% 14%
13%
3%5% 9% 10%
9%
14% 20% 19% 19%37%
0%
25%
50%
75%
100%
Less than oneyear
One year to lessthan three years
Three years toless than five
years
Five years to lessthan 10 years
10 years orlonger
One function Two functions Three functions > Three functions
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Scope
Outside of the local business, how are FTEs distributed?
43%
36%
35%
30%
27%
25%
24%
16%
15%
12%
8%
26%
8%
17%
12%
13%
14%
14%
6%
23%
12%
8%
8%
9%
13%
8%
21%
23%
19%
14%
38%
30%
48%
44%
47%
54%
41%
47%
60%
51%
Supply chain/Manufacturing support
Sales/Marketing
Customer service/Support
Human resources
Legal
Finance
Procurement
Information technology
Real estate/Facilities management
Tax
Local Corporate Knowledge-based SSCs/ COEs Transactional SSC/Outsourced
• The survey indicates Real Estate/Facilities and Finance have the largest percentage of FTEs with a transactional SSC or outsourced model
• IT and Procurement have the largest percentage of FTEs leveraging knowledge-based SSCs or centers of excellence (COE)
• Although 25% of Tax FTEs remain in corporate, organizations have transitioned over 50% to transactional SSCs or outsourcing
Non-local FTEs
Note: Results displayed above are for respondents who noted the function as being in Shared Services
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How do you expect your organization to change their use of Shared Services and outsourcing in the next three to five years?
Scope
How do you expect your organization to increase the use of Shared Services?
How do you expect your organization to increase the use of outsourcing?
• As compared to 2011, respondents indicated an interest in expanding the use of outsourcing across all areas
• Respondents continue to expect to increase the use of outsourcing for transactional processes
Future direction for outsourcingFuture direction for Shared Services• Similar to the 2011 survey, the majority of survey participants plan
on expanding the scope and reach of their SSCs
• There was a large jump in respondents planning to expand the # of knowledge-based processes in SSCs from 66% in 2011 to 82%
82%
82%
81%
73%
# of transactionalprocesses in SSCs
# of knowledge-based processes
in SSCs/COEs
% of internalbusiness units
being served bySSCs
# of geographies/regions being
served by SSCs
49%
24%
35%
33%
# of transactional processes beingoutsourced
# of knowledge-based processesbeing outsourced
% of internal business units beingserved by outsourcers
# of geographies/regions beingserved by outsourcers
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Trends in scope
– SSCs continue to expand outside of traditional back office functions
– Organizations leveraging Shared Services are moving upwards of half to three quarters of their FTEs to an alternate service delivery model
– Even traditional corporate functions, such as Tax, Real Estate/Facilities, and Legal are moving towards a transactional SSC or outsourced model
– The capabilities of transactional SSCs and outsourcers are moving up the value chain such that knowledge-based SSCs/COEs make up a smaller portion of FTE distribution
– Organizations are beginning to leverage Shared Services as a way to manage customer relationships with contact centers and customer service desks
– Processes that are being considered future Shared Services candidates centered around managing data and driving business insights regardless of functions
Scope
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Operations
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Which of the following internal processing technologies/enhancements has and/or will be implemented in your Shared Service Center(s)?
Internal processing technologies/ enhancements • Respondents indicated that 75% of technology spend was allocated to improving productivity within center operations• The top 5 technologies currently implemented remain the same since 2011• Employee self service increased substantially since 2011 (48%) to 62% this year according to respondents• Survey results indicate a significant increase in Software as a Service (SaaS) implementations (from 18% to 28% since
2011), and large increased in planned investments in cloud computing
Operations
* Top 10
75%
73%
67%
67%
66%
62%
60%
57%
57%
55%
Electronic funds transfer (EFT)
Workflow
Electronic data interchange (EDI)
Payroll services / Direct deposit
Financial consolidation/reporting
Employee self-service
Data warehousing
Imaging
Automated three-way matching
E-invoicing
Currently implemented *
39%
35%
34%
32%
32%
30%
27%
26%
26%
22%
Data analytics tool
Vendor self-service
E-procurement
E-invoicing
Business process management systems
OCR
Cloud computing – public
Cloud computing – private
Demand forecasting / capacitymanagement
Asset tracking
Future/planned implementation *
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Which of the following customer facing technologies/enhancements has and/or will be implemented in your Shared Service Center(s)?
