Biz Solutions... August 2007
Denmark – Shared Services Centres Looking for an ideal location for your SSC activities? Looking for excellent business conditions? Looking for the right mix of cost and quality? Have a look at Denmark!
Denmark offers excellent conditions for setting up Shared Services Centres and has become a natural choice for headquarters and shared services centres in the Nordic region. The capital, Copenhagen, is emerging as a favoured location for shared services centres and is in the top 5 of regions in Europe regarding shares of SSCs. They did it...
Why Denmark?
• Bayer Nordic • Gillette
• Excellent business conditions (EIU 2005 & 2006) • Highly educated, efficient and motivated workforce (IMD 2007) • EU’s most flexible labour market (IMD 2007) • Competitive costs given the high level of quality • No 1 in the world on E-readiness (The Economist & IBM, 2006 & 2007) • Low office rent (CB Richard Ellis, 2007) • No 4 Forbes Capital Hospitality Index (2007)
• Roche • Eli Lilly • Honeywell
The benefits of Shared Services Centres
Prime Office Rents
• Improving customer service • Sharing best practices • Utilizing technology • Simplifying processes • Increasing efficiency
Office occupancy cost (in EURO) City centre total occupancy cost per m2 per year
Last but not least – lowering costs Quantitative measures
The most important quantitative measures to take into consideration in connection with the cost structure of a SSC are real estate costs and salaries. Copenhagen offers some of the most competi-tive office rental rates in Europe. Rates are very low, and the Copenhagen property market can provide a great variety of modern, centrally located premises.
London Paris Dublin Glasgow Stockholm Frankfurt Brussels Munich Amsterdam Helsinki Copenhagen Berlin 0
300
Source: CB Richard Ellis 2007
600
900
1200
1500
Denmark – Shared Services Centres
Total employment costs A cross-country comparison of employment costs (in €) Country in Europe Pay Belgium Sweden Germany UK Denmark France Netherlands
36,527 36,363 40,163 38,901 45,235 31,544 29,354
Social security
Mandatory benefits
Voluntary benefits
Total Pay & benefits
12,667 11,891 8,274 2,972 136 10,913 3,023
- 1,273 - - - 1,529 -
4,383 3,273 2,008 4,668 679 1,893 2,348
53,577 52,800 50,445 46,541 46,050 45,879 34,725
Qualitative measures
One of the most important factors when establishing a SSC is Human Resources. Denmark offers the foreign investor a well-organised labour market with good cooperation between the different parties.
Invest in Denmark's benchmarking service
Invest in Denmark offers a comprehensive benchmarking service covering a range of sector interests. Using a qualitycost matrix this tool allows objective comparison of Denmark with up to 35 different global locations. All the data programmed into the tool is kept constantly up to date and fully referenced.
on national average earnings for full-time male employees in each country and can vary according to local economic conditions. Source: Mercer HR 2005
Labour market flexibility Denmark has the highest labour market flexibility in the EU 10
The Danish workforce is among the most productive in Europe and no restrictions apply regarding overtime work, allowing companies to operate 24 hours a day, 365 days a year.
All pay figures are based
Score
8 6 4 2 0
DK
US
UK
N
NL
S
D
B
Source: IMD 2007
Besides being fast, our benchmarking service is also free. If you have reached a point in your investment planning where benchmarking Denmark could be a useful next step, please contact us for arranging an initial meeting.
Whether your company considers to relocate, consolidate, set up new production facilities, is on the lookout for new innovation partners or other strategic business solutions in Europe, Invest in Denmark is a good place to begin. We provide customised information and services free of charge and in full confidentiality.
Invest in Denmark 2, Asiatisk Plads DK-1448 Copenhagen K Tel. +45 33 92 11 16 Fax +45 33 92 07 17
The information stated in this fact sheet may contain errors or omissions. Invest in Denmark and our co-operation partners disclaim any and all liability for any loss or damage caused by such errors or omissions.
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