SSO Challenge: Defining Output Value in Dollar Terms

Interview with Ehsan Shammasi, Head of HR Shared Services – Al Tayer Group As the Middle East continues to heat up as a location for Shared Services, we interview the chair of the forthcoming Shared Services and Outsourcing Network Shared Services & Outsourcing Week Middle East 2016.

Q: What is a defining characteristic of Middle East economies that might require some reassessing of the the standard Shared Services model? Ehsan Shammasi: The dependency on oil revenue and the recent fall of oil prices have put pressure on the Middle East economies. Government and Private sectors have started to rethink their operating models and their focus is shifting from growth mindset to consolidation and cost saving mentality. This change is a key driver in the way the region is now looking at Shared Services.

Q: What are main drivers for Shared Services across the Middle East right now? ES: The key drivers in Shared Services organizations across the Middle East are: (1) Driving efficiency through process alignment, (2) Driving cost savings through optimization of resources, (3) Automation and online service delivery.

Q: Where do you see key opportunities emerging? ES: Shared Services in the Middle East have great opportunities to grow as key business enablers that can help businesses to optimize their resources and develop an improved focus on core business activities. Key functions such as HR, Finance, and Procurement are evolving in the region and Shared Services in those functions are generally at infancy stage. The potential to grow and evolve is extremely high. I believe we will witness one of the highest growth rates globally within Shared Services in terms, of the number of newly formed SSOs over the next two years.

“I believe that most SSOs have difficulties in communicating their outputs in a language or format that demonstrates their value-add in dollar terms.”

Q: What are 3 things on your list for the 3 years ahead? [ ES: (1) Robotic Process Automation, (2) Customer Centricity in Shared Services, (3) SSO Profit Center Model

Q: What are key skills needed in SSOs servicing the Middle East? ES: Customer Service, Problem Solving, and Communication.

Q: Where are the key opportunities for driving value? ES: There are many opportunities to drive value within Shared Services. Data Analytics in finance and procurement, concierge services in HR, and change management and integration in mergers and acquisitions are some.

Q: What are some of the most significant SSO outputs that support the enterprise? ES: SSO outputs should be key measurable outcomes that directly impact the revenue or profit of the enterprise. I believe that most SSOs have difficulties in communicating their outputs in a language or format that demonstrates their value-add in dollar terms. In my opinion, there should be a change in the way KPIs are defined and measured for SSOs to reflect more revenue and/or profit targets.

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Q: How well are Middle East markets supported by knowledgeable advisors or consultants to support transition? ES: There are a very limited number of experienced and knowledgeable consultants who have a thorough understanding of global best practices as well as a thorough understanding of the Middle East dynamics and cultural sensitivities. From my interactions with various SSO professionals within the region, I have realized this gap and it is fast becoming the “need of the hour” to assist and provide government and private organizations with the right support with their transitions.

Q: How does BPO fit into Middle East Shared Services strategy? ES: BPOs would need to re-think their strategy for this region. Setting up regional hubs in countries like Oman, Iran, and Egypt can be a good starting point to be able to offer a more balanced proposal to various organizations who might be reluctant to outsource activities to the Far East. A key requirement for most Middle East businesses will always be a high level of customer engagement, which would require close proximity to their locations.

Q: How does the role of SSO leader feature in today’s Middle East organization? How is this changing? ES: The SSO leader is currently a middle management role that mainly looks after operational responsibilities and service delivery of the SSO function(s). Increasingly, more organizations are evolving with their operating models and the SSO leader is playing a more strategic role in enabling the business units to deliver their plans.