SSON'S Global State of The Shared Service & Outsourcing Survey Report and Analysis 2016 PDF

Powered by:
Brought to you by:
Global State of the Shared Services and Outsourcing Industry
& Outsourcing Week

Middle East 2016
The Shared Services &

Outsourcing Network
SSONS Global State of the Shared

Services and Outsourcing Industry
Survey Report And Analysis
Key findings on whats driving radical
performance in 2016
www.ssonetwork.com
Want more like this? Become an SSON Member for Free at www.ssonetwork.com
& Outsourcing Week

Quick demographics of
Middle East 2016
What are the Radical Performance

Drivers for Shared Services?
With much of the discussion around Shared Services evolution
hinging on new opportunities that have presented themselves in
recent history, SSON asks practitioners how they are positioning
themselves to become more relevant and offer better service in the
coming years.
To provide a frame of reference, we have identified 5 radical value
drivers and asked our members to comment on how they leveraging
them:
People
Definition of
Value
Data Analytics
Organizational
Design
Digitalization
What youll discover:

79% of practitioners surveyed believe their current Shared
Services strategy will deliver dramatic and recognized value
beyond cost savings
Process excellence is the trend most likely to impact value-add
in the next 2 years. Robotics Process Automation was ranked
least.
44% of SSOs globally intend to grow/maintain use of data
analytics to improve performance
68% of SSC practitioners say they are considering replacing
more FTEs with Technology
Who took part?

Nearly 500 Shared Services and Outsourcing practitioners took
part in the 2016 survey, of which the largest segment represented
multifunctional Shared Services followed by Finance and
Accounting. North American respondents marked the largest
segment (20%) followed by South Asia.
The rest of the world was fairly equally represented across Central
and Eastern Europe, Western Europe, UK and Ireland, India, and
Australia / New Zealand. A third tier was made up by the Middle
East & North Africa, Latin America, and China.
What stands out across all regions is the length of Shared Services
careers. Nearly 40% of respondents have been working in Shared
Services for more than a decade, and more than half for at least six
years. The biggest segment of respondents have global roles, after
which most roles are country specific. This would imply lots
of scope for progressing to regional services.
&500
Outsourcing
respondents Week
Middle East 2016
Where Are They Located?
North America 22%
South East Asia 15%
Australia & New Zealand 13%
India 10%
UK & Ireland 10%
Continental/Western Europe 10%
Central and Eastern Europe 8%
Middle East and North Africa 5%
Latin America 4%
China 4%
Which Functions Do They Represent?

Multifunction 36%
F&A 27%
HR 15%
IT 5%
Other 18%
What Are the Maturities of the Functions/

Regions They Represent?
10+ years 39%
3-5 years 23%
6-10 years 18%
1-2 years 10%
0+12 months 10%
Their Role is
Global 42%
Country-specific 30%
Regional 28%
The vast majority of respondents still

rely on Key Performance Indicator
dashboards (86%) or PowerPoint (50%),
and very few use modern tools such as
data visualization to demonstrate value
creation.
Week
The Shared Services Creed separates &
the Outsourcing
believers from the rest
of the pack:
Middle East 2016
I believe our current Shared Services strategy will deliver a dramatic and recognized value to the organization beyond cost savings.
Nearly 3/4 of respondents to SSONs 2016 State of the Industry survey agree with this statement. Also encouraging is the fact
that when asked what the term digital disruption evokes, the vast majority of respondents chose the word opportunity over risk.
One of the crucial characteristics that sets todays Shared Services and Outsourcing centers apart from their predecessors
is the recognition of value add that modern centers can provide.
While in the not so distant past the success criteria was all about cost-saving (and indeed, as our survey shows, this is still
by and large how practitioners measure their performance) the understanding today is that, equipped with data analytics and
empowered with technology, Shared Services can offer so much more.
Barbara Hodge
Online Editor
The Shared Services & Outsourcing Network - SSON
The fact that 3 out of 4 practitioners believe in the value creed (above), which would have caused a few cynical eye brows to
be raised not too far back, speaks volumes. In fact, if you need a picture to tell the story, here it is:
I believe our current Shared Services strategy will deliver a dramatic and recognized value to the
organization - beyond cost savings
All Respondents
Agree 75%
Neither Agree or Disagree 17%
Disagree 8%
By Region
Agree t Neither Agree or Disagree t Disagree t

China
71%
11%
Latin America
88%
India
81%
Central & Eastern Europe
79%
North America
72%
South East Asia
Continental/Western Europe
Middle East & North Africa
78%
63%
5%
78%
6%
8%
16%
19%
9%
9%
10%
9%
12%
77%
6%
11%
81%
UK & Ireland
Australia & New Zealand
18%
13%
25%
11%
12%
9%
13%
More than 75% of respondents believe value extends beyond cost savings.
Markets like LatAm, India and South East Asia are specifically strong in
believing this to be the case.
Whats noteworthy about this is that the strongest believers are in some of the newest Shared Services locations like China,
Latin America, and India.
& Outsourcing Week

Middle East 2016
So: How are global practitioners going about delivering this

value beyond cost savings?
Despite all the new offerings in the market, around digital capability and automation technology, most practitioners believe
that process excellence will be the key driver for change in the next two years, followed closely by data analytics and
operational agility. Whether this denotes just how much work still remains to be optimized or the fact that practitioners are
as of yet unconvinced by the effectiveness of alternatives, the fact that innovations like robotic process automation and
digital disruption are rated significantly lower comes as somewhat of a surprise. See Chart 1 below.
Which of these trends will radically impact the value your Shared
Services provides to the organization in the next 2 years?
Process Excellence 4.28
Data Analytics 4.16
Operational Agility 4.06
Global Talent Management & Workforce Planning 3.76
Organizational Redesign 3.74
Global Business Services 3.70
Digital Disruption 3.38
Robotics Process Automation 3.18
0
Dont
Know
Strongly
Disagree
Disagree
Neither agree
nor disagree
agree
Strongly
agree
Chart 1
Most respondents agree that Process Excellence is driving radical change

