What We Learned From the SSOW Opening Remarks

This fall’s SSOW is in full swing, and the event kicked off Wednesday with opening remarks from Brad Dement, Partner at Scott Madden. During his opening comments, Brad mentions four key trends Scott Madden has noticed in the shared services space based on research done with clients. The following are those four trends.

Hedging the Economy

The global economy is facing a number of challenges in 2023, including rising inflation, supply chain disruptions, and the war in Ukraine. These challenges are making it difficult for businesses to manage their cash flow and make investment decisions.

In 2024, businesses should take proactive steps to hedge against these economic risks. This could include adjusting their accounts payable and accounts receivable terms, increasing their focus on credit analytics, and reviewing their projects to ensure that they are aligned with their strategic goals.

Rebooting the Workforce

The talent shortage began with the COVID-19 pandemic and has continued in 2023. This is especially true for digital skills, which are in high demand and is expected to grow as technology advances and skills become outdated.

Moving forward, shared services and GBS will need to find creative ways to recruit and retain top talent. This could include recruiting remote positions regionally or globally, doing pilot programs with new technologies, and setting up virtual Centers of Excellence.  

Managing Geopolitical Risks

The war in Ukraine has highlighted the importance of managing geopolitical risks. Businesses that operate in or have supply chains in the region have been particularly affected. The rise of cyberattacks is also a large concern for businesses, as was seen just this week when operations for MGM Hotels were slowed by a cyberattack.

Next year, shared services and GBS must diversify their hubs and develop business cases for nearshore options. They will also need to have a plan for protecting their data from cyberattacks. 

Gaining AI Traction

Artificial intelligence (AI) is rapidly changing the way businesses operate. However, many businesses are still hesitant to adopt AI due to concerns about the cost, complexity, and security of these technologies.

In 2024, shared services and GBS must consider taking steps to gain traction with AI. This could include identifying a few pilot areas where AI can be used to achieve a specific business goal, limiting the use of generative AI to their own data, and setting up an AI Center of Excellence.

Stay tuned for more insights from SSOW!