Service industry sectors in the US and Europe are turning to shared financial, accounting and IT services to remain profitable in the face of increasing market demands, and South African companies would be advised to do the same.
This is the view of Copenhagen-based Jan Holm Moller, business development VP at Maconomy, a Danish enterprise resource planning and financial solution company.
Moller, who has over 20 years` experience in international advertising, told industry representatives in Bryanston last week that very soon their profitability could be determined by whether business processes were being operated efficiently.
Although focusing on the advertising industry, Moller said the challenges were common to all business sectors with growing demands for financial and other regulatory compliance, increasing globalisation through merger and acquisition, and growing customer expectations of more for less.
"In the face of market demands, resistance to shared services is breaking down, driving the demand for software solutions that can ensure compliance as well as keep track of and manage resources to derive maximum profit."
According to Moller, major advertising houses such as Publicis are following manufacturing and other industries in turning to local and regional shared services centres to cut costs, manage workflows, and prepare for easier worldwide business integration.
"It is only a matter of time before South African companies will be facing similar challenges to those being encountered elsewhere in the world, and they are best advised to start preparing now," said Moller.
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