(avg.4.2 on a scale of (0 to 5) while innovations such as RPA and Digital
Disruption get lower ratings (3.1 and 3.2 respectively).
& Outsourcing Week

Middle East 2016
What this does indicate is that significant inefficiencies remain across support services, which can be addressed through
continuous improvement or similar initiatives. That is certainly where practitioners today are focusing their attention.
Where it gets interesting is when we break down the functions. According to our survey, HR is taking the lead in recognizing
the impact of most of these value drivers on enterprise performance, perhaps reflecting the importance of talent management
as a success driver across global operations.
Finance Shared Services, on the other hand, prioritize GBS as a value driver, giving it higher marks than HR, for example. This
may reflect a recognition of the added complexity of local regulations on the workforce and, therefore, of GBSs limits when it
comes to HR services. More surprisingly, perhaps, robotic process automation gets the lowest marks overall.
The surveys findings around expected impact correlate fairly closely with implementation experience. In other words: 80%
of practitioners have direct experience with process excellence implementation (and believe it will drive value), while nearly
70% have no experience with RPA (and believe it wont drive value). Would it be too simplistic to assume that here, as in other
areas, seeing is believing? See Chart 2.
Have you implemented or adopted any initiatives

to drive these Industry Trends?
Robotics Process Automation
12%
Digital Distribution
11%
Global Talent management & Workplace Planning
6%
16%
15%
18%
Organizational Redesign
17%
Operational Agility
18%
Process Excellence
16%
6%
14%
22%
Global Business Services
Data Analytics
13%
18%
12%
32%
7%
22%
17%
5%
24%
17%
25%
31%
19%
17%
32%
33%
10%
14%
24%
25%
46%
16%
16%
22%
34%
5%
7%
18%
15%
14%
11%
6%
10%
6%
3% 4%
Yes and Expanding t Yes and Maintaining Levels t Testing t No but plan to t Dont know t No t
Chart 2
Process Excellence is also the trend that most respondents have implemented
(80% have) while RPA is the trend that fewest respondents have implemented
(68% have not).
& Outsourcing Week

Middle East 2016
Radical Performance Driver #1:

Your People
The original Shared Services model hinged on centralizing and automating many support services with the result that
transactional jobs have, over time, been either outsourced or eliminated, and the work that remains requires a more
customer centric and knowledge based approach.
As Shared Services mature, we are seeing that softer skills like problem-solving and leadership are becoming more
sought after.
The chart below illustrates the fact that, across the world, the ability to communicate and collaborate today outweighs
technical expertise and domain knowledge. This correlates well with the overall adoption of standardization and supports
the transformation of Shared Services into a partnership position where access to data and collaboration is driving
improved results for the customer. See Chart 3.
Which key skills do you need more of within your SSO, to deliver
more value?
Technical Knowhow
Problem Solving-ability
Relationship Management
Leadership
Functional Process Expertise
Industry Domain Expertise
Negotiation
Communication
Data Analysis
Language
Agree t Neither Agree or Disagree t Disagree t
Chart 3
& Outsourcing Week

Middle East 2016
Whats interesting is how these priorities shift as we break down preferred skill requirements across countries or regions.
In the table below we see that India, China, and South East Asia all rate process expertise skills very highly in contrast
to other regions. The popularity of India, China and South East Asia with BPO organizations, which have long recognized
process expertise as a valuable differentiator, may go some ways to explaining this trend.
How do different regions compare in terms of the skill sets they

are seeking in Shared Services?
Problem
Solving
Ability
Relationship
Management
Leadership
Communication
Data
Analysis
Functional
Process
Expertise
Technical
Knowhow
Negotiation
Industry
Domain
Expertise
Language
All Respondents
4.1
4.1
4.1
3.7
3.6
3.5
3.3
3.2
Australia and
New Zealand
3.8
3.9
3.8
3.8
3.8
3.3
3.3
3.3
2.8
2.5
Central and
Eastern Europe
4.2
4.1
4.2
3.9
3.9
3.5
3.6
3.7
3.2
3.2
China
3.9
3.9
3.9
3.9
3.6
3.7
3.3
4.1
Continental/
Western Europe
4.1
4.1
3.8
3.7
3.6
3.5
3.1
3.1
3.5
India
4.1
4.4
3.8
4.2
3.2
3.4
3.2
Latin America
4.2
3.8
3.9
3.6
3.4
3.5
2.9
3.7
Middle East and

North Africa
4.5
4.5
4.5
4.4
4.4
4.1
3.8
4.1
4.1
North America
4.2
4.1
4.1
3.7
3.7
3.5
3.1
3.1
South East Asia
4.4
4.2
4.3
4.2
4.2
3.9
3.9
3.6
UK and Ireland
4.1
3.9
3.9
4.2
3.9
3.6
3.4
3.7
3.3
3.2
5 Strongly agree 4 Agree 3 Neither agree nor disagree 2 Disagree 1 Strongly disagree 0 Dont know
Chart 4
As Shared Services mature, softer skills like Problem solving and Leadership
are valued above technical skills. However, BPO-driven regions like India/APAC
see Process Expertise as key value driver
Across North America, on the other hand, problem solving and relationship management, as well as data analytics,
garner the highest ratings. Similar results apply to other mature locations across Europe. Only those regions or countries
surrounded by a multitude of different nearshore languages, like the Middle East & North Africa, or China, are still
prioritizing language skills.
And while data analytics scores highly across the board, it is highly noteworthy that, country-by-country, region-byregion (with the exception of North America and India), communication skill matches or pips data analytics in terms of
importance.
& Outsourcing Week

Middle East 2016
Some of the top concerns around talent management include getting the right leadership capability and tapping the new
resources or skill sets required to deliver more value. On the other hand, although we tend to hear about the challenges of
recruiting and retaining the all-important Millennial generation, neither this nor attrition ranks highly on practitioners lists of
key talent challenges.
What is your biggest legend talent management challenge?

