Creating Value in Shared Services
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Shared services are everywhere. It is mostly the personnel costs that drive companies to seek synergies and set up shared services, but there are other benefits that truly make the difference. Shared services can be successfully managed with a few indicators and clear lines of responsibility. Setting the right goal can create significant value for your company.
Shared Services Centers (SSCs) have become indispensable for the functional departments of large and medium-sized companies. They bundle standardized processes and provide services at significantly lower costs than a decentralized approach that replicates resources at each of the company’s locations. The initial labor cost arbitrage explains the global success of SSCs. The focus on performing standardized activities at low personnel costs remains a major factor in establishing an SSC. Business process outsourcing, offshoring, and global business services can further intensify efforts in this direction. The result is an...