azuddin jud ismail - melaka sso to kkpo
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MELAKA ICT HOLDINGSKNOWLEDGE DRIVEN SERVICES
SHARED SERVICES &
OUTSOURCING (SSO)Azuddin Jud Ismail
Clarification on SSO Activities
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Definition of High ValueActivities for SSO
TechnologyInfrastruct
ure
Telecoms
DeviceManagement
Hosting
CustomerSupport
BusinessApplicatio
ns
Vertical
Applications
HorizontalApplications
BusinessProcess
CRM, Billing
Admin,Finance
HR, Training
Supply Chain(Manufacturin
g Services)
Logistics
BusinessManagement &
Integration
Business,Finance and
ProjectManagement
Sourcing andProcurement
Process Designand Engineering
Marketing, Sales
BusinessTransformatio
n
Global BusinessIntegration
Research,Product Design
andDevelopment
InvestorRelations andManagement
Market Strategy
Analytics
IndustryVerticals (BFSI,High Value
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What is SSO?Shared Services are the convergence and streamlining ofand organization's functions to ensure that they deliver theorganization the services required of them as effectively andefficiently as possible.
This often involves the centralizing of back office functionssuch as HR and Finance but can also be applied to the middle
or front offices. A key advantages of this convergence is that itenables the appreciation of economies of scale within thefunction and can enable multi function working (e.g. linking HRand Finance together, where there is the potential to createsynergies)
A large scale cultural and process transformation is often akey component of a move to Shared Services. Thistransformation often results in better quality of work life foremployees.
Shared Services are more than just centralization orconsolidation of similar activities in one location. Shared
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What is SSO?
The term SSO encompasses both outsourcing andoff shoring activities. Shared Services is andarrangement where common services are providedby a single organization levering an economies, such
as outsourcing and call-center consolidation.
Outsourcing is to seek resources outside of anorganizational structure, usually to reduce costs andto exploit competencies of other entities.
Off shoring is the provision of services from a countrythat is geographically removed from the client, forexample, services provided to a US enterprise by aservice provider located in a developing country.[Excerpt from : Economic Report 2005/2006, by
Ministry of Finance Malaysia, p.34]
cont.
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Types Of SSO Activities
Information Technology Outsourcing(ITO)
Business Process Outsourcing (BPO) Knowledge Process Outsourcing (KPO)NB
iii.List of SSO activities presented are nonexhaustive;iv.Companies may be involve in multiple activitiesacross above segmentationv.Horizontal refer to the span of SSO activitiesacross industries and Vertical refers to the specific
industries (i.e. Finance, Logistics, Energy,Technolo Manufacturin etc.
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Example of ITO relatedSSO Companies
Information Technology Outsourcing(ITO) :
iii.ExxonMobil Business Support Center MalaysiaSdn. Bhd.
v.Shell Information Technology International Sdn.Bhd.
vii.Asia-Pacific Information Services (DHL) Sdn.Bhd.
ix.Ericsson Expertise Center Sdn. Bhd.
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Example of BPO relatedSSO Companies
Business Process Outsourcing (BPO) :
iii.E2 Power Sdn. Bhd
v.DHL Asia Pasific Finance Shared Services Sdn.Bhd.
vii.HSBC Electronic Data Processing (Malaysia)
Sdn. Bhd.
ix.IBM Malaysia (M) Sdn. Bhd.
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Example of KPO related SSOCompanies
Knowledge Process Outsourcing(KPO) :
iii.Shell Global Solutions
v.HSBC Global Resourcing Ltd
vii.Pulse MSC
ix.PGS
xi.Panasonic R&D Center
xiii.Nokia Siemen
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Information TechnologyOutsourcing (ITO)
IT Service & Support SSOactivities that relates to the in-
sourcing or outsourcing ofactivities relating to IT services& support
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Example
of ITOActivities
Data CenterIT Helpdesk
Tech Support
DisasterRecovery Data
Center - LHDN
Hosting
SoftwareDevelopment
Applications
Development
System
Integration
Vertical (IndustrySpecific) Applications
DeviceManagement
Horizontal (ProcessSpecific)
Applications
EntireTec
DIGITAL
Melaka
SAMB
K-Eco
M-BPO
KTIAM
MICTHCallCente
r
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Business ProcessOutsourcing (BPO)
Back-office Processing SSO activitiesthat relates to the in-sourcing oroutsourcing of activities relating back-office processing which typically requires
plenty of manual data entry efforts.
In the Finance vertical for example, thisbusiness process includes simple tasks
like credit card or be expanded to includebilling, call center services, transactionmanagement, correspondencemanagement, revenue management,collections and exception processingoperations.
cont
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Business Process Outsourcing(BPO)
In Human Resource (HR) vertical the BPOactivities which are in-sourced oroutsourced may include processos such as
payroll processing, administration ofemployees benefits andentitlements,employee data records andmanagement.The SSO activites under theHR may also cover
performance,reward,training and exitprocess.
Customer Services and Call Centers
cont.
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Knowledge ProcessOutsourcing (KPO) Knowledge
ServiceKPO or Knowledge Services are basically thehigher value activities that can be consolidatedwithin a company. These may include coreand/or non-core activities within the company.
The most common form of KPO being done isResearch and Development work. Companiesin each industry vertical may have varyingcore and non-core activities.
For Example, R&D work for an IT company willbe different from R&D work being done in acompany within the Pharmaceutical industry.Additionally, certain activities may only bespecific to a particular industry.
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Exampleof KPO
Activities
GlobalBusiness
Integration
EquityResearch
Sourcing andProcurement
Market Researchand Intellectual
Property
FinancialModeling and
Analysis
LegalResearch
Investor
Relations &Management
ProjectManagement
Customer andPortfolio Analysis
Research, Design& Development
Process Design& Engineering
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Potential KPO Area forMELAKA MSC Malaysia
BFSI Strong track record for Islamic Finance
and access to BFSI players and customers.Excellent G2G relations to promote products andservices to potential clients
Manufacturing natural progression to useMalaysias strength in traditional manufacturingactivities to develop system, processes andservices to support global manufacturing needs
Legal Strong legal foundations i.e. Englishlaws, Cyber laws and Islamic laws to fuel KPOrelated research and analysisMedical & Pharmaceutical Access to ready
local talents (doctors, nurses) and life sciencesresearches, alternative medicines etc