31%
General Recruting
Resourcing for new value-adding jobs/skill
34%
Up-skilling existing staff
29%
Succession planning
34%
Leadership
28%
Attrition
32%
Retaining Millenials
32%
26%
Selling Shared Services as carrer path
Chart 5
What is clear is that practitioners across the board and across the world recognize that in future they will need to deliver a
different kind of value to their business customers. To support these value-adding services, practitioners are increasingly
relying on Centers of Expertise and the upskilling of existing staff as a resourcing strategy.
One other trend that stands out is that of replacing FTEs with technology: 68% of the surveys respondents indicate they
are considering or already making these kinds of changes.
Finance and multifunctional Shared Services are further ahead of HR or IT SSOs in this regard, however. See Chart 7.
& Outsourcing Week

Middle East 2016
How are you re-thinking your resourcing strategy?

All Respondents
Adding geographies/time-zones through
outsourcing contract
12.8%
Replacing FTEs with outstanding
14.6%
More virtual/remote workers
14.6%
Adding geographies/time-zones through

captive employees/centres
21.1%
51.5%
26.2%
46.1%
27.4%
16.4%
22.5%
Replacing FTEs with technology
23.5%
Recruiting new staff and skills externally
24.1%
12.8%
12.2%
45.5%
26.8%
Recruiting new staff and skills internally

(redeploying)
14.6%
13.7%
43.2%
40.2%
28.6%
8.3%
22%
10.1%
44.3%
36.5%
Upskilling existing staff
32.7%
Building centres of expertise/developing

specialities
36%
31%
46.7%
39.6%
8%
11.3%
16.4%
8.6%
8%
Making changes t Considering changes t No changes t Dont know t
Chart 6
Replace more FTEs with Technology By Function

80%
70%
60%
50%
40%
30%
20%
10%
0%
F&A
HR
IT
Multifunction
Other
Chart 7
Developing COEs and upskilling staff are major priorities for change in 2016.
Trend is for existing staff to be leveraged for additional skills. Across all
functions, 68% are considering replacing FTEs with technology.
& Outsourcing Week

Middle East 2016

Data Analytics
Data analytics has emerged as the real star of the year: only 10% of survey respondents are not considering data analytics.
This marks a significant improvement over the 2015 survey results. However, despite the general commitment to delivering
value beyond the cost (see below), most practitioners are still using analytics primarily as a means of cost control rather
than revenue generation.
Implementation of data analytics and perceived opportunities

Are you currently using
data analytics to improve
performance?
All Respondents
4%
8%
What are the perceived opportunities for Data Analytics?
Improved process
metrics
Cost reduction
27%
Improved resource
allocation
Market Intelligence
16%
17%
Workforce insights
Improved
understanding of
external customer base
Risk optimization
26%
Better evaluation of
supplier relationships
Top line growth
Expanding t
Maintaining t
Testing
t
Considering t
No
t
Dont know t
Dont
Know
Strongly
Disagree
Disagree
Neither agree
nor disagree
agree
Strongly
agree
Chart 8
& Outsourcing Week

Middle East 2016
Only about 10% of respondents are not considering data analytics. But despite
the general commitment to delivering value beyond cost, most are still
planning to use analytics for cost control, rather than revenue generation.
This is borne out by the fact that, according to our survey, improved process metrics / cost reduction and better resource
allocation are some of the leading drivers for data analytics. There are still plenty of opportunities around workforce
insights or improved supplier management are yet to be tapped into, however.
Again, separating functional Shared Services yields some interesting results: if there is one function that seems to get
data analytics more than others it appears to be HR. According to our survey, Human Resources scores the highest points
[4.3 out of 5] in recognizing the potential for data analytics to impact the operation. See Chart 9 below.
Which processes / functions offer the most potential for data

analytics to drive improvement?
All Respondents
HR
3.6
P2P
3.5
Supply Chain &

Distribution
3.4
Travel and Expense
3.4
O2C
3.3
R2R
3.2
Sales & Marketing
3.2
Respondents by Function
HR
P2P
Supply
Chain
T&E
O2C
R2R
Sales &
Marketing
F&A
3.1
4.1
3.8
3.8
3.7
3.5
3.3
HR
4.3
2.4
2.6
2.9
2.1
2.4
IT
2.6
2.6
3.1
2.5
2.4
2.4
2.6
Multifunction
3.8
3.8
3.5
3.5
3.5
3.4
3.6
Other
3.6
3.5
3.3
3.3
3.3
3.3
3.3
Chart 9
Biggest proponents of data analytics are HR and Finance functional leads,

who recognize its intrinsic value. IT has not bought into data analytic. Within
Finance, T&E and P2P are top opportunities.
& Outsourcing Week

Middle East 2016
Again, given the impact of global talent management on operational success, HRs prescience in recognizing the
opportunities for leveraging data analytics to optimize its talent resource is noteworthy.
Where, specifically, data analytics can drive value was the next question we asked. Within HR services, the areas that stand
out include measuring employee satisfaction, retention and recruitment all of which are seen as offering the greatest returns
for data analytics, according to our survey. Finance and multifunctional Shared Services identify procure to pay as a key
opportunity in which leveraging analytics will yield results. See Chart 10 below.
Data analytics can improve HR performance through

