The Evolution of Hitachi China's HRSSC: A Model for HR Operations Transformation

Hitachi China has partnered with CDP to establish a Human Resources Shared Service Centre (HRSSC), with the core objective of resolving the fragmented nature of payroll, attendance and social security processes across its numerous subsidiaries. Prior to the collaboration, there were significant discrepancies in the rules across companies, with a heavy reliance on manual processes. Not only did this result in payroll cycles lasting one to two weeks, but responses to routine employee requests—such as accessing payslips or obtaining certificates—were also slow. Consequently, HR teams were bogged down in administrative tasks, making it difficult for them to create higher value.

Through this project, Hitachi China has successfully transitioned from a controller to an enabler: by utilizing a unified platform to accommodate the differing rules of each subsidiary, whilst retaining necessary flexibility within a standardized framework, the company has resolved the long-standing tension between centralization and decentralization. For enterprises operating in a multi-entity, multi-business-model environment, this initiative has not only addressed superficial issues of efficiency and cost, but has also achieved a strategic restructuring of the HR operational model.

Hitachi China

Industry
Manufacturing Automobile & Parts Energy/Chemicals High-Tech/Internet
Core services
HR Shared Service Center (SSC)

As the central command for Hitachi's operations in China, Hitachi China is responsible for shared services and management functions. However, with subsidiaries spanning multiple sectors—including manufacturing, high-tech, and medical and chemical industries—each company had distinct payroll rules, attendance systems, and social security processes. These varied systems were like a pile of jigsaw puzzle pieces of different shapes that simply wouldn’t fit together.

The turning point came in 2015. Hitachi China decided to partner with CDP to jointly establish a Shared Service Center, offering a three-in-one integrated solution—comprising systems, BPO, and social insurance—to subsidiaries willing to join. To date, more than 20 group companies have joined, serving over 2,000 employees.

When HR Was Trapped by Manual Work and Silos

Before the partnership, many subsidiaries lacked unified systems and even relied entirely on manual operations. Hitachi China wanted to help its subsidiaries reduce their workload but struggled to find a unified approach. This fragmented approach was not only inefficient but also undermined the employee experience. Employees had to search through HR's emails for hours to find pay stubs, and obtaining certificates required filling out forms and waiting for approvals. HR professionals themselves were overwhelmed—their time was consumed by administrative tasks, leaving them unable to provide valuable employee services.

Building a Shared Platform, Not Just Buying Software

CDP did not rush to recommend a one-size-fits-all system. Together, they identified the root of the problem: Hitachi China did not need to automate the processes of a single subsidiary, but rather to build a shared, standardized, and sufficiently flexible service platform for all subsidiaries willing to join.

The solution gradually took shape. Hitachi China assumed the role of the central hub, while CDP provided the platform and operational capabilities. We accomplished three key tasks:

  • Consolidated scattered compensation rules onto a unified platform: Instead of imposing a one-size-fits-all solution, CDP used configurable modules to incorporate each company's unique rules into a single system. HR staff continued to enter data using their familiar methods, while the backend automatically handled compliance checks, individual income tax calculations, and bank disbursements.
  • 让考勤与薪酬真正联动。CDP将考勤方案与薪酬引擎直接集成,员工通过手机端打卡、请假,数据实时进入薪酬计算池。一位工厂HR说:”以前发薪前要花三天对考勤,现在十分钟搞定。
  • Covering the entire country with an in-house social security team, eliminating layers of subcontracting: Social security involves multiple cities nationwide, with complex and frequently changing policies. Many outsourcing firms subcontract further, but CDP maintains its own in-house team to ensure timely policy updates and provide legal support.

Years Later: Comprehensive Improvements in Efficiency, Cost, and Experience

After sustained operation, the results have been highly robust:

  • Efficiency has significantly improved: The monthly payroll cycle, which used to take one to two weeks, has now been compressed to two or three days. End-to-end automation has virtually eliminated human error.
  • Costs have been markedly reduced: Companies no longer need to purchase separate systems or hire individual outsourcing providers. A unified platform, unified BPO, and unified social security channel have led to a significant decrease in overall operational costs. The HR team has transitioned from being spreadsheet-makers to data managers, enabling them to focus on talent analytics and employee well-being.
  • Employee experience has significantly improved: Employees can use mobile apps to self-service access electronic pay stubs and request certificates, with a call center available to address any issues.

Industry Insights: A Model for HR Operational Transformation

日立中国的实践表明,跨国企业在华构建人力资源共享服务中心,其本质并非一套系统的引入,而是一场运营模式的重构。它要求总部从”管控者”转向”赋能者”,以标准化平台为底座,允许业务单元在统一框架下保留必要弹性,从而化解集权与分权的长期矛盾。

这一路径的成功,依赖于两个战略选择:一是将复杂事务,如薪酬计算、社保管理等交由具备交付能力的专业伙伴长期运营,而非碎片化外包;二是以”自愿加入、效果驱动”的方式逐步扩展,避免激进变革带来的组织阻力。更重要的是,HRSSC的价值不应仅停留在降本增效的战术层面,它真正释放了HR组织的时间与注意力,使其能够向上支撑人才战略、组织效能等核心命题。对于任何处于多法人、多业态环境下的企业而言,这都是一条值得借鉴的转型逻辑。

Resources

The Digital Transformation of Benefits Management: A Case Study from a Manufacturing Company

Reshaping Retail Management with Digitalization to Empower Rapid Business Expansion and Refined Operations

CDP Partners with Leading Domestic Pharmaceutical R&D Company: Building People-Oriented Future Competitiveness Through HCM Digital Transformation

The Evolution of Hitachi China's HRSSC: A Model for HR Operations Transformation