Business Process Outsourcing (German Edition)

Home to a large and culturally diverse labor pool of highly qualifi ed and motivated people with international work experience and foreign language ability, Germany is an excellent location for pan-European and other international projects. High productivity rates and steady wage levels make Germany an extremely attractive investment location for the service sector.

business process outsourcing (bpo) - Turkish translation - www.newyorkethnicfood.com English-Turkish dictionary

Moreover, German companiesare extremely satisfied with the SSCs established: Key development drivers are the ready availability of qualified personnel,stable labor costs, and low labor turnover rates. Front office and middle office services currently dominate the market, but back office services are forecast to have the largest growth potential. Front office has a forecast CAGR of around 6.

Potential outsourcing volume created from within the German business environment has forecast at around EUR 32 billion.

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Around one third of German companies plan to outsource business processes within the next two-year period. See how they did it.

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According to Maximilian Thomiak, Managing Director of Accenture GmbHand head of the Integrated Business Services Practice for Germany, Switzerland and Austria he is also a veteran of Hackett , those companies that have understood the value of, and have committed to, integrated business services are a whole step closer to getting there. However, for most companies this is a two-, sometimes three-stage journey. Though we may quibble about what exactly defines multi-functional there are as many shades of "multiple" as there are "functions" , what's certain is that most companies have recognised that where one function for shared services is good — more functions are better.

Multi-functional models are going to become more familiar in the German services landscape. Scale and size of operations is a key factor supporting this trend, as is increasing familiarity with the shared services model. Of those not currently pursuing a multi-functional approach, most fall into the category of being hampered by organisational rigidity, turf wars, or other political concerns.

In some cases, these are still proving to be fairly insurmountable barriers.

GERMAN OUTSOURCING ASSOCIATION

While this type of protectionism against new services delivery models is still strong within Germany, many practitioners believe that new markets, like Asia, or new segments, like e-commerce, will offer an opportunity for these barriers to drop away. The strategy that currently tends to be the most popular for German companies is to consider global services delivery for US, Latin American, and Asian markets, but to keep the German market, as well as a few other continental European ones, closer to HQ. Daimler runs three global hubs: Rather, services are supplied based on divisional, geographic, and process classifications.

Moreover they are developing into a global backoffice location for suitable services for the entire Daimler organisation. Madrid was the first centre to go live in — in response to the crisis that hit the auto industry back in , and which required some speedy reactions on the part of car companies.

The company is well known for the excellence of its financial reports, and maintaining, even raising, this quality standard was a top priority for the entire group. Many would, at this stage, be ripe for outsourcing, or at least offshoring. And with many German companies having set up centres in major cities such as Cologne, Munich, or Berlin, relocating would certainly offer some opportunities for arbitrage.

This might mean leveraging a specifically strong capability or the global reach or the proven platform of a provider. Times are changing, however, and with the economic environment still a challenge, more companies are focusing on their core competencies, and considering creative partnership arrangements with third parties that offer advantages in technology, analytics, or services.

Another factor that may fuel more outsourcing activity is expansion into new, lucrative markets like Asia, or Latin America, where the infrastructure is not yet developed and an organisation may have more flexibility to manoeuvre. However, not all people agree on this point.

This means that companies like Daimler will still prefer to move into new markets through captive centres, leveraging their own, experienced management, despite the additional cost of expats.

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Before outsourcing becomes an accepted business practice, however, companies will first have to convince their boards and shareholders that handing over a part of the business to outside providers, especially offshore, does not mean relinquishing control. Providers could meet these concerns halfway by building up strong delivery centres in Germany, which could or could not leverage a global footprint. And while the report quotes front and middle office services as dominating, it foresees "the largest growth potential" for the back office.

Having thus established an in-country BPO presence, HP is able to leverage a global name with native knowhow. Another option for strengthening confidence in the BPO model would be for providers to first develop relationships with the American, Latin American, or Asian operations of German companies, and prove themselves in those regions. Where we do see a more forward thinking approach is in Greenfield areas, for example e-commerce. This represents a growing market for IBM and other providers, and it is here that German multinationals are showing more interest in partnering for globalized services delivery of back office support functions.

"business process outsourcing (bpo)" in Turkish

The digital sector presents a good opportunity to partner with a provider who has built up considerable expertise in e-commerce, while there are none of the traditional hurdles to overcome existing workforce or infrastructure that would counter outsourcing as an option. As a result, the MidCap represents a very interesting market for firms like Accenture.

Moving to multi-functional from the start overcomes the scale issue, while at the same time, allowing these companies to leapfrog across the kind of structural complexities that have hindered those that have gone before. MidCap companies are thus finding themselves able to realise the value of integrated business services sooner, by developing growth strategies aligned with the kind of integrated support services that many of the more traditionally structured companies can only dream of.

The fact that this segment is, collectively, large in scale indeed, it represents the majority of Germany's market means that what starts as a trickle may rapidly turn into a flood, especially as practitioners like Thomiak see it as a market with "enormous growth potential," and most companies recognise the complexity trap of continued, fragmented growth.