What are the most important aspects that should influence your decision of SSC localization?
Central Eastern Europe is still a vibrating and a developing region, with a strong value proposition when it comes to planning the location of a global SSC. It is already a long history when the first multinational companies decided to centralize their transactional administration processes. There was a certain tendency of moving from classic outsourcing to nearshoring and finally, farshoring models finding India and other Asian countries the best price-value decisions for location projects, however, the story has changed dramatically geographic-wise as a function of centers moved from back-office to decision making front office functions and become a so-called center of excellence. We describe in this paper of criteria that should be analyzed when making the decision which country and city to choose in the CEE region.
Background
We are a team of professionals, with more than 20 years experience in Business Process Outsourcing industry supporting operation and set-up of shared service centers (furthermore “SSC”), business process outsourcing centers (furthermore „BPOs”) in Central Eastern Europe (furthermore “CEE”) region.
BPiON is a new wave accounting and payroll outsourcing company focusing on process and technology-driven services, supporting SSCs as well. The novelty of our service affords us access to best practice processes of various companies around the world.
Criteria
Irrespective of what maturity SSC you plan to set up -simple focus on cost arbitrage on centralized transactional recordings or deploy value-added services-, certain qualitative and quantitative assessments should be performed.
We grouped the criteria into 4 main sections, such as:
+ Talent Access
+ Cost
+ Infrastructure
+ Strategic location advantage
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