Customer-facing technologies/enhancements• Respondents indicated that 18% of technology spend was allocated to improving customer interactions• The top 10 technologies are consistent since 2011, however, a higher percentage of respondents have implemented
each one• PDA access and social media have moved into the top 10 technologies respondents are considering implementing in
the future
Operations
70%
59%
56%
54%
40%
37%
36%
35%
31%
26%
Workflow
Electronic document management
Call center
Portals
Chat (IM/OC)
Data mining and reporting
Automated call distribution (ACD)
Case management
Vendor self-service
Interactive roice response (IVR)
Currently implemented *
42%
39%
31%
29%
28%
27%
26%
25%
24%
19%
Data mining and reporting
Vendor self-service
Knowledge management for customerservice case resolution
Electronic document management
Case management
Portals
PDA access
Social media
Computer telephony integration (CTI)
Workflow
Future/planned implementation *
* Top 10
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What is important to your business unit customers?Operations
How important is each of the following to your internal business unit customers?
SSC customer needs• Timeliness of response remains the most important service that SSCs can provide to customers since
2007according to respondents
• Cost of services has increased in rank since 2011 from #4 to #2
• Anticipating business unit needs or providing non-routine services remain the least important services to customers, however, providing non-routine services has increased in importance since 2011
Anticipating unidentified business unitneeds
Providing nonroutine services
Staff knowledge of business unitobjectives
Staff knowledge of multiple SSOprocesses
Reacting to business unit requests
Providing routine services
Cost of services
Timeliness of response
2013
2011
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8%
9%
11%
13%
14%
22%
24%
27%
49%
22%
51%
50%
40%
50%
49%
42%
Maintaining desired capability levels
Recruiting and retaining clerical staff
Career planning and progression
Maintaining strong morale
Recruiting and retaining managementstaff
Maintaining high customer servicelevels
Maintaining high process efficiency
Maintaining high quality
Extremely significant
Very significant
What people-related challenges do you anticipate within your organization's SSC(s) over the next three years?
Challenges• Operationally focused people-related challenges continue to top the list with maintaining high quality moving up from
#2 in 2011 to #1 this year
• Maturity of the respondents’ SSCs did not impact what people-related challenges were anticipated
• Anticipated challenges with recruiting and retaining both management and clerical staff have gone down since 2011
Operations
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How do you attract and retain talent in your Shared Services organization?
Methods used to motivate employees• Respondents indicate their SSCs faced an average of 8% employee turnover, down from 9% in 2011
• The focus on strong culture remains a top way to attract and retain talent while job rotation outside of the SSC has increased in importance
• Other ways organizations attract and retain talent within the SSC is by expanding responsibilities to include ad hoc projects
Operations
9%
45%
51%
55%
55%
63%
Other
Performance based pay (e.g.,variable bonuses)
Financial support forcontinuing education
Job sharing / flexible workpractices
Job rotation outside of theSSC into other areas of the…
Focus on strong culture
What is your annual percent in employee turnover by center?
Less than 5%36%
5% to less than 10%
30%
10% to less than 15%
13%
15% to less than 20%
12%
Greater than 20%8%
What benefits do you use to attract and retain talent?
