Shared Service Centres (SSCs) have become key players in the business world. These centres offer services that help companies operate more efficiently, reduce costs, and focus on their core activities. The scope of SSCs is extensive, covering areas such as financial services, HR management, and IT support, providing expert assistance across a range of functions.
As the global economy continues to evolve, more and more companies are recognizing the advantages of SSCs. SSCs not only transform corporate structures but also create new career opportunities for employees. Below, we take a detailed look at how SSCs operate, their benefits, challenges, and the career opportunities they offer.
The concept and history of SSCs
The concept of SSCs
Shared Service Centres (SSCs) are organizational units that provide centralized services to various departments within a company. The goal of SSCs is to consolidate similar processes into a single hub, increasing efficiency and reducing costs. SSCs began to emerge in the 1980s and have continued to evolve as markets and technology have transformed.
The emergence of Service Centres
The development of SSCs dates back to the 1980s when companies needed new methods to meet growing demands. The idea was to perform functional activities centrally that would be relevant to multiple business units. This approach not only resulted in cost savings but also improved service quality through standardized processes.
The evolution of SSCs
Over time, SSCs have become increasingly complex. While cost efficiency was the primary focus in the early days, today's SSCs prioritize improving customer service, enhancing business intelligence, and supporting innovation. New technologies, such as automation and artificial intelligence, enable SSCs to become even more efficient and create value for companies.
Global trends and regional specificities
The spread of SSCs has developed differently across the globe. In Western Europe and North America, SSCs have been well-established for a long time, whereas in Central and Eastern Europe, particularly Hungary, this model has gained significant popularity in recent decades. Hungary has become an attractive destination for SSCs due to favourable economic conditions, a highly skilled workforce, and language proficiency.
The future of SSCs
The future of SSCs is closely linked to the digital transformation of companies. As more businesses adopt agile operating models and digital technologies, SSCs are evolving to support these changes. Today, SSCs are not only seen as tools for cost reduction but also as strategic partners contributing to innovation and sustainable growth.
The operating model of SSCs
Centralization and standardization
One of the greatest advantages of SSCs is their ability to centralize similar processes within a single hub. This eliminates repetitive tasks and unnecessary efforts while also enabling standardization of operations. Through standardized processes, companies can provide consistent, high-quality services while minimizing the potential for errors and inconsistencies.
Cost efficiency
Establishing SSCs can lead to significant cost savings for companies. The reduction in operating costs primarily comes from centralizing processes and automating workflows. Additionally, SSCs are capable of handling larger workloads more efficiently, allowing companies to negotiate more favourable terms with suppliers.
High-quality service and expert knowledge
SSCs contribute to building specialized expert teams across different areas within companies. These teams possess deep expertise and experience in their assigned roles, which enhances the overall quality of services. The centralized model ensures continuous training and development, keeping employees up to date with the latest technologies and procedures.
Technology and innovation
The success of SSCs heavily depends on the implementation of cutting-edge technologies and innovations. Robotic process automation (RPA), artificial intelligence (AI), and cloud-based solutions all contribute to the ability of SSCs to perform tasks more quickly and efficiently. These tools not only boost efficiency but also enable the introduction of new services and solutions.
Challenges and solutions
Implementing and operating SSCs can present several challenges, such as managing change, navigating cultural differences, handling time zone disparities, and overcoming communication barriers. For a successful transition, effective communication, leadership support, and employee involvement in the change processes are crucial.
SSCs in the job market: Opportunities and career paths
Diverse career opportunities
SSCs offer exciting career opportunities across various functional areas, including finance, HR, IT, customer service, sales, and procurement. These roles allow employees to gain deeper insights into global business operations while developing their professional skills in a dynamic, multicultural environment. SSCs not only provide diverse career paths but also give employees the chance to explore multiple areas within the organization.
