Ten Potential Opportunities In A Time Of Crisis for Shared Services

1 December 2008:

But at the same time in this case the hoary cliché about clouds and silver linings is true: the financial turmoil has thrown up opportunities for shared services organizations which, if seized, could greatly strengthen their value-propositions both during and after the recovery period. Not every SSO will be able to take advantage of all these opportunities - and not even the most committed optimist would maintain that there won’t be casualties among SSOs in the near future - but making the most of even one of the following ten upsides to the current downturn could be the difference between sinking and swimming.

1. Expanding talent pool

Lay-offs - both in SSOs themselves and in businesses generally - have already begun and are inevitably going to soar as time goes by. This has a host of negative consequences - but for those SSOs in a position to take on extra staff (especially at a senior level) this is an incredible opportunity to secure an advance in the war for talent. Qualified, experienced shared services practitioners - and other high-talent professionals with relevant transferable skills - will be pouring onto the market looking for work: this is your chance to pick them up before the competition does.

2. Lower salary expectations

Similarly - and as a direct result of the aforementioned glut of talent - the excess of supply in a low-demand space will have a pronounced impact on compensation levels. Even top talent will be wary about being overly demanding in wage negotiations when they know there’s a long line of other people waiting to take any position they can get. This might not seem like a positive for those out of work - but for SSOs looking to keep down costs it’s a cast-iron boon.

3. Declining land/construction/material values

This crisis began in the real estate sector and the impact there has already been dramatic - but it’s good news for any SSO (or any company looking to launch shared services) seeking a greenfield site for a new center. Once-prohibitive real estate and construction costs are dropping day by day (and will do as the construction sector continues to cannibalize in panic). Many, if not most, organizations will be putting big projects like this on hold; those that don’t will find the conditions for cost-effecive construction will be as attractive as they’ve been in a long, long time.

4. Better deals from vendors/suppliers

It’s certainly not just shared services that’ll feel the pinch; everyone bar the very luckiest is going to have to tighten their belts and up their game. For providers in increasingly crowded markets like IT, and suppliers in pretty much every sector, this will mean increasing competitiveness any way they can - and where better to start than at the bottom line, making prices and fees more attractive to the cash-strapped buy-side.