SSC, BSC, BSS companies, what are they?

Discover how SSC, BSC, and BSS centers are reshaping the modern world of work and why these dynamic industries can be a springboard for your career!

SSC

Shared Services Centre (SSC) is a type of outsourcing whereby a company outsources tasks not directly related to its business (such as finance, HR, IT services, customer service) to a specialised service provider.

SSCs are designed to centralise and standardise these administrative and support functions so that the company can operate in a cohesive structure and in a more cost-effective way. The model, which has been in use since the 1980s, has many benefits: it helps reduce the costs of decentralisation, improves the quality and professionalism of business support processes, increases strategic flexibility and can deliver cost savings of up to 50-70%.

The evolution of the SSC and global trends

The initial aim of SSCs was to reduce the costs of the company and improve the quality of processes. However, the SSC sector has evolved over the last decades, with improving customer service, decision support, innovation and competitiveness now playing a key role. The spread of robotisation, artificial intelligence and cloud-based services has further expanded the opportunities for SSCs.

Although SSC models spread early in Western Europe and North America, they have become very popular in Central and Eastern Europe, especially in Hungary, in recent decades. Hungary offers a favourable economic environment for SSCs, an excellent education system and a multilingual workforce, which contributes to the dynamic growth of the industry and the diversification of the Hungarian economy.

SSCs in the labour market

SSCs provide ever-growing career opportunities in finance, HR, IT and customer service. They not only give employees the opportunity to deepen their professional skills, but also to gain insights into global business operations. SSCs also place great emphasis on training and continuous development of their employees. Employees can participate in programmes and training.

Hungary has become a major SSC centre in Central and Eastern Europe, with more than a hundred service centres employing around 40,000 people. The role of SSCs in the domestic economy is becoming increasingly strategic. Industries are increasingly focusing on the use of robotics and automation, which is expected to further strengthen the competitiveness of the Hungarian SSC market.

BSC:

Business Service Centres (BSCs) are departments that play a key role in the efficiency of companies' operations and the quality of their customer service. Business services cover a broad spectrum, such as customer relationship support, business process optimisation and back-office functions essential to ensure the business operation.

These positions typically require a high level of language skills, but no specific IT knowledge or degree is required. Business services are generally based on the "value stream" principle, where processes start with the customer's needs and return to the same point. BSCs help companies to improve the efficiency of their operations while strengthening the relationship between the company and its customers.

BSS 

The BSS (Business Services Sector) includes business support functions such as finance, marketing, sales, HR, procurement and IT. These functions are organised in a central service centre, usually run by a parent company. The centre provides support not only to the parent company but also to its subsidiaries.

However, there are also centres that provide services not only to parent companies, but also to other companies. BSS is active in a wide range of areas and offers services in five main sectors: facilities management, construction services, business process outsourcing, IT and digital services, and public services.

BSS is one of the fastest growing industries in the global economy. Hungary is at the forefront of this sector and is a prominent location for the creation of service centres. The biggest competitors in the region are the Czech Republic, Romania and Poland. In Poland, the sector is growing at such a rate that they already need 3.5 million square metres of office space. BSS companies accounted for 60% of demand in the office market, excluding the capital Warsaw, with more than 160 000 sqm of office space.

In the first half of 2021, a total of more than 514,000 sq m of leases were signed in Poland, half of which were in regional markets. Most tenants came from the BSS sector. Despite the pandemic, BSS seems to be growing steadily and the industry is expected to expand in the long term.

Hungary currently has more than 150 regional and global business service centres, employing more than 70 000 people. There are three main types of centres: one type serves only the parent company, another provides services only to external clients, while the third type, a hybrid model, provides services to both parties. In Hungary, hybrid centres are the most common.

Sources:

https://jobcapital.hu/szolgaltatasok/ssc/

https://messzirejuthat.hu/ssc-jelentese/

https://www.jobsgarden.hu/palyakezdok-alma-lehetne-azok-megsem-ismerik-az-ssc-ket/

https://www.frissdiplomas.hu/hirek/872-SSC-s-definiciok

https://bscdebrecen.com/hu/ufaqs/mi-a-bsc-szektor/

https://www.randstad.hu/allaskeresoknek/karrier-tippek/karrier/a-business-service-szektor-foglalkoztatasi-trendjei/

https://www.hrportal.hu/jelentese/ssc-20220209.html

https://fmbusiness.hu/hu/oldal/foszerepben-a-bss-a-lengyel-irodapiacon-is