The key benefits of Globalization are cost savings. However, the growing trends suggests the changing perception of Shared Services as strategic business units for service & operational excellence Create job enrichment & augment skills of internal support employees and customers of the service To meet the changing landscape of business, companies are expanding the use of shared services for processes in more complex and knowledge-oriented areas that have traditionally been closer to business i.e. R&D, Engineering, Sales & Marketing, Analytics etc

1. Overview of Shared Services Globalization in APAC
(Executive Summary)
October 2013
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3. Topics Covered in the report
1
Overview
2
Captive Trends
(Available in Full Report)
3
F&A Landscape & F&A Globalization
(Available in Full Report)
4
HR Globalization and Sales Operation
(Available in Full Report)
5
Procurement
(Available in Full Report)
6
Business Function Talent Pool Split
(Available in Full Report)
7
Case Examples
(Available in Full Report)
8
Key Challenges
(Available in Full Report)
3

4. Overview
Cost savings along with enhancing process efficiency are two main factors due to which
companies globalize their Shared Services
Insights
Key Drivers for Shared Services Globalization
Impact Level
 The key benefits of Globalization are cost
Cost Savings
Enhancing efficiencies through
standardization of services & processes
savings. However, the growing trends
suggests the changing perception of Shared
Services as strategic business units for
service & operational excellence
 Create job enrichment & augment skills of
Support corporate strategy
Enable flexible growth
Access to talent
Access to new markets
Sources: Talent Neuron Quarterly Events & Talent Neuron Surveys 2012 & 2013
internal support employees and customers
of the service
 To meet the changing landscape of
business, companies are expanding the use
of shared services for processes in more
complex and knowledge-oriented areas that
have traditionally been closer to business
i.e. R&D, Engineering, Sales & Marketing,
Analytics etc
Talent Neuron
4

5. Overview
Companies have been increasingly off shoring/outsourcing their support functions
Globalization Maturity of various functions
HIGH
F&A
IT*
R&D*
Globalization Rate
Customer
Support
Human
Resources
Procurement
Today companies have matured
globalizing their R&D and IT
activities
Sales
Operations
Marketing
Sales
LOW
Laggards
Process such as lead identification, requirement
analysis and delivery management are expected
to be increasingly globalized
Rapidly Growing
Mature
MATURITY
Source: Talent Neuron
Talent Neuron
5

6. Overview
Countries across APAC, EMEA and LA are preferred locations with their unique advantages
and disadvantages
Ireland
Eastern Europe
China
India
Costa Rica
Egypt
Malaysia
Philippines
Sri Lanka
Brazil
South Africa
Australia
Current ‘hot’ Global locations
Argentina
Potential alternatives
Key Cities
Source: Talent Neuron
- Metro Manila
- Bangalore
- Chennai
- Gurgaon
- Hyderabad
- Cebu City
- Mumbai
- Kuala Lumpur
- Selangor
- Dalian
- Chengdu
- Guangzhou
- Johannesburg
- Krakow
- Colombo
- Shanghai
- Beijing
- Glasgow
- Wuxi
- São Paulo
- San José
Talent Neuron
6

7. Overview
India, Philippines and China lead the pack of countries that are suitable for globalizing
Shared Services
Cost Attractiveness Vs Globalization Suitability
HIGH
Canada
Globalization
Suitability
India
China
MEDIUM
Ireland
Australia
Singapore
Philippines
Poland
Spain
Czech Republic
New Zealand
Mexico
Russia
Chile
Argentina
Brazil
Turkey
Costa Rica
Ukraine
LOW
LOW
MEDIUM
HIGH
Cost Attractiveness
Note: Recent dollar appreciation has enabled India and Philippines to increase the cost arbitrage
Talent Neuron
7

8. Captive Trends
In the recent past, India has garnered a lion’s share in terms of number of Global In-house
Center setups with diverse set of models
Captive centers (GICs) per geographic
region
Activities per geographic region
India
# of Centers
China
Rest of Asia
CEE+Russia
Others
100
90
146
80
70
60
80
52
50
40
52
30
20
5
India
China
11
Rest of South Africa
Asia America
Source: Zinnov Research, Prof. Illan Oshri
9
CEE & Ireland
Russia & Wales
22
10
0
2
10
6
28
29
6
Talent Neuron
8

9. Key Challenges
Attrition and lack of experienced talent with domain knowledge are key challenges
companies are facing in the global centers/operations
• Attrition in most companies has ranged between 8%-22%
in the last 3 years
• Increased competition for talent from service providers
and lower compensation levels are key reasons
Attrition
• Lack of domain expertise and proper
understanding of regulatory, quality and
security compliance processes
Right
Levels of
Training
Process
Adherence
• Organizations are not able to determine the
right training (process training,
spoken/written language training and
cultural sensitization training) programs for
their staff
Key
Challenges
• Lack of career progression, low
compensation and minimal customer
interface lead to low morale amongst
shared services employees
• Employees are not culturally well aligned
to the parent organization
Language
Expertise
Culture and
Morale
Domain
Knowledge
• Hiring talent for translation-related jobs is
difficult ,and this in turn hinders the process
efficiency
• Scaling language experts to the required
level normally takes time and this impacts
the quality of work.
• Since the industry is yet to attain maturity, companies find it
difficult to hire professionals with about 8-10 years experience
Source: Interviews with key industry stakeholders at leadership levels, Talent Neuron
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