We believe in the benefit and power of shared services.
SSC Heroes was launched 4 years ago to become the first online community for the Hungarian Shared Services sector. Our main goal has been to achieve an enhanced reputation of the industry and to spread the word that “an SSC is a cool place to work at”. This portal operates based on the latest Web 2.0 technology and on a social network principle about sharing, rating, commenting and contributing.
2016 was a turning point for the portal, when it truly became a one-stop shop for the industry. We have started our recruitment activities for shared service centers in Hungary with a unique end-to-end recruitment process that involves video interviews for the next generation job seekers. This way, besides finding information regarding companies, professions, events and more, one can easily find and apply for a job through the SSC Heroes portal.
The fundamental goals of our portal are the following:
Today, ten-thousands of online readers actively visit the site, as well as follow us on our social media channels.
You might come across the term Shared Service Center (SSC) more and more often. The establishment of SSC’s has become common practice in the last two decades for multinational corpotations. It basically means that an organization centralizes and consolidates different activities into one service-unit that supplies the other business units (internal customers) and several times external customers as well with a number of specialised services mostly based on a Service Level Agreements (SLA). The most common services in SSCs are the followings:
There are several advantages of establishing shared services out of which two are commonly referred to as being the key drivers: cost reduction which comes from labour arbitrage and resource consolidation and efficiency increase which comes from standardisation of processes and systems. Hereby let us quote a couple of sentences from the world’s largest knowledge base (Wikipedia) which explains the logic behind these arguments very well:
“There are two arguments for sharing services. The ‘less of a common resource' argument and the ‘efficiency through industrialization' argument. The former is ‘obvious': if you have fewer managers, IT systems, buildings etc; if you use less of some resource, it will reduce costs. The second argument is ‘efficiency through industrialization’. This argument assumes that efficiencies follow from specialization and standardization – resulting in the creation of ‘front' and ‘back' offices. The typical method is to simplify, standardize and then centralize, using an IT 'solution' as the means.”
XYZ Inc. operates in 120 countries all around the world. It used to have separate Finance and Accounting Departments for each of its separate business units or countries. At one point it decides to establish a Shared Service Center in a country, where high-quality human resources are available at a lower cost and centralize the finance and accounting activity in one service unit.
This service unit – called a Shared Service Center – will carry out finance and accounting activities for all of the global business units, however it will do it from one location in a cost-efficient, consolidated and standard way.
The SSC business model has proven to be highly effective for a number of reasons. First of all, due to the single-location model SSC’s require more moderate technological investments than establishing and operating multiple units. These units require less office space and human resources needs can be up to 40% lower than in decentralized models.
The SSC sector has been a huge success story in the Hungarian market. It has been continuously growing in Hungary for more than 10 years now and the latest research studies (HOA SSC Benchmarking Survey 2016, PWC Hungarian SSC Survey 2016) also show that the trend will continue in the coming years as well. SSCs are generating thousands of new job opportunities for highly-skilled professionals and this way contribute to the development of the Hungarian economy.
As of 2016 there are approx. 100 companies present in Hungary operating shared services. The industry employs over 40,000 people and forecasting a constant growth in the next years. It provides excellent career opportunities for higher-education graduates speaking multiple languages. Initial salaries in the SSC sector are amongst the highest in the country and these companies provide excellent job opportunities for Generation Y and Z instead of leaving the country for a more attractive job in Western-Europe.