Recruitment
Succession Planning
61%
54%
10%
76%
48%
Retention strategies
74%
2%
10%
32%
79%
Benchmarking against other companies
22%
42%
63%
Measuring employee satisfaction
5%
36%
Workforce Planning
Payroll
34%
5%
17%
23%
4%
3%
Agree t Neither agree or disagree t Disagree t
Chart 10
Despite the widespread adoption of data analytics, it is still early days and many Shared Services are only just starting
to scratch the surface of whats possible. So its interesting to gain some insights into whats preventing greater
implementations of data analytics across Shared Services. This turns out to be not a lack of conviction, or uncertainty
around the business case. Instead, practical realities like competing investment priorities or lack of resources are
identified as preventing most Shared Services from driving more data analytics forward.
The increased reliance on data analytics in future is already driving more demand for skilled resources today. To tap into
the analytics skills that will be required, most practitioners are planning to upskill existing staff rather than recruit new
talent, according to our survey. See Chart 11 overleaf.
& Outsourcing Week

Middle East 2016
How will you access the data analytics skills you need?
Recruit new staff
Upskill existing staff
Partner with outsourced experts
30%
15%
19%
16%
31%
10%
14%
44%
Leverage staff in onshore centers
43%
14%
34%
20%
Leverage staff in offshore centers
27%
20%
11%
18%
18%
25%
12%
11%
12%
15%
10%
21%
6%
No t No but planning to t Testing t Yes and maintaining levels of use t Yes and planning to increase t
Chart 11
This strategy makes absolute sense in the short term, but over the medium to long term we may expect a strong shift
towards Centers of Expertise being set up, recruiting experienced analysts from industry.
Whats interesting is that the government sector seems, in some instances at least, more ready to grasp at these
opportunities than the private sector. Respondents from the government or public sector appear to understand the
business case better than does the private sector, irrespective of its size, but at the same time the public sector is
challenged in practical terms by multiple systems and the ability to access one version of the truth.
Midsize companies struggle slightly more with budget availability but are also more confident about accessing data than
are larger organizations, where complex and multiple systems offer more of a hurdle to overcome.
& Outsourcing Week

Middle East 2016
What is holding back the implementation of data analytics?

All Respondents
Competing
Investment priorities
3.5
Cleanliness of data
3.3
Lack of resources to
allocate to this project
3.2
Lack of budget
availability
3.2
Lack of access to
required skills
Government
Not for
profit
SME
$2bn $10bn
>$10bn
Competing Investment priorities
3.8
3.6
3.3
3.5
3.6
Cleanliness of data
3.5
3.8
3.2
3.2
3.4
Lack of resources to allocate to this project
3.3
3.6
3.1
3.3
3.3
3.1
Lack of budget availability
3.8
3.6
3.2
3.5
3.2
Accessing real-time
data
3.1
Lack of access to required skills
3.3
3.6
2.8
Attaining one version

of the truth
3.1
Accesing real-time data
3.3
3.7
3.1
2.8
3.2
Gaining Senior
management or
buy-in
Attaining one version of the truth
4.2
3.9
3.1
3.2
3.0
Gaining Senior management or buy-in
3.7
3.3
3.2
2.9
2.9
Mining/accessing
internal data
2.9
Mining/accessing internal data
3.3
3.3
2.9
2.8
2.9
A watertight business
case
2.9
A watertight business case
2.3
3.3
2.8
2.8
3.1
Chart 12
Whats preventing data analytics isnt lack of conviction but practical realities
like prioritizing and resources. The public sector understands the business
case best but is challenged by multiple systems
Organizations that will take the lead will be those with a strong mandate and support from the top-most level. Data
analytics as an enabler of business success is something that cannot be driven by Shared Services alone, but must be
embraced as a strategy by the Board. Where this is the case, Shared Services is the obvious model to engage with and
drive this powerful strategy forward.
The increased reliance on data analytics in future is already driving more demand for skilled resources today. To tap into
the analytics skills that will be required, most practitioners are planning to upskill existing staff rather than recruit new
talent, according to our survey.
& Outsourcing Week

Middle East 2016

Automation and Digitalization
As the digital marketplace has swept the world over the past half-dozen years, and what was first called technologyenabled has now become automated, it has become clear that there is a significant opportunity for technology to drive
more value.
The primary drivers of performance are people, process, and technology. But, despite the widespread acknowledgment of
the significance of the latter in driving performance, and despite the maturity of Shared Services, of all the most popular
solutions we put forward, only two have reached 50% plus penetration to date.
Most Popular Automation Solutions

Document imaging
58%
E-invoicing
50%
Payroll Processes (Tax Filing, Reporting, Calculations, etc)
49%
Content and Collaboration Management
46%
Case or Service Management
43%
Data Analytics
41%
Business Intelligence
38%
Knowledge Management
38%
Contact Centre Automation (ACD, IVR, Email Management)
38%
e-Recruiting
35%
Workforce Management
34%
Account Reconciliantion
33%
E-Purchasing
31%
Cash Management ( Cash application, Treasury)
30%
Supplier Management (including Self-Service Vendor Portal)
28%
Application Tracking System
27%
Human Capital Amnagement
27%
SIEM (Security Information Event Management)

Dynamic Discounting
6%
5%
Chart 13
Despite the maturity of Shared Services and widespread acceptance of

automation as performance driver, only 2 automation solutions have reached
50%+ penetration. SSOs are still vastly under-automated.
& Outsourcing Week