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Trends in operations
– Higher quality has become an important reason for business units to opt in to Shared Services signifying that cost is not the only consideration
– There is an opportunity for Shared Services to move from an execution to a management-based role in internal controls for the broader organization
– While technology spend is primarily allocated to productivity, there is a growing trend to build enabling technologies to improve the customer experience
– As SSCs expand their breadth of services, they should consider continue to deliver on the basics such as timeliness of response and cost containment
– Challenges with attracting and retaining talent have decreased as SSCs find innovative ways to make Shared Services a career destination
Operations
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Journey and value
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How has process standardization and technology impacted your SSC’s?
Journey and valueDid you standardize processes before, during, or after the move to Shared Services?
Process migration
Did you move processes to Shared Services before, during, or after technology change?
• As in 2011, nearly half of the respondents standardized processes after shifting them to Shared Services
• Compared to 2011, 15% fewer respondents moved processes after the technology change versus at the same time
• The survey indicates the most popular approach to implementing SSCs continues to be to move processes prior to standardization and technology changes
First standardized
processes15%
First moved to shared services
49%
Standardized processes and
moved to shared services at the
same time36%
Moved processes before
technology change
42%
Moved processes at the
same time as technology
change39%
Moved processes after
technology change
19%
Timing of process move to SSCPrior to technology change
During technology change
After technology change
Timing of process standard-ization
Prior to move to SSC
2% 7% 6%
During move to SSC 10% 19% 6%
After move to SSC 30% 13% 7%
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Where has Shared Services had a positive impact?Journey and value
47%
42%
39%
39%
39%
32%
29%
21%
20%
20%
16%
12%
12%
2%
41%
50%
48%
42%
44%
51%
52%
48%
37%
55%
35%
46%
35%
14%
Cost reduction
Process efficiency
Effectiveness of internal controls
Data visibility
Platform to support growth/scalability
Process quality
Cross-organization comparability
Removal of distractions from core business
Ability to meet regulatory requirements
Service levels
Acquisition/M&A synergies
Developing new talent
Working capital
Tax benefits
Significant positive impact
Somewhat positive impact
Positive impacts of SSCs
• The top five benefits remain consistent since 2011• Respondents indicated a wide variety of benefits with cost reductions being the top• An increased number of respondents are finding that Shared Services enables M&A synergies as compared to 2011
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What is the financial impact of Shared Services?Journey and value
What is the average headcount reduction you achieved during the first 12 months after implementation of your SSCs?
Financial Impact
After the first 12 months, what is the average annual increase in productivity (headcount reduction or cost avoidance) achieved by your SSCs?
• 55% of respondents indicated an initial headcount savings of 10% or more
• The survey indicates average initial headcount savings is approximately 13%
• Average annual increase in productivity is 8%, consistent with the last four years
• Over the last 10 years, the average payback period has decreased from three to 2.6 years according to respondents
What was the payback period for your Shared Services implementation?
16%
24%
32%
19%
4%
No reduction 0% to 10% 10% to 20% 20 %to 30% More than 30%
9%
25%
37%
16%12%
NoneLess than 5%5% to lessthan 10%
10% to lessthan 15%
15% or more
Less than one year after
implementation10%
Between one and two years after implementation
34%
Between two and three years after implementation
28%
Between three and four years
after implementation
16%
Over four years12%
Copyright © 2013 Deloitte Development LLC. All rights reserved.2013 Global shared services survey results
To what degree has your organization achieved its objectives for Shared Services?