Professional development and training
SSCs place a strong emphasis on continuous professional development for their employees. This is achieved through internal training programs, professional courses, and mentoring opportunities. The goal is to ensure that employees remain up to date with the latest industry trends and technologies, thus increasing their market value and advancing their careers. These training opportunities are especially appealing to recent graduates and career changers looking to build their future in a growing, supportive environment.
International experience
SSCs often serve global clients, providing employees with excellent opportunities to gain international experience. Workers can not only enhance their professional expertise but also expand their linguistic and cultural competencies. In today’s global job market, these skills are highly valuable, particularly for those aiming to work in international relations or within multinational environments.
Workplace flexibility and innovation
SSCs foster forward-thinking workplace cultures with flexible working conditions. Flexible hours, remote work options, and support for work-life balance all contribute to employees performing their tasks creatively and efficiently. This flexibility also encourages innovation, as employees have more freedom to bring in new ideas that contribute to the company’s growth.
Future roles
As the business world becomes increasingly reliant on digital and automated processes, the role of SSCs continues to expand. This creates new career opportunities in technology, data analysis, artificial intelligence, and automation. SSCs are not only integral to today’s job market but also open new pathways for those looking to advance their careers in the tech industry.
SSCs in Hungary
The Hungarian market
Hungary has become a key hub for Shared Service Centres (SSCs) in Central and Eastern Europe, experiencing dynamic growth in this sector over the past decades. The country hosts more than 100 SSCs, employing approximately 40,000 highly skilled professionals. This growth is not only strategically important for the SSC sector but also for the entire Hungarian economy, as these centres contribute significantly to employment and economic stability.
Advantages of the SSC sector
One of the main factors behind the success of the Hungarian SSC sector is the benefits derived from EU membership, including a harmonized legal and regulatory framework and a stable economic environment. Hungary is also an attractive destination for investors due to its European culture and high-quality education system, which allows companies to find well-educated, multilingual talent. In addition, Hungary's favourable geographic location offers easy access to Western European markets, further enhancing its appeal.
Future trends
Looking ahead, the scope of SSC activities in Hungary is becoming increasingly complex. While low costs were once the primary draw, the focus has now shifted towards added value and sustainable operations. Over the past decades, SSCs have undergone significant transformation: instead of handling simple transactional tasks, they now focus on more complex, strategic activities. Hungarian SSCs are increasingly seeking graduates who are multilingual, highly skilled, and ambitious, capable of not only performing daily tasks but also actively contributing to process improvement and innovation.
Global trends in the SSC sector
Technological advancements and automation
Automation and artificial intelligence (AI) are playing an increasingly prominent role in the daily operations of SSCs. These technologies allow routine, monotonous tasks to be completed more quickly and efficiently while reducing the likelihood of errors. As a result, employees can focus more on tasks with higher added value, such as strategic decision-making or solving complex problems.
Service development
The role of SSCs is shifting away from transactional tasks toward more complex, value-creating services. This includes business analysis, decision support, and other strategic functions that directly contribute to a company's competitiveness. SSCs are no longer just cost-cutting tools; they have become key players supporting innovation and growth.
Labor market changes in the SSC sector
Technological advancements have a significant impact on the SSC labour market. The use of new technologies has increased the demand for workers with digital skills. Expertise in areas such as data analysis, project management, and IT knowledge is becoming crucial for future success. For SSCs, this presents new opportunities to train and develop their workforce.
Remote work and flexible working conditions
The COVID-19 pandemic dramatically accelerated the transition to remote work and flexible working conditions. For SSCs, this presents an opportunity to access talent from anywhere in the world, free from geographical constraints. The demand for flexible working arrangements is expected to continue growing and will be a key factor in SSC recruitment and retention strategies moving forward.
Final thoughts
The SSC sector plays a vital role in both global and local economies, creating new career opportunities and contributing to increased corporate efficiency. As technological advancements and the business environment continue to evolve, the role of SSCs will expand as well. They are likely to remain key players in corporate strategies, driving innovation and supporting sustainable growth.
Lőrincz Fruzsina
Recruitment Project Manager