BearingPoint research in financial services has stated that nearly 80% of large companies that have looked to introduce and optimise SSC models have realised cost savings of over 20%. As a result they recoup the initial set-up costs within three years.
According to BearingPoint’s calculations, moving beyond the traditional SSC and looking to optimise their models, would enable the top UK financial services organisations save around £3 billion in staff costs, £1 billion in administrative expenses and another £5 billion savings by consolidating premises, equipment and other expenses.
Location is also key, with Eastern Europe proving increasingly attractive. Although only 23% of SSCs surveyed are currently located here, 35% of respondents cited it as their preferred future location, compared to 47% and 28% respectively for their home country, and 21% and 28% for Asia.
Proservartner Point of View
: Banking, Financial Services and Insurance (BSFI) is a focus area for change at the moment, with executives facing a lot of pressure to reduce costs substantially in support services. This has led to a number of cost reduction initiatives in Financial Services with RBS, Lloyds, Barclays and HSBC spending hundreds of millions to save billions!
In terms of location, countries in Eastern Europe are battling to become a hub for shared service centres in Financial Services – currently research shows that Poland are winning!
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