Middle East 2016
That still leaves a significant gap, for although document imaging and e-invoicing are the most popular automation
solutions, the fact remains that 50% of respondents have not yet touched e-invoicing. The implication is that Shared
Services are still by and large vastly under-automated, particularly in areas like dynamic discounting and across some HR
solutions, and there is considerable opportunity for improvement by adopting more automation.
The most popular automation solutions across HR today are e-recruiting and case service management, while for Finance,
business intelligence solutions are gaining in popularity, behind document imaging and e-invoicing. See Chart 14.
Which of the following automation solutions have you already

implemented?
Dynamic
Discounting
SIEM
Application
Tracking
System
Human
Capital
Mgmt
Supplier
Mgmt
Cash
Mgmt
EPurchasing
Account
Reconciliation
Workforce
Mgmt
E-Recruiting
Grand Total
5%
6%
27%
27%
28%
30%
31%
33%
34%
35%
Other
3%
0%
23%
26%
13%
13%
26%
21%
33%
26%
Multifunction
7%
11%
22%
24%
31%
33%
33%
34%
33%
33%
IT
20%
20%
40%
33%
47%
27%
33%
33%
33%
47%
HR
0%
0%
48%
53%
10%
20%
20%
15%
30%
63%
F&A
5%
3%
22%
16%
39%
40%
36%
49%
40%
27%
Name
Knowledge
Mgmt
Contact
Centre
Automation
Business
Intelligence
Data
Analytics
Case or
Service
Mgmt
Content and
Collaboration
Payroll
Processes
E-Invoicing
Document
Imaging
Grand Total
38%
38%
38%
41%
43%
46%
49%
50%
58%
Other
51%
28%
21%
36%
41%
46%
39%
44%
46%
Multifunction
37%
51%
40%
42%
46%
43%
51%
51%
62%
IT
47%
33%
53%
47%
53%
40%
53%
60%
47%
HR
45%
40%
28%
40%
60%
50%
58%
33%
48%
F&A
24%
22%
49%
42%
28%
49%
43%
60%
69%
Name
Chart 14
Finance shows highest rate of automation across all functions even leading
in workforce management. Exceptions include Knowledge Management
(where HR is twice as automated) and Contact Centers.
& Outsourcing Week

Middle East 2016
Finance practitioners also identify accounts payable, and P2P specifically, as potentially offering the greatest returns on
automation.
In which of the following do you see the greatest opportunity for

automation to deliver improved value?
Another interesting finding is that it is the functional heads, not IT, that are the most committed to and convinced of
automations value. Solution providers who have been targeting CIOs as their point of contact, therefore, may want to
rethink their strategy.
AP
65%
33%
2%
P2P
65%
33%
2%
O2C
R2R
56%
54%
Procurement
Recruiting
Talent Management
Travel & Expense
3%
44%
2%
66%
30%
54%
35%
47%
HR Portal
Training And Development
41%
11%
15%
38%
65%
53%
30%
36%
65%
4%
5%
11%
30%
5%

Chart 15
& Outsourcing Week

Middle East 2016
Solution providers who have been targeting CIOs as their point of contact,
may want to rethink their strategy
Continuing the general trend we are witnessing of HR recognizing opportunities ahead of Finance, in the Chart 16 below,
we see HR services being the first to recognize the significant opportunity for automation to deliver value, specifically in
travel & expense and talent management.
In which of the following do you see the greatest opportunity for

automation to deliver improved value?
All Respondents
F&A
HR
IT
Multifunction
Other
Travel & Expense
3.4
Travel & Expense
3.8
3.1
3.6
3.1
HR Portal
3.3
HR Portal
3.2
4.3
2.6
3.3
3.3
Procurement
3.3
Procurement
3.6
2.5
2.5
3.8
2.9
P2P
3.2
P2P
2.5
3.6
2.8
AP
3.2
AP
4.1
2.1
2.5
3.5
2.6
Training & Development
3.2
Training & Development
3.8
2.7
3.3
2.8
Recruiting
Recruiting
2.7
3.6
2.7
3.4
2.5
O2C
O2C
3.8
1.3
2.3
3.3
2.8
Talent Management
Talent Management
2.7
3.7
2.6
3.1
2.5
2.9
R2R
3.5
1.9
2.3
3.3
2.7
R2R
Chart 16
& Outsourcing Week

Middle East 2016
Functional heads, not IT, are most committed to automation, so targeting CIOs
may be the wrong strategy. Biggest overall opportunity is HR Portal
While automation reduces human error, improves speed and reliability, and supports standardization, the main benefits
of increased automation, according to our survey, are improved customer satisfaction, operational agility, and resource
flexibility. This emphasis on better service and faster reaction is a key determinant of value going forward.
How will existing FTEs be impacted by increased automation?

Refocused on more value-adding work
Redeployed into business
Retained for transition until natural attrition
reduces numbers to desire levels
Redundancy
0
Dont
Know
Strongly
Disagree
Disagree
Neither agree
nor disagree
agree
Strongly
agree
Chart 17
The leading advantage of automation is increased customer satisfaction and

improved operational agility/resource flexibility. Impact on cost is perceived
as lesser.
We will be discussing these results at our Flagship Events.

Email us at events@ssonetwork.com if youd like to join the conversation!
& Outsourcing Week

Middle East 2016
The big surprise: Robotics Process Automation [RPA]. The automation headliner for the past year has been robotic process
automation, and yet the majority of Shared Services have a) not implemented RPA, and b) dont understand or recognize its
value.
Have you already implemented Robotics Process Automation?

