Annual Shared Services and BPO Conference 2013

Locating your shared services

organisation - how innovative

should you be?

Elias Van Herwaarden & Frederik de Witte

Coloplast, Morgan Stanley, Schneider Electric, Systemax, Deloitte

Introductions & Agenda

Introductions

• Sandy Price, General Manager,

Systemax

• Sheila Welch, Global Head of

Workforce Strategy, Morgan Stanley

• Wojciech Faszczewski, Managing

Director, Coloplast Finance Europe

• Stephane Haesaert, VP EMEA

Finance Shared Services, Schneider

Electric

Agenda

•Company snapshots

•Latest trends in shared services

locations

•Key success factors for selecting your

shared services location

•How to win in the war for talent

•How to allocate processes

•Why you should, or should not locate off

the beaten path

•Audience Q&A

Company profile

• 1957

• 8,300 employees

• €1.5bn (2011/12)

• +25 countries

• Coloplast develops products and

services that make life easier for

people with very personal and private

medical conditions. Our business

includes ostomy care, urology and

continence care, and wound and skin

care.

Shared services profile

• 2009

• Allow local business to focus on the

market, improve management

information, increase transparency,

cost efficiency, increase effectiveness,

faster integrations of acquisitions and

software

• 1 Centre: Szczecin, Poland, ~140 FTE

• Finance, IT, HR, Procurement

Company profile

• 1935

• 58,000 employees

• Over 30 countries

• Financial Services

Employee Global In-House Centers

• 2000

• Access to talent pool, cost reduction,

improved global coverage.

• 9 centres

• Over 3,000 employees

• Largely back-office functions

Company profile

•1836 - Creation of Schneider at

Le Creusot, France

•140,000+ employees in 100+ countries

•24bn of sales in 2012 (of which 41%

in new economies)

•4 to 5% of sales devoted to R&D

•The global specialist in energy

management making energy…

Safe, Reliable, Efficient, Productive

and Green

Shared services profile

• Global SSC journey started in 2009

with “One” company program

• Increase controls, spend less, do

better, develop people, integrate

• 5 regional centres: Monterrey,

Bangalore, Cavite, Beijing/Wuhan,

Warsaw

• Finance, IT, HR, R&D, Marketing,

CCCs

Company profile

•1949

•5,600 employees worldwide

•$3.7 bn (2011)

•Fortune 1000 Company (NYSE:SYX)

•Global presence – North America,

Canada and Europe

•E-commerce, distribution, retail and

B2B. Brands include TigerDirect,

CompUSA, CircuitCity & Misco

Shared services profile

• Systemax Business Service – 2012

• Budapest centre supporting 13

countries in Europe

• HR, Marketing and IT Support

• Transition of above on going

• Further functions approved August

2013

The latest trends in shared services locations The location analyst’s view

-

10,000

20,000

30,000

40,000

50,000

60,000

70,000

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Total FTEs

Asia-Pacific

Western Europe

Central & Eastern Europe

North America

Latin America & Caribbean

Middle East & Africa

© 2013 Deloitte LLP. All rights reserved

The latest trends in shared services locations Something you need to know …

8 Annual Shared Services & BPO Conference 2013

Location

attractiveness

Time

Emerging Hotspot Hotspot Proven destination

Under the Radar

Location

War for

talent Modest Fierce Stabilized None

Key

attributes

Low costs

Talent availability

Stability

Talent quality

Infrastrcutures

Reliability

Low risk Low costs

Process Moderate V-A

Increased interaction

High V-A

Increased

Consultation

Highest V-A

Consultation, MIS Low V-A

Sele

cte

d l

ocati

on

featu

res

Location categories

The latest trends in shared services locations Europe: peer group comparisons – last 3 versus last 10 years growth

What still gets bigger What’s hot What’s new

City Growth

Budapest 26%

Greater Barcelona 20%

Bucharest 18%

Belfast 25%

Glasgow 20%

Poznan 54%

Sofyia 43%

Greater Madrid 25%

Bratislava 31%

City Growth

Dublin 49%

Wroclaw 44%

Krakow 44%

Berlin 78%

Galway 85%

Vilnius 82%

Cluj-Napoca 67%

Greater Gdansk 63%

Tmisoara 57%

What’s not

City Growth

Prague 14%

London 24%

Warsaw 18%

Cork 21%

Brno 20%

Brussels 20%

Lisbon 20%

Copenhagen 0%

Tallinn 14%

City Project

s

Sibiu 3

Vienna 1

Leipzig 2

Istanbul 2

Iasi 1

Drogheda 2

Kaunas 1

Peterlee 2

Leicester 1

Proven destinations–28% Hotspot locations–30% Emerging destinations–32% Under the radar locations-21%

Legend and peer group average growth

Key success factors for selecting your location

How to win in the war for talent

Here?

Or there?

Process allocation

On / Nearshore

“Local / Regional”

Offshore

“SSC / Hub”

Continuous value creation Goals Structural cost reduction

Highly interactive, consultative Interaction Limited interaction, transactional

Knowledge-based Value-add Script-based

Multilingual / High proficiency level Languages English only / Medium – low proficiency

Newcomers to shared services Maturity Experienced shared services operators

Why you should, or should not locate off the beaten path

Proven destination

Hotspot location

Emerging destination

Under the Radar Location Plovdiv

Varna

Sofia

Bucharest

Chişinau

Budapest

Prague

Krakow

Warsaw

Gdansk

Lublin

Bydgoszcz

Wroclaw

Braşov

Timişoara

Cluj-Napoca Iaşi

Acs

Székesfehérvar

Pécs

Szombathely

Miskolc

Debrecen

Békéscsaba

Szczecin

Mierzyn Poznan

Katowice Rzeszow

Olsztyn

Czestochowa

Lodz

Plzen

Cezka Lipa

Rudna

Kosice

Trebic

Brno Zlin

Ostrava Olomouc

Pardubice

Nové Zamky

Nitra

Bratislava

Piest’any Presov Kosice

Q & A

Annual Shared Services & BPO Conference 2013 14

Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), a UK private company limited by guarantee, and its network of member firms, each of which is a legally

separate and independent entity. Please see www.deloitte.co.uk/about for a detailed description of the legal structure of DTTL and its member firms.

Deloitte LLP is the United Kingdom member firm of DTTL.

This publication has been written in general terms and therefore cannot be relied on to cover specific situations; application of the principles set out will depend upon the particular

circumstances involved and we recommend that you obtain professional advice before acting or refraining from acting on any of the contents of this publication. Deloitte LLP would be

pleased to advise readers on how to apply the principles set out in this publication to their specific circumstances. Deloitte LLP accepts no duty of care or liability for any loss

occasioned to any person acting or refraining from action as a result of any material in this publication.

© 2013 Deloitte LLP. All rights reserved.

Deloitte LLP is a limited liability partnership registered in England and Wales with registered number OC303675 and its registered office at 2 New Street Square, London EC4A 3BZ,

United Kingdom. Tel: +44 (0) 20 7936 3000 Fax: +44 (0) 20 7583 1198.

Annual Shared Services & BPO Conference 2013 15