Deloitte Shared Services Conference 2018 Focus 1: Location selection: Placing and keeping your people in the digital age David Henderson, Hargreaves

Transcription

1 Deloitte Shared Services Conference 2018 Focus 1: David Henderson, Hargreaves Lansdown, Pamela van Kruijsdijk and Elias van Herwaarden, Deloitte

2 Introductions, agenda and house rules David Henderson Head of Business Transformation Hargreaves Lansdown Pamela van Kruijsdijk Global Location Strategies Deloitte Key topics Where s hot and where s not? The end of location? Considerations and criteria Hargreaves Lansdown s journey and choices Elias van Herwaarden Global Location Strategies Deloitte Rules Challenge and ask - this is your session! Chatham house

3 Go-around Topics you are interested to address

4 Where s hot & where s not? Post-2015, global SSC/GBS job creation declines. Poland and Costa Rica are clear hotspots Regions vs (k jobs) Countries Cities ME NAM WE LATAM APAC CEE RO 4% CN 9% US 5% LT 8% HU 8% CR 13% MY 2% Warsaw PL 20% Vilnius Krakow Kaunas Lodz Bratislava Miskolc Dublin Manila Mumbai Rzeszow Budapest San Jose IN 18% Gdansk Sofia Wroclaw PH 13%

5 The end of location? Viewpoints are rife Outsourcing is dying Lack of experienced / leadership talent necks it We must stop outsourcing our jobs overseas Change in the sector essential for survival Dramatic increase in multi-functional centres Hire to decline Job creation CAGR%: 19% We'll end outsourcing 'racket' in rule change Picture courtesies: Vanity Fair,

6 Considerations and criteria Talent crunch, millennials and AI to disrupt classic models. Size will matter for now Considerations Global is here IT is needed everywhere Increased awareness about the sector Unescapable war for talent Distributed / layered structures are favoured New partnerships / solutions Criteria STEM talent Empathic / assertive communication skills Accessibility Scalability B2U cooperation possibilities NextGen workspace Talent attraction / retention

7 What s next? PA 50/50 V/GBS Next SJO? +3.7k EG +110k 70/30 T/V BLR+OPT? ~1.1k UA +50k 40/60 T/V ~0.5k LK +75k 80/20 Non-V ~0.5k

8 Hargreaves Lansdown s journey and choices

9 Location selection is all about elimination From a world of choices to a zip code 1 Decide what s important for you Study your options from all angles Go, look see the preferred options Rip your benefits to the maximum Eliminate all unfit locations Retain a few of the best options Select prime and back up options Negotiate the best conditions

10 Our initial considerations The 10 most attractive countries for outsourcing Global services location index ranks the offshoring landscape across three categories, giving a total score out of ten. Financial attractiveness - ranked out of four People skills and availability - ranked out of three Business environment - ranked out of three Source: A.T. Kearney Raconteur: Future of Outsourcing

11 And then? Serious reflection started Workshop Deloitte Location Strategy team to ascertain: Which country? Answer = Poland. Criteria assessed: Available talent pipeline Staff and other costs IT/digital and other capabilities Experience of other international business who have already relocated Real estate options Employee value proposition Local government incentive schemes Taxation and legal set up approach and costs

12 Next Thorough analysis led us from countries to cities to selected ZIP codes and sites

13 Implementation With Samsung, Google and Comarch vying for the same talent we set-out to win

14 Our offer (1)

15 Our offer (2)

16 Our offer (3)

17 It s all about developing our network

18 What we ve learned

19 What we ve executed on and stand for Without Trust, Communication and Honesty in any relationship There is nothing to build upon

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