51%
12%
12%
9%
12%
8%
Dont Know t No t No but planning to t Testing t Yes and maintaining levels of use t Yes and oplanning to increase t
Chart 18
Chart 18 above shows that while multifunctional centers do show more awareness of RPAs potential than other functions,
the vast majority of the practitioners we surveyed remain unconvinced about robotic process automation for their own
operations. However, when asked whether RPA will replace BPO most practitioners expect it to present an enhancement, not
a replacement, of outsourcing.
& Outsourcing Week

Middle East 2016
Do you understand the value of robotic process automation to

your operation?
All respondents by function
No t Not convinced t Testing t Yes t Yes, absolutely t
HR
Other
53%
31%
28%
IT
F&A
Multifunction
Grand Total
25%
47%
3%
7%
27%
28%
25%
21%
32%
3%
13%
28%
10%
13%
20%
13%
10%
21%
13%
10%
21%
24%
8%
21%
8%
21%
15%
Chart 19
Will RPA replace BPO?

All respondents by function
HR
Other
IT
F&A
Multifunction
Grand Total
Dont Know t No RPA is a enhancement of BPO t

No, RPA will be deployed internally, BPO is unaffected t
Yes, partly t Yes, certainly t
18%
58%
13%
49%
28%
5%
32%
37%
22%
4%
42%
40%
35%
39%
18%
7%
39%
33%
13%
7%
7%
3%
9%
7%
6%
13%
16%
3%
Chart 20
& Outsourcing Week

Middle East 2016

Redefining Value
One of the trends we have witnessed over the past years is that many businesses have redefined their expectations around
what constitutes the value delivered by Shared Services. While in the early days a certain percent reduction in cost was
recognized as value, once these low hanging fruit had been harvested, the expectation was nevertheless for Shared
Services to deliver year-over-year savings.
In parallel, and based on emerging capabilities around mining and reporting on business intelligence, many organizations
have begun to recognize Shared Services role in supporting the scaling up of support services when pushing into new
markets, or the ability to deliver valuable data analytics on a workforce or a supplier base. In this respect, value itself is
being redefined from dollars to a more broad-based and less tangible service.
Value is measured as
Value is measured in dollars
Value is recognized as an intangible enabler of performance
56%
44%
Chart 21
To find out more, we asked practitioners to tell us how they believed the business [their customer] was defining value. By
and large, and despite all the talk of partnering for growth, what emerged was that cost is still the main determinant of
value although outputs like revenue growth are rising on the list. Across all functions, faster service and topline revenue
growth emerged as the most significant definitions of value and cost. However, there are some clear differences across
functions. For example, HR perceives its customers perceptions as being impacted by integrated services; IT highlights
speed; and Finance remains cost focused. See Charts 22 & 23 overleaf.
While cost will be a constant, whats interesting is to see the increased validation given to things like strategic business
insights, competitive advantage, etc. What was surprising, was to find data analytics rated fairly low down on this scale
with, again, only HR apparently recognizing its impact. HR also prioritizes cost far less then do other Shared Services. See
Chart 21.
The vast majority of respondents still rely on Key Performance Indicator

dashboards (86%) or PowerPoint (50%), and very few use modern tools such as
data visualization to demonstrate value creation
& Outsourcing Week

Middle East 2016
How does the business (your customer) define value?

All respondents
Lower cost/bottom line
60%
Faster Service
41%
Top line revenue growth
37%
More integrated services across functions/processes
36%
Strategic Business Insights
27%
Competitive advantage
27%
Innovation
21%
Having the SSO as a business partner
16%
Data Analytics
Enabling access to new markets
14%
6%
Chart 22
F&A
HR
IT
Multifunction
Other
Lower cost/bottom line
70%
41%
60%
60%
63%
Faster Service
42%
41%
67%
40%
34%
Top line revenue growth
31%
38%
40%
36%
42%
More integrated services across functions/processes
36%
54%
40%
34%
24%
Strategic Business Insights
33%
38%
20%
24%
18%
Competitive advantage
23%
23%
27%
29%
34%
Innovation
23%
26%
20%
18%
18%
Having the SSO as a business partner
9%
15%
13%
16%
29%
Data Analytics
13%
23%
13%
14%
8%
Enabling access to new markets
6%
0%
0%
7%
13%
Chart 23
Despite talk of partnering for growth, cost is still main determinant of

value, though revenue growth is rising on list. HR believes customers value
integrated services most; Finance believes its cost; IT, speed.
& Outsourcing Week

Middle East 2016
Continuous improvement remains a key means of identifying value generating activities across Shared Services, but when
we look at the functions specifically, we see that HR and multifunctional services rely more on customer demand and data
analytics as influencers for CI, than do Finance or IT. Interestingly, across the board, all functions reported that consultants
ranked as least significant in identifying data generating activities. See Chart 24 below.
How are you identifying value-generating activities?

All Respondents
F&A
HR
IT
Multifunction
Other
3.5
3.9
3.1
3.9
3.7
3.7
3.3
3.6
3.5
Continuous Improvement Initiatives
3.7
Continuous Improvement Initiatives
Based on Customer Demands
3.4
Based on Customer Demands
Bnechmarking
3.2
Bnechmarking
3.1
3.2
3.1
3.3
2.9
Business Insights via data analytics
Business Insights via data analytics
2.7
3.3
2.7
3.1
2.8
Advice from Consultants
2.5
Advice from Consultants
2.5
2.1
2.7
2.6
2.5
Chart 24
Continuous Improvement key to identifying value-generating activity.

HR/Multifunctional rely on customer demand and data analytics more
than Finance/IT do. All functions rank consultants as least helpful.
Important enablers of value are Centers of Expertise and automation. RPA, again, gets low points as an enabler.
How is value-delivery enabled in Shared Services?

