1. technology and computing
2. hardware
3. computer
4. portable computer
5. laptop

Shared Services
Centers
Managing Global Business: Dell Case Studies
April 2015
About Presenters
Adriana Černáková
Education:
Jan Jalc
Education:
Masters in business, EUBA
Secondary Grammar School,
Srobarova, KE
Work experience Dell:
Work experience Dell:
Internal audit 2 years
Sales compensation 2.5 years
2
Dell - Internal Use - Confidential
Portfolio Manager 1 year
Project Manager 2 years
Catalog Manager 1 year
Finance Analyst 2 years
Technical Mentor 1 year
Technical Support2 years
Miloš Ziman
Education:
PhD. in Mathematics, Comenius
University BA
Work experience Dell:
Tax Systems 3.5 years
Guest Speaker’s Introduction
Petra Sipova
Services Finance Consultant
• Master of Business in Economics
• 2 years at Dell: Finance Technical Support Sr.
Manager; member of the Finance Leadership team
• 16 years in Finance
• Prior to Dell: Lenovo, Accenture, Dell, Orange
(FP&A, AR, AP, Financial Controlling)
• Like sports, art, write a blog from travelling
3
Dell - Internal Use - Confidential
What will you learn..
• What is SSC
• Where are they located and why
• Why are we doing this
• What are the stages of evolution
• Dell SSC initiatives
4
Dell - Internal Use - Confidential
What is what..?
Shared services center
• a center for shared services in an organization – is the entity responsible
Shared
services
center
for the execution and
the handling
of specific
operational tasks, such as
accounting, human resources, payroll, IT, ..
Outsourcing
• In business, outsourcing involves the contracting out of a business
Outsourcing
process to another party. Core functions are not outsourced.
Offshoring
• The relocation, by a company, of a business process from one country to
another—typically an operational process, such as manufacturing, or
Offshoring
supporting processes, such
as accounting. Offshoring drivers also include
access to qualified personnel abroad, in particular in technical professions,
and increasing speed to market.
5
Dell - Internal Use - Confidential
Pre-work
Using internet describe in few sentences main differences
between shared services, offshoring and outsourcing.
Dell - Internal Use - Confidential
Introduction to
SSC
7
Dell - Internal Use - Confidential
SSC Structure
Conventional Divisional Structure
Shared Services Center Structure
Head
Office
Business
Unit 1
8
Business
Unit 2
Head Office
Service
Departments
Service
Departments
Service
Departments
Operating
Units
Operating
Units
Operating
Units
Dell - Internal Use - Confidential
Shared Services
Center
Business
Unit 3
Business
Unit 1
Operating
Units
Business
Unit 2
Operating
Units
Business
Unit 3
Operating
Units
Why to establish SSC?
Strong Candidates for
Shared Services
Poor Candidates for
Shared Services
Leading Practice Costs
Current Cost
Benchmark
Strategic\Consultative
Type of Process
Transactional\Administrative
No Potential to Standardize
Standardization
Standardization Exists or High Potential
Low
Transaction
Volume
Highly Complex
Complexity of
Tasks
Volatile Content
Stability
Source: Administrative Services Transformations - University of Michigan
9
Dell - Internal Use - Confidential
High Costs Comparing to Benchmark
High (e.g., more than 10 a day)
Simple, Repeatable
Static Content
Challenges and Solutions
Declining Cost Savings
Limited Business
Knowledge
Cultural Differences /
Language Requirements
• Very experienced staff on site (expats)
• Intensive knowledge transfer
• Awareness of cultural differences
• Adaptation of management style
Physical Presence
• Clear corporate policies
• Internal governance
Talents Shortage
• Creation of talent pool
• Motivation beyond salary
Legal / Compliance
10
• Executive support / Willingness to
invest in new SSC
• Strong business case
Dell - Internal Use - Confidential
• Compliance co-outsourcing
Where to place SSC – Why Bratislava?
11
Dell - Internal Use - Confidential
Evolution of SSC
12
Dell - Internal Use - Confidential
Evolution of Shared Services
• Shared Services adopted
because of:
Share
Improve
Expand
13
•
•
•
•
•
Process efficiency
Cost reduction
Process quality
Data visibility
Improved service levels
• As it evolves, maturity of the
population and increased
responsibility  process
ownership
• Evolution continues further as
the transactional work is sent to
the newest low-cost location &
matured SSC attracts more
complex and more senior roles
Evolution – Value Generation & Change Impact
HIGH
Value
Generation
Mature
SSC/COE
Organisational Churn
and Upheaval
Benefits of Maturity
End to end process
ownership, Best Practice
& Value Creation
Business Process
Improvement
Capability Building
Stability, change is
incremental
Consolidation
Savings
HIGH
LOW
Maturity Over Time
14
Dell - Internal Use - Confidential
Change
Management
Impact
Dell Bratislava | Site Milestones
European
Business
Center
Site with
Global
Functions
Global
Business
Center
2010
German
Call
center
2007
2005
2004
Hiring EMEA
financial roles
& first
2003
marketing
300 FTE in roles
Tech Support
Launch of
sales &
customer care
First finance
front office
team in place
German
sales &
customer
care
included
EMEA
Finance
Shared
Service
Center
growth
1500 FTE wide range
of front and
back office
functions
EMEA
Marketing
center
growth
Global
Business
Center
2013
Site supporting 20
Multi language languages in
site supporting customer facing
15 languages in roles
customer facing EMEA Financial
roles
Headquarter with
First global roles global
responsibilities
on site
Global functions
present on site
Dell Bratislava
exporting talent
to other sites
2015 and
beyond
Global finance
responsibilities
and continued
expansion in
Global roles
43 nationalities
13k hours
community
contribution in
2014
SSC in Slovakia
and Bratislava
16
Dell - Internal Use - Confidential
2nd largest industry in Slovakia
• 30 – 40 K employees in ~30+ centers
• Main activities: Finance, IT / Technical
Support, Customer Service, Project
Management
• Started as English or German, but
expanding to multiple other languages
• Mostly CEE / EMEA support but
expanding into US / WW support
• Taking over more complex tasks and
end-to-end processes.
• Came for cost, stayed for quality
SSC in Slovakia in numbers (1000+ employers)
9 8 7 6 5 4 3 2 1
JCI
Kraft
Siemens
Dell - Internal Use - Confidential
HP
DELL
T-Systems
AT&T
IBM (ISC)
www.sario.sk (2012-2014)
T-Com
Future of SSCs
20
Dell - Internal Use - Confidential
SSC future
21
Dell - Internal Use - Confidential
Key Learnings
Q&A
22
Dell - Internal Use - Confidential
Key Learnings
SSC is an entity responsible for the execution and the
handling of specific operational tasks.
SSC brings Cost benefits, Standardization, Process
efficiency and Improved service levels
People are key for success.
Main activities: Finance, IT / Technical Support,
Customer Service
Moving towards Global SSCs becomes critical.
SSCs hire young educated people, create new jobs
every year and care about local communities.
23
Dell - Internal Use - Confidential
Q&A
24
Dell - Internal Use - Confidential