MELAKA ICT HOLDINGS KNOWLEDGE DRIVEN SERVICES SHARED SERVICES & OUTSOURCING (SSO) Azuddin Jud Ismail
[email protected]
Clarification on SSO Activities
Definition of High Value Activities for SSO Technology Infrastruct ure
Business Applicatio ns
Telecoms
Vertical Applications
Device Management Hosting Customer Support
Horizontal Applications
Business Process
Business Management & Integration
Business Transformatio n
Business, Finance and Project Management
Global Business Integration
CRM, Billing Admin, Finance HR, Training Supply Chain (Manufacturin g Services)
Sourcing and Procurement Process Design and Engineering
Logistics
Research, Product Design and Development Investor Relations and Management
Marketing, Sales Market Strategy Analytics – Industry High Value Verticals (BFSI,
What is SSO? Shared Services are the convergence and streamlining of and organization's functions to ensure that they deliver the organization the services required of them as effectively and efficiently as possible. This often involves the centralizing of back office functions such as HR and Finance but can also be applied to the middle or front offices. A key advantages of this convergence is that it enables the appreciation of economies of scale within the function and can enable multi function working (e.g. linking HR and Finance together, where there is the potential to create synergies) A large scale cultural and process transformation is often a key component of a move to Shared Services. This transformation often results in better quality of work life for employees. Shared Services are more than just centralization or consolidation of similar activities in one location. Shared
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What is SSO? The term “SSO” encompasses both outsourcing and off shoring activities. “Shared Services” is and arrangement where common services are provided by a single organization levering an economies, such as outsourcing and call-center consolidation. Outsourcing is to seek resources outside of an organizational structure, usually to reduce costs and to exploit competencies of other entities. Off shoring is the provision of services from a country that is geographically removed from the client, for example, services provided to a US enterprise by a service provider located in a developing country. [Excerpt from : “Economic Report 2005/2006,” by Ministry of Finance Malaysia, p.34]
Types Of SSO Activities Information Technology Outsourcing (ITO) Business Process Outsourcing (BPO) Knowledge Process Outsourcing (KPO) NB iii.List of SSO activities presented are non exhaustive; iv.Companies may be involve in multiple activities across above segmentation v.Horizontal refer to the span of SSO activities across industries and Vertical refers to the specific industries (i.e. Finance, Logistics, Energy, Technology, Manufacturing, etc.)
Example of ITO related SSO Companies Information (ITO) :
Technology
Outsourcing
iii.ExxonMobil Business Support Center Malaysia Sdn. Bhd. v.Shell Information Technology International Sdn. Bhd. vii.Asia-Pacific Information Services (DHL) Sdn. Bhd. ix.Ericsson Expertise Center Sdn. Bhd.
Example of BPO related SSO Companies Business Process Outsourcing (BPO) : iii.E2 Power Sdn. Bhd v.DHL Asia Pasific Finance Shared Services Sdn. Bhd. vii.HSBC Electronic Data Processing (Malaysia) Sdn. Bhd. ix.IBM Malaysia (M) Sdn. Bhd.
Example of KPO related SSO Companies Knowledge Process Outsourcing (KPO) : iii.Shell Global Solutions v.HSBC Global Resourcing Ltd vii.Pulse MSC ix.PGS xi.Panasonic R&D Center xiii.Nokia Siemen
Information Technology Outsourcing (ITO) IT Service & Support – SSO activities that relates to the insourcing or outsourcing of activities relating to IT services & support
MICTH CallCente r
IT Helpdesk
Data Center
EntireTec
Tech Support M-BPO
Example of ITO Activities
DIGITAL Melaka
Hosting
K-Eco
Software Development
SAMB
Applications KTIAM Development Device Management Disaster Recovery Data Center - LHDN Horizontal (Process Specific) Applications System Integration
Vertical (Industry Specific) Applications
Business Process Outsourcing (BPO) Back-office Processing – SSO activities that relates to the in-sourcing or outsourcing of activities relating backoffice processing which typically requires plenty of manual data entry efforts. In the Finance vertical for example, this business process includes simple tasks like credit card or be expanded to include billing, call center services, transaction management, correspondence management, revenue management, collections and exception processing operations.
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Business Process Outsourcing (BPO) In Human Resource (HR) vertical – the BPO activities which are in-sourced or outsourced may include processos such as payroll processing, administration of employees’ benefits and entitlements,employee data records and management.The SSO activites under the HR may also cover performance,reward,training and exit process. Customer Services and Call Centers
Contact/Call Center
Example of BPO Activitie s
Data Entry
Billing
Finance & Accounting
Transaction Processing
Payroll Processing
Supply Chain Management
Customer Relationship Management
Human Resource Training
Knowledge Process Outsourcing (KPO) – Knowledge KPO or KnowledgeService Services are basically the higher value activities that can be consolidated within a company. These may include core and/or non-core activities within the company.
The most common form of KPO being done is Research and Development work. Companies in each industry vertical may have varying core and non-core activities. For Example, R&D work for an IT company will be different from R&D work being done in a company within the Pharmaceutical industry. Additionally, certain activities may only be specific to a particular industry.
Global Business Integration
Equity Research
Financial Modeling and Analysis
Project Management
Research, Design & Development
Sourcing and Procurement
Example of KPO Activities
Customer and Portfolio Analysis
Process Design & Engineering
Legal Research
Investor Relations & Management Market Research and Intellectual Property
Potential KPO Area for MELAKA – MSC Malaysia BFSI – Strong track record for Islamic Finance and access to BFSI players and customers. Excellent G2G relations to promote products and services to potential clients Manufacturing – natural progression to use Malaysia’s strength in traditional manufacturing activities to develop system, processes and services to support global manufacturing needs Legal – Strong legal foundations i.e. English laws, Cyber laws and Islamic laws to fuel KPO related research and analysis Medical & Pharmaceutical – Access to ready local talents (doctors, nurses) and life sciences researches, alternative medicines etc