Shared Service Center – Rising cost pressure and drive for automationShared Service Center established themselves as a valuable growth opportunity for multinational companies by reducing personnel expenses as well as embracing standardization and harmonization within complex global company structures. However, the Covid-19-pandemic, rising costs due to high inflation rates and more advanced automation solutions shuffled the playing field and its environmental conditions. For instance, home office demands have become common practice for Shared Service Center (SSC) in Central and Eastern European (CEE) countries.Poland stands out as the largest player for SSC in CEE commanding a 69% market share, with high …
Will Blue Collar Labor Shortages Lead to More Automation in China?
Blue-Collar Labor Shortage and China’s Automation DriveWhy is there a blue-collar labor shortage in China? As the consequence of the one-child policy as well as rising financial pressure, China’s fertility rate has remained at a low level for years, leading to a rapidly aging population which heavily impacts the available workforce within the country. The population aged 15 to 59 only accounted for 63% of the total population in 2020 – down by around 7% points compared to a decade ago. Since 2017, the labor force has been decreasing and could further shrink by 5% in the next ten years, …