SSC Survey „Evaluation of the shared service centre life cycle“

The SSC Survey 2012 conducted by PwC and the Slovak Investment and Trade Development Agency (SARIO). The objective of our SSC Survey “Evaluation of the shared service centre life cycle“ was to determine the performance level of existing SSCs in Slovakia and Czech Republic and classify SSCs using the SSC assessment model developed by PwC (SSC life cycle model).

Key findings from the respective sections of the survey:

Strategy for the SSC
  • Cost reduction is still the most important target for SSC projects
  • ‘Moving up the value curve’ is a key trend for most SSCs - quality and speed of processing in particular
  • Most SSCs have clearly defined strategies as expected according to the level of their maturity stage,
Organization/governance/compliance in the SSC
  • Most SSCs use the cost centre concept with costs allocated based on services provided
  • SLAs are in place in more than 70% of SSCs
  • 70% of all SSCs use critical control systems
  • More than 90% of the SSCs use automatic controls to some extent; however, only 8% consider that they already automated the control processes wherever possible and practical
Continuous improvement in the SSC
  • Six Sigma is the most popular tool employed (30% of SSCs have Six Sigma), but the majority of SSCs have not yet developed tools for continuous improvements
  • Customer relations are key and 70% use regular surveys to assess the SSC’s performance in this respect
Business processes in the SSC
  • Only 15% of SSCs place a significant focus on the appointment of a board to oversee the SSC
  • There is still space for improving process management and governance by implementing clearly defined end-to-end process ownership and finally arriving at a single corporate end-to-end process owner
Customer relations in the SSC
  • Half of all SSCs provide services to internal customers only
  • At least once a year, a satisfaction survey is performed in 69% of SSCs
  • Highest quality of services provided is one of the key features of the service culture in the SSCs
Performance management and HR indicators
  • 77% use balanced scorecard approach and 90% have employee development plans in place
Systems and technology in the SSC
  • 40% of the companies indicate that the workflow tool is used in almost all relevant processes KPIs
  • Almost half of all SSCs claim to achieve operational cost savings higher than 30%
  • Around 15% of survey participants see greater than 70% improvement in productivity as a result of SSC implementation
  • 73% of all SSCs receive a customer rating as “good” or “very good” from more than 60% of their customers
  • Cost reduction targets have been exceeded in 27% of all survey participants
Outlook
  • 88% of SSCs will continue to operate and do not plan to scale down the processes
  • Only 42% confirmed that they would keep the current location if asked again
  • The most often cited areas for improvement which the SSCs plan to work on included: ERP system implementation and its full operation, Automation of processes, Talent attraction and retention, Productivity growth, Enlarging the scope of services provided while at the same time maintaining a good balance of costs and quality, Attracting new customers