Journey and value
15%
15%
15%
16%
17%
20%
27%
28%
31%
41%
One-time costs
Number of geographies served
Number of processes in scope
Number of business units served
Time to implement – center set up
Headcount reduction
Size of retained organization
Time to implement – fully deployed
Technology standardization
Technology automation
Short of meeting objectives
16%
17%
17%
18%
18%
19%
19%
24%
26%
30%
Number of geographies served
Technology automation
Time to implement – center set up
One-time costs
Technology standardization
Number of business units served
Types of processes in scope
Number of processes in scope
Headcount reduction
Service quality
Exceeded objectives
Achieving objectives
• At least 50% of respondents met or exceeded all of their objectives• Service quality was the area most cited for exceeding objectives followed by headcount reduction, which was
the top answer in 2011• Similar to 2011, technology automation and standardization were the top areas cited for being short of meeting
objectives
Copyright © 2013 Deloitte Development LLC. All rights reserved.2013 Global shared services survey results
How could you have improved your Shared Services journey?Journey and value
7%
26%
29%
38%
39%
43%
47%
59%
Other
Better reporting
Faster decision making / issue resolution
Better team / resources
Stronger governance
Stronger executive support / alignment
Better alignment between process change and technology change
Increased change management
Changes to journey
• Similar to 2011, over half of respondents indicated the need for increased change management• Respondents continue to struggle with aligning process change and technology change• Other included improved analysis around location selection and not allowing an opt-in strategy
Copyright © 2013 Deloitte Development LLC. All rights reserved.2013 Global shared services survey results
Journey and value
How can Shared Services be leveraged as a strategic asset?
How are you leveraging Shared Services as a strategic asset at your organization?
What role(s) is your SSC(s)/organization currently playing, or you anticipate it playing, in analytics?
SS as a strategic asset
63%
55%
36%
32%
27%
31%
36%
43%
36%
55%
Demonstrating cost competitiveness (e.g., lower cost/unit)
Providing flexibility to ramp up/down with business demands
Offering heart of the business / core centers of expertise
Increasing ease of facilitating acquisitions
Performing analytics for business units/corporate
Achieving today Future goal
63%
45%40%
Using analytics toidentify / improveShared Services
performance within thecenter
Providing analyticsservices to the business
Using analytics toprovide business
insights
• The survey indicates demonstrating cost competitiveness is a main focus in SSCs today
• Moving into analytics was noted as the top future goal by over half of the respondents
• Of the 82% of respondents who are/or plan on performing analytics for their organization, 63% are focused on improving performance within the center
Copyright © 2013 Deloitte Development LLC. All rights reserved.2013 Global shared services survey results
Journey and value
3%
3%
4%
8%
30%
32%
31%
35%
39%
24%
61%
63%
55%
55%
45%
57%
7%
4%
11%
6%
12%
11%
1%
1%
Shared Services will become virtual eliminatingthe need for physical centers and facilities
Increasing automation and self-service will eventually cause Shared Services centers to go
“lights out”
The majority of enabling functions will eventuallybe moved to third parties
SSCs will serve external organizations andbecome profit centers
Shared Services will continue to expand into newgeographies
Shared Services will continue to expand intohigher value processes
Strongly agree Agree Disagree Strongly disagree
In what areas do you think Shared Services will evolve in the future?
Future trends
• 95% of respondents believe that SSCs will continue to provide critical and high-value processes for their organizations
• The survey indicates SSCs serving external organizations and becoming profit centers is the lowest agreed-upon trend followed by the emergence of virtual SSCs
Copyright © 2013 Deloitte Development LLC. All rights reserved.2013 Global shared services survey results
Trends in journey and value
– Organizations are effectively achieving benefits regardless of the order of implementation across functions and geographies
– More recent adopters of Shared Services are moving directly to multifunction as part of their initial implementation strategy
– Organizations continue to leave money on the table and increase their risks by not including Tax implications as part of their business case for Shared Services
– A multifaceted approach to addressing the retained organization is required to realize the intended benefits
– Shared Services continues to strive to be seen as a valuable partner to the business versus just a lower-cost alternative; SSCs see analytics as an important lever to increase their value
– The true value of analytics is leveraging the data, people, and technology infrastructure within the SSC to provide business insights to the broader organization
– Although Shared Services is a mature concept, the next generation includes higher value processes, new geographies, and a higher utilization of hybrid models, including SSCs, COEs, and outsourcers
Journey and value
Copyright © 2013 Deloitte Development LLC. All rights reserved.2013 Global shared services survey results
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