Global Process Ownership (GPO)
30%
Single ERP
29%
30%
Global Business Services (GBS) model
43%
Automation
Data Analytics
28%
Governance & Compliance

Sound Autit and Regulatory Controls
34%
10%
BPO Partnerships
Robotics Process Automation (RPA)
Cloud-enable applications/Software as a Service
Process Expertise/Center of Excellence
13%
7%
15%
50%
Chart 25
& Outsourcing Week

Middle East 2016
A key issue in this discussion is how Shared Services are reporting on value, whatever its definition. What we found was
that the vast majority of respondents still rely on traditional means like Key Performance Indicator dashboards (86%) or
PowerPoint (50%), and very few use modern tools such as data visualization to demonstrate value creation. See Chart 26.
This is particularly noticeable within Finance and Accounting, where only 20% of respondents use data visualization tools
for reporting purposes, despite the emergence of a number of solutions in the marketplace that support visual reporting.
The other notable result is that IT stands out by communicating its value through its impact on cash and contribution.
IT also makes the greatest use of data visualization but is still only at 57% penetration. See Chart 27
How do you demonstrate / report value to your customers?

All Respondents
Key Performance Indicator (KPI) Dashboard
88%
52%
Project Reviews: business case, outcomes,ROI, lessons learned

Graphics and Metrics in Power Point (Town Hall, Customer Status Reviews)
50%
33%
Cash Impactand Contribution Analysis (i.e working capital, cash flow)

Data visualisation Tool
31%
Business Intelligence Platform

Smart Device APP with Dashboards
18%
9%
Chart 26
F&A
HR
IT
Multifunction
Other
Key Performance Indicator (KPI) Dashboard
92%
87%
79%
88%
84%
Project Reviews: business case, outcomes,ROI,

lessons learned
36%
74%
64%
52%
55%
Graphics and Metrics in Power Point

(Town Hall, Customer Status Reviews)
47%
55%
50%
49%
53%
Cash Impactand Contribution Analysis

(i.e working capital, cash flow)
34%
21%
64%
32%
34%
Data visualisation Tool
19%
37%
57%
34%
29%
Business Intelligence Platform
14%
21%
29%
22%
11%
Smart Device APP with Dashboards
3%
8%
29%
8%
16%
Chart 27
KPI Dashboards are the most common reporting form, however few
respondents use modern tools, such as data visualization, to demonstrate
value creation particularly in F&A functions (only 20% penetration).
& Outsourcing Week

Middle East 2016

Restructuring and Redefining Shared
Services
One of the key takeaways of this survey is that the nature and model of Shared Services itself is necessarily changing.
The underlying centralization and standardization that defined the traditional Shared Services model served the
organization well in its early days. But today, given the leaps and bounds through which process as well as technology
have changed, the Shared Services model itself is undergoing a transformation. In its new incarnation, Shared Services
is at the same time more technology-enabled but also more customer-centric; has less touch points but more insights;
replaces manual transactions with process automation but at the same time focuses on knowledge as the ultimate
enabler. In short, Shared Services will do far far more with far fewer people, but the new jobs are nearly unrecognizable to
the industrys pioneers.
Shared services models are still generally insourced and characterized by small teams (more than 50% of respondents
have teams of less than 200 employees), but in this years survey nearly a quarter of respondents characterized their
model as a Global Business Services [GBS]. The additional leverage this entails, of Global process owners, enterprisewide access to data, and global definitions, supports a more effective rollout of service quality. It also supports improved
analytics on enterprise data and thereby an improved quality of business intelligence. Compared to previous years,
we are seeing a shift towards a more global model, where possible, to leverage the opportunities this creates for a
multinational business.
What is your current service

delivery model?
Mainly insourced
How many FTEs does your SSO

have (counting staff across all
global locations)?
41%
24%
GBS
In-country model
20%
More than 3000
12%
Regional SSOs
20%
1000-2999
12%
Hybrid (50:50)
19%
Mainly Outsourced
13%
Hub and spoke

Dont know
10%
4%
Chart 28
500-999
200-499
8%
16%
24%
50-109
0-49
28%
Chart 29
Three ways in which Shared Services are redefining themselves to deliver more value-add include 1) upskilling staff for
more value adding services, 2) leveraging new technology as a replacement for FTEs, and 3) relying more on data analytics.
See charts overleaf.
& Outsourcing Week

Middle East 2016
Are you implementing any of the below to redefine your service

delivery model and deliver more value?
Rely more on offshore staff (in-house or outsourced)
Rely more on outsourcing partnerships

12%
10%
37%
43%
10%
10%
11%
9%
19%
17%
12%
9%
Upskill the in-house team plus leverage new technology
Leverage new technology and reduce FTEs
9%
9%
8%
7%
19%
13%
15%
10%
25%
36%
25%
25%
Rely more on data analytics
Rely more on robotic process technology

16%
8%
9%
34%
19%
16%
23%
23%
13%
12%
18%
9%
Dont Know t
No t
No but planning to t
Testing t
Yes and maintaining levels of use t
Yes and planning to increase t
Chart 30
& Outsourcing Week

Middle East 2016
Are you implementing any of the below to redefine your service

delivery model and deliver more value? (continued)
Move from regionally focused shared services to GBS model
Shift to hub and spoke model
18%
22%
29%
43%
14%
12%
8%
9%
13%
17%
13%
2%
Shift to COE model
Move to Global Process Ownership

20%
24%
23%
26%
16%
12%
8%
11%
22%
20%
10%
8%
Cover more time-zones/ widen geo footprint

(inhouse or BPO)
More languages offered

16%
17%
42%
38%
12%
13%
8%
5%
16%
19%
6%
8%
Dont Know t
No Change
No t
No but planning to t
28%
54%
5%
4%
6%
3%
Testing t
Yes and maintaining levels of use t
Yes and planning to increase t
Chart 31
& Outsourcing Week

Middle East 2016
What this means is that SSOs are designing their models around fewer FTEs overall, in future. See Chart 31.
What will this mean for your current inhouse FTEs?

