Ireland’s Shared Services sector has potential to continue to attract further significant global investment into the future

This Accenture research, in association with the IDA and UCD Michael Smurfit Graduate Business school, indicates that Ireland must focus its efforts on attracting investment around high value shared services work. We need to build on our success to date by leveraging the experiences and expertise of our Shared Services ‘masters’, something which this report finds is already taking place.

Mark Ryan, Country Managing Director for Accenture Ireland

Report PDF  - Sustaining high performance in Shared Services. An Irish Perspective

First ever dedicated research report into Irish-based Shared Service Centres launched today by IDA, Accenture and UCD Smurfit School

21st September, Dublin – The first ever dedicated research report into Irish-based Shared Services Centres (SSC) has been launched today at IDA headquarters. Sustaining high performance in shared services: An Irish perspective was authored by Accenture Ireland, in partnership with the IDA and UCD Michael Smurfit Graduate Business School. The IDA believes that Ireland’s Shared Services sector, which currently employs 35,000 people, has the potential to build on its successful track record in the sector to win significant further investment from leading global companies into the future.

The in-depth research, carried out amongst the 100-plus shared services centres operating in Ireland, reveals that Ireland has a far greater proportion of high-end SSCs, with 25 per cent considered ‘Master’ operators compared with a global average of just eight per cent.  Nearly half of those surveyed said the numbers employed in shared services in Ireland will increase in the next year.

Launching the report, the Minister for Enterprise, Trade and Innovation, Batt O'Keeffe TD, said: 'It is clear from this research that Ireland remains a global leader in shared services, with a significantly greater number of centres operating at the high end of the value chain compared with our international counterparts. 'Global firms are continuing to invest in Ireland, attracted here by the availability of a highly educated and flexible workforce, competitive corporation tax rate and established global recognition as centre of excellence for shared services. 'The Government's foreign direct investment strategy is working and, with sustained investment in our enterprise agencies, we must continue to attract new foreign-owned firms in high-growth markets, retain the ones we have and create new high-quality jobs as our economy recovers.”

The level of new SSC investment has slowed in recent years due to more basic processing activities being carried out in lower cost environments. However, the report states that this is inevitable and the challenges resulting from these global economic factors can be overcome by a concerted and coordinated effort on the part of Ireland to promote and attract ‘value –add’ shared services investment with a view to creating thousands of highly skilled employment opportunities nationally.

Barry O’Leary, CEO IDA Ireland, commented: “Ireland has a particularly strong track record in the Shared Services Sector, having built a significant cluster of leading-edge multinational shared services operations here.  From the mid ‘90’s onward, Ireland has adopted a leadership role, transitioning from the initial Shared Services Centres to the increasingly sophisticated activities now being undertaken here. Today, we are a global location of choice for Shared Services.  The continuing growth and future potential of this sector is clearly highlighted in the recent decisions by multinationals such as Merck, Eli Lilly and Telefonica O2 to locate world-class operations in Ireland. Testimonials from such leading global brands position us extremely well internationally to continue to secure enhanced investment and job creation into the future from this dynamic sector.”

Country Managing Director for Accenture Ireland, Mark Ryan, said: “This Accenture research, in association with the IDA and UCD Michael Smurfit Graduate Business school, indicates that Ireland must immediately focus its efforts on attracting investment around high value shared services work. We need to build on our success to date by leveraging the experiences and expertise of our Shared Services ‘masters’, something which this report finds is already taking place. Our global research has also shown us that organisations which demonstrate added value in shared services can sustain and strengthen their market position for the economic upturn. Crucial to Ireland’s potential growth in this area will be access to a highly skilled and educated talent pool, particularly in fields such as finance and accounting, and languages. On this basis we must encourage our student population to look to a career in the shared services industry, which, in the past, may not have been viewed as a viable or attractive choice.” 

Professor Tom Begley, Dean UCD Smurfit School, said: “While the report highlights the challenging landscape in Ireland for SSCs , we draw encouragement from  the renewed focus on quality of service by firms located here and the continued growth of SSCs globally. A key to our future competitiveness is stakeholder cooperation and suitable public policy to ensure the continued success of this vital sector of the Irish economy. We are proud of the involvement of a team of UCD Smurfit School CEMS students in compiling this report. Their contribution is testimony of the quality and calibre of this unique programme which is ranked as the No 1 Master in Management in the world by the Financial Times.”

The report also found that Irish SSC's appear to be positioning themselves to adapt for future challenges with 52% of Irish respondents indicating a desire to expand the scope of services offered and almost two-thirds planning to enhance automation tools and expand the use of technology which are seen as initiatives that can narrow the gap between Ireland and other low cost locations. What’s more, Irish SSC management have reported satisfaction well above their global peers with fewer barriers to success.

For further information contact:

Gillian Lawless, IDA Ireland
Ph. + 353 1 6034220

About the report

Accenture conducted a survey of executives with responsibility for managing shared service organisations in Ireland for their companies in conjunction with the CEMS Master in International Management programme at UCD Michael Smurfit Graduate Business School. These executives, who included directors, vice presidents and senior management, came from organisations representing more than 13 industries and a combination of both new entrants to the shared services market and mature incumbents. The survey was conducted between February and April 2010, and achieved a response rate of approximately 40 percent. The survey contained 31 questions, focusing on the past, present and future situation of shared service organisations within Ireland. We compiled and analysed results to identify companies displaying the characteristics of shared services mastery, as defined in Accenture’s 2009 global research report, Achieving high performance through shared services: Lessons from the masters. We also compared results from the Irish survey to outputs from the Lessons from the masters research to draw insights and conclusions on the current state of shared services in Ireland and the key areas of focus for the next three years.

About Accenture

Accenture is a global management consulting, technology services and outsourcing company, with more than 200,000 people serving clients in more than 120 countries. Accenture Ireland employs approximately 1200 people across its Dublin and Belfast offices. Combining unparalleled experience, comprehensive capabilities across all industries and business functions, and extensive research on the world’s most successful companies, Accenture collaborates with clients to help them become high-performance businesses and governments.  The company generated net revenues of US$21.58 billion for the fiscal year ended Aug. 31, 2009.  Its home page is www.accenture.com.

About UCD Smurfit School’s CEMS Master in International Management (CEMS MiM) Programme

CEMS is a global strategic alliance of leading business schools and multinational companies. UCD Smurfit School is the only Irish academic partner in this prestigious alliance. Ranked number one in the world by the Financial Times in 2009 and number two in 2010, the CEMS MIM is the ultimate academic-corporate programme.