European HR directors choose to keep shared-service centres in home countries rather than cheaper offshore locations

HR directors across Europe are keeping shared-services centres in their home country, and focusing on quality of service rather than cutting costs and cheaper offshore locations, a survey has revealed.

Three-quarters of the 141 businesses surveyed by PA Consulting located their service centres in their organisation’s home country, as opposed to low-cost regions such as Eastern Europe or India.

An increasing number of companies also indicated in the survey that they are at a critical juncture with their shared services and are exploring a hybrid mixture of in-house service centres and outsourcing.

When discussing trends for the future, 50% nominated a hybrid mix, compared with 35% mentioning in-house service centres.

Jonathan Hogg, a member of PA’s Management Group, said: “The shift in sentiment towards a desire for greater service satisfaction above cost reduction has come about through the increased sophistication of the shared-services centre offering.

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“They are now being utilised to assist in higher-skilled processes such as talent development, management accounting and the training of staff.”