Shift FTEs offshore
26%
Shift FTEs near or on-shore
32%
24%
34%
Fewer FTEs
More FTEs
No Change
42%
52%
18%
42%
31%
30%
13%
17%
52%
44%
43%

Chart 32
While outsourcing has its place, indeed, is becoming more strategically tailored across many of its products, Shared
Services are generally still three times more likely to be insourced than outsourced, and most of the outsourcing activity
that exists covers less than 20% of total Shared Services employees. See Chart 33.
What % of your Shared Services organization is currently outsourced?

0-20% of total seats
61%
14%

Dont know
9%
6%
3%
7%
Chart 33
The new models have fully embraced the global talent pool: 40% of our respondents have most of their Shared Services
in India or the APAC region. As is expected, Asia stands head and shoulders above all other regions in terms of hosting
Shared Services employees and contains nearly three times the number of FTEs as the next region on the list. See Chart
34.
& Outsourcing Week

Middle East 2016
What % of your Shared Services organization is currently outsourced?

India + APAC
40%
North America
15%
West Europe (incl. Uk & Ireland)
14%
Central & Eastern Europe
12%
Australia & New Zealand

Middle East & Africa
9%
5%
China
3%
Latin America
2%
Chart 34
40% of respondents have most of their Shared Services FTEs in India or in the
APAC region. Asia stands heads and shoulders above all other regions in terms
of hosting SSO/BPO FTEs.
While there is certainly talk around these areas slowly losing the labor arbitrage which drove so many of the initial build
outs, extricating oneself from an existing set up is a tedious, expensive process. Instead, we may expect to see Shared
Services redefining their expectations from offshore centers, and pushing towards COEs as an alternative.
Closing Summary
This years SSON State of the Industry survey confirms that the Shared Services model is extending its reach beyond
simple cost effectiveness by moving into areas that deliver additional performance: most Shared Services professionals
(75% of those surveyed) see the model delivering value beyond cost.
Implementation of Process Excellence initiatives are driving much, even most, of this transformation.
Technology is changing the overall landscape with 68% of respondents saying they are considering or already replacing
FTEs with Technology. However, cost still underpins most of the key decisions.
Note: SSON and DART will be exploring additional research around how location and even personality traits are
affecting the drivers highlighted in this survey. Please keep an eye out for these reports.
& Outsourcing Week

Middle East 2016
Appendix 1: Almost 40% of survey respondents are in a mature (10+ years)

career phase and >35% of them have Multifunctional responsibility. >27% of
our respondents are now based in APAC, more than in North America.
Where are they located?
UK & Ireland 10%

North America 22%
Continental/Western
Europe 10%
Central and Eastern

Europe 8%
China 4%
Middle East &

North Africa 5%
India 10%
South East Asia 15%
Latin America 4%
Australia & New Zealand 15%
Which Functions Do They Represent?
Multifunction
36%
F&A
27%
15%
HR
IT
Other
5%
18%
What Are the Maturities of the

Functions/ Regions They Represent?
10+ years
39%
Their Role is
42%
30%
23%
3-5 years
28%
18%
6-10 years
1-2 years
10%
0+12 months
10%
Global
Country-Specific
Regional
& Outsourcing Week

Middle East 2016
Appendix 2: 40% of respondents work in $10bn+ organisations.

45% are Senior Managers or Executives
By Industry Size
By Seniority of Role
>10bn
Manager or Other
41%
SME
Senior Manager
25%
$2bn - $10bn
53%
21%
37%
10%
Executive
8%
Not for Profit
5%
Government
Maturity Level
Manager or Other
Senior Manager
Executive
33.9%
26.9%
14.7%
42.6%
56.8%
21.3%
24.5%
19.5%
18.2%
16.6%
13.5%
11.5%
10+ Years t 6-10 Years t 3-5 years t 0-2 Years t
Like Content like this?

Become part of the worlds biggest
and most relevant shared Services &
Outsourcing Community. FOR FREE.
Sign up online at www.ssonetwork.com/member-signup
About the Shared Services & Outsourcing Network (SSON)
About SSON and DART
& Outsourcing Week

Middle East 2016
SSON is the leading forum and network for Shared Services and Outsourcing practitioners around the
world. DART is the new global analytics center of SSON. The collaboration between SSON and DART
will move the dial in terms of offering real time, interactive and tailored information and analytics to the
services delivery industry.
SSON in Numbers: last year we witnessed...
100,000+
120 interviews
40,000
40 SSON-branded
LinkedIn Members
annual events globally
200,000+
25 columnists
Annual Website Visitors
to share tips on strategy
1,700
200
215
Members Globally
articleswith our global members
Thought-Leading White Papers
with leading practitioners
Regional Flagship SS&O Weeks
SSO Pro Graduates
150
Webinars
SIGN UP TODAY!
www.ssonetwork.com/member-signup

SSON'S Global State of The Shared Service & Outsourcing Survey Report and Analysis 2016 PDF

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

SSON'S Global State of The Shared Service & Outsourcing Survey Report and Analysis 2016 PDF

Uploaded by

Copyright:

Available Formats

Powered by:

Brought to you by:

Global State of the Shared Services and Outsourcing Industry

& Outsourcing Week

The Shared Services &