Faced with
the current fast pace and complexity of the global marketplace, companies
have very few trusted paths to success. However, two guidelines that
always point companies in the right direction are:
1. Concentrate on what you do best.
2. Be as efficient as possible.
Consequently, Business Process Outsourcing ("BPO"), the
contracting of non-core business processes to a specialist outsource
partner, has now become a trend. Non-core processes consist of the
essential day-to-day operations that are universal in the corporate
world, like accounting, human resources, and procurement. As a business
strategy, BPO allows companies to |
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consolidate and streamline their
"back-office" operations and focus on their core area
of expertise to maximize the potential benefits of the EMU. An important
factor that raised interest in BPO is the slowing of the global
economy which resulted in companies adopting prudent fiscal strategies
and cost cutting exercises.
Although larger companies have the most to gain from BPO, for they
operate across borders and have sizable 'back office' (administrative
and transactional) departments, it is an appealing prospect for
large and small operations alike. As multiple processes are outsourced,
synergies can be identified. Thus, smaller companies can benefit
from the pan-European reach of the outsourcing partner, because
these partners can help them manage operations in countries where
their resources are limited.
Companies can centralize one or more activities, or operations,
for an entire regional market in a single office, or office warehouse
combination, to create and enjoy the benefits of economies of scale,
increased efficiencies and resultant cost savings. However, a complexity
presented by operation centers, particularly in Europe, is the need
to gather a group of professionals from many different countries
under one roof to work together. While Europe often presents itself
as a single entity on the world economic stage, it still consists
of Germans, Frenchmen, Italians, and Spaniards with vastly divergent
business cultures. To avoid problems associated with this diversity,
some companies have even gone so far as to set up e.g. a virtual
Shared Service Center, which centralizes administrative functions
in a company's system, but not in an actual physical location. At
any Operation Center (or SSC), people management and team building
are essential.
And this is exactly where one of the great advantages of the Netherlands
comes into play. The Netherlands has a diverse multicultural and
multilingual nature and a long tradition of bringing Europeans of
different nationalities together on neutral ground. This makes it
the ideal location for pan-European operations such as an SSC, where
serving a common interest is of the essence. |