When it comes to optimizing support functions of large global companies, Shared Services stand out as an imperative to capitalize on size, leverage expertise, improve service quality and increase efficiency. When it comes to optimizing support functions of large global companies, Shared Services stand out as an imperative to capitalize on size, leverage expertise, improve service quality and increase efficiency.
Companies consider shared services or outsourcing to address a number of challenges, including:
Who could benefit from transforming their service delivery model?
Characteristics of an organisation that would benefit from shared services include:
Benefits of SSC
Increased efficiency
Increased effectiveness
Shared Services are organizational units handling some activities of support functions for Business Units and Corporate Headquarters with the aim to deliver the highest standards in terms of quality and efficiency, and in particular to leverage size. In large global companies, they have become well established in the organizational landscape.
The decision to transform your service delivery model should be made in the wider context of, and integrated with, your overall business strategy. In particular you need to consider your organisation’s current and desired ‘value chain’ and how supplier and customer interactions can be facilitated within a shared services or outsourcing environment.
Traditionally, the primary focus of Shared Services has been on delivering support activities in the Finance, HR, Procurement and IT functions. Within these functions, only activities that have a huge potential for efficiency improvements are transferred to Shared Services centers. Typically, shared activities across the organization are transactional, high volume and highly standardized (example: procure-to-pay and record-to report processes). The rest are retained activities, which are maintained in local business units, either because they require more business proximity or non-replicable specific expertise.
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