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This is what the Hungarian SSC leaders fear the most

Domestic Service Centers (SSCs) are increasingly moving from global, repetitive activities to global business service providers, according to PwC research. About a quarter of the respondents did not cause a significant, strategic change in the virus situation, and 8% even plan to expand their responsibilities. The main challenges for Hungarian SSC managers are most related to the workforce, as half of the respondents are afraid of the precarious labor market situation.

For the fourth time, PwC conducted a global survey of service centers, in which the Hungarian The operation of these organizations was also analyzed by the experts of the consulting company. Hungary is a popular location for SSCs: in 2020, the sector employed approximately 64,000 people in 131 companies, significantly increasing the number of employees compared to 2016. Pandemic, digitalisation and HR were key players in the sector survey in 2020.

Longer recruitment, higher turnover

According to the survey The biggest challenge for service centers is related to the workforce: half of the leaders of Hungarian SSCs fear the precarious labor market situation and high fluctuations, and 42% fear the growing expectations of employees.

Recruitment of career starters 7 It takes -8 weeks in Hungary, but at the management level it takes longer than 4 months to select the right colleagues. The Hungarian results showed interesting dynamics in relation to fluctuations: a quarter of the surveyed companies experienced more than 20% emigration per year, which means an increase compared to the Hungarian results of four years ago and this year’s global results.

“Nearly half of the companies surveyed have seen significant changes in workers’ expectations and job preferences. Basic wages and flexibility remain important factors in choosing a job, but new factors have also been added to the list – such as security, possibly due to a pandemic. competition for talent encourages Hungarian SSCs to position themselves as attractive employers in the market, “said Péter Selmeci, Director of Strategic and Operational Advisory Services at PwC Hungary.

If we look at incentives to retain, Compared to the participants in the international survey, the Hungarian responding companies offer a higher proportion of people yes development and training programs for employees. However, it is rare in Hungary to develop individual career paths, which are used as an incentive by almost half of the responding companies worldwide.
Automation and digitalisation

to solve. A PwC expert added:

“According to our survey, SSCs are increasingly focused on standardizing and digitizing processes. These alone cannot solve labor market challenges, but can reduce the need for human resources and help with more exciting tasks.

Although digitalisation, standardization and automation have all become significant strategic goals among Hungarian respondents, there is still a long way to go to reach the global average. A good first step in improving efficiency can be the emergence of Employee Task Management (ETM) tools. ETM devices are based on digital footprint tracking, recording and analysis of usage data for each application. User activities can be automatically linked to the appropriate task, workflow, or project, so user data can be mapped and analyzed with a single click.

In addition to the ETM, there are a number of tools to improve the efficiency of SSCs.

According to Péter Selmeci, the use of RPA (robotic process automation) is almost mandatory for efficient operation. In addition to simpler technologies, SSCs are also beginning to find more complex solutions: process mining and automation, chat bots, voice recognition or artificial intelligence – all of which are forward-looking solutions that will sooner or later reach the Hungarian market. Moreover, in addition to increasing efficiency, these tools focus employee energies on higher value-added tasks, thus helping to increase the employee experience.

After Covid, even more activities can be transferred to service centers

Digitization efforts have been intensified by the epidemic with the rise of the home office. The impact of the pandemic was closely linked to the service center industry, showing significant differences: about a quarter of respondents did not see a significant change in the virus situation and 8% even planned to expand their responsibilities in line with their commitment to global services

.

“The epidemic situation has shown that teleworking does not necessarily hinder or slow down operations, so it is likely that companies will relocate more activities to their existing centers in the near future. on the other hand, the need to reduce costs in the industries severely affected by the pandemic can be another motivating factor for outsourcing tasks, “added Péter Selmeci.

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Sandra Loyd
Sandra is the Reporter working for World Weekly News. She loves to learn about the latest news from all around the world and share it with our readers.

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