This approach is tried and tested for general transactional processes. But how do you handle processes, which require that language and cultural issues also be addressed? Asia and South America might be fine for English and Spanish, but what about German: the most widely spoken language in Europe spoken by more than 80 million people in Germany alone? What is the best way to serve b2b and b2c customers in Europe’s largest market? Is it really an option to operate from Eastern European near-shore countries with young, non-native speaking graduates in business climates with high attrition rates and annual salary inflation rates in double digits?
Germany is the optimal location for delivering both captive of outsourced services to serve Europe largest business market. The “Made in Germany” seal of quality continues to be a glob- ally recognized benchmark of excellence not only in traditional heavy industries, but also in Ger- many’s thriving service sector. Could captives or vendors suc- cessfully deliver from German production sites? Certainly if service delivery from Germany really was so fraught with difficulties, would companies like BASF, Daimler or Deutsche Bank host their shared services in Germany or vendors like Sitel, ADP or HP really run deliveries from German locations? Indeed why deliver or source from a country with a fairly poor reputation in matters of labor regulations and costs?
Germany’s advantages hold true not just for German business. BASF has established its Europe- an Shared Service Center in Germany: With approximately 1,000 employees from 45 nations, it delivers F&A and HR services for more than 180 companies in the BASF group from over 25 coun- tries in Europe. The establishment of its shared services center in Berlin was made possible thanks to specially negotiated collective agreements.
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Article by Josefine Dutschmann, Senior Manager, Germany Trade & Invest, Picture: gtai