In 2006, the global shared services and outsourcing (SSO) market was valued at approximately US$930 billion and is projected to reach a market size of US$1.43 trillion by end-2009, at a compound annual growth rate (CAGR) of 15 percent, according to Frost & Sullivan estimates. Offshoring, which accounts for a tiny fraction of the total pie, is expected to grow at twice that rate.
SSO has been employed by companies worldwide as cost saving solution that streamlines processes in an effort to improve overall business efficiency.
While the cost benefits and other value proposition appear compelling, concerns with outsourcing include loss of control; risk of breach of confidentiality and intellectual property; service quality levels; and shortage of skilled workforce due to high attrition resulting in escalating costs.
Kam Soon Siew, ICT consulting director, Frost & Sullivan feels that as the SSO industry matures beyond cost arbitrage, offshoring is increasingly expected to enhance regional and global business competitiveness. He adds that moving from low-cost functions like applications development and back-office processing, more Fortune Global 500 companies are offshoring high-end functions such as research and development, and increasingly demand greater integration between functions to best derive value from offshoring.
“This has given rise to vertical integration requirements that places greater emphasis on the ability of a location or hub to complete the eco-system for specific verticals. We believe that SSO by vertical concentration or focus is the next big thing in offshoring,” says Mr. Siew.
In its second year, the Frost & Sullivan 2008 Global Shared Services And Offshoring Summit, to be held from 5 – 6 June 2008 at the Grand Copthorne Waterfront, Singapore, will see industry veterans and prominent industry leaders share their thoughts and experience on the growing trend of vertical-based SSO operations. The two-day executive MindXchange summit will provide a unique blend of perspectives on the current and future state of the SSO landscape including key drivers and constraints, spending trends, location selection criteria and top-of-mind locations for different industries. Approximately 200 delegates from five major industries across Asia Pacific will converge at this knowledge-sharing session.
In addition to an engaging MindXchange program, the delegates will experience the operational process of Trusted Hub processing - a SSO centre for the Ministry of Defence (MINDEF) Singapore, ST Electronics’ e-Services centre, and Siemens Pte Ltd Service Centre, on the second day of the summit.
These site tours will offer a first-hand look at the workings and daily operations of established shared services centres, insights into the workings of global shared services operations, and an exclusive tour of home-grown shared services organisations in Singapore. Besides a combination of presentations and on-site facility tour, delegates will be able to meet with key department staff members as well.
The summit emphasises on the increasing vertical approach of SSO, instead of the functional approach. The trend of setting up Vertical Centres of Excellence (VCE) is growing and the summit aims to discuss the value proposition offered by locations like Singapore, Manila, Shenzhen and Bangalore.
iDA Singapore is a strategic partner for the summit and Business Today and ZDNet Asia are the official media partners.
For more information/registration details, please visit frost-gss.com. Media passes are available to the press. To register for the summit, you may also send an email to Neethiya Sadagopal, Corporate Communications at neethiya.sadagopal[.]frost.com with your full name, media/company name, title, telephone number, fax number and email.
About Frost & Sullivan
Frost & Sullivan, the Growth Partnership Company, partners with clients to accelerate their growth. The company's TEAM Research, Growth Consulting and Growth Team Membership empower clients to create a growth-focused culture that generates, evaluates and implements effective growth strategies. Frost & Sullivan employs over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 30 offices on six continents.
Corporate Communications – Asia Pacific