In the office sector, SSCs are a main component of demand, as well as, a vehicle for inward investment across CEE.
Gary Morrell had a conversation with the Chief Executive Officer and founder of CEE Business Media Inc., Thom Barnhardt, who has been working for CEE for twenty-five years. The companies do the arrangement of awards events for investors into the region, inclusive of the CEE X-Tech, Japan-Europe Investment Awards in Tokyo, CEE Business Services Awards Awards in Warsaw, as well as, the United States of America-CEE Investment Awards in New York.
When Barnhardt was asked that if he could define Shared services centers in the context of CE, he responded by saying that Shared services centers stay subsidiaries of the parent holding firm, and offers services to their global Head Quarter, as well as, offices located all across the world. The main reason behind this is that when centralizing commonly-used internal services are used by all subsidiaries like Human resource services, Accounting and Finance, Information Technology, etc., the firm can save a huge amount of capital by streamlining these processes, as well as, proving them from a lower-cost location.
So, for an instance, ExxonMobil made a decision so many years ago that rather than having separate Accounting and finance functions in every Europe’s country, what it could do is centralize this process in Budapest. Consequently, services would expand naturally into common, technology, Human Resource services, etc. Other than this, unavoidably, as the firm’s management get comfortable with the quality of the services being delivered, the Shared services centers (also used in the context of as a business services center, captive service provider, worldwide business services or center of excellence) starts to give provision of more value-add services. We can see this is firms like State Street or Morgan Stanley.