I’ve been told that Shared Service Centres are a good investment, but what actually are they?
A Shared Service Centre is a central hub of an organisation, typically responsible for handling specific operational tasks within accounting, human resources, I.T, legal and compliance, payroll, and procurement.
Shared Service Centres have been around since the mid 1980’s, and more frequently than ever, larger corporates are moving towards SSC’s and business process outsourcing.
So why do organisations set up Shared Service Centres?
Companies use Shared Services so they can utilise people, processes and technologies. Organisations will open up SSC’s to concentrate their administrative duties into a centralised function, this is in order to reduce costs, avoid duplication of effort and to allow for greater focus on business strategy.
In a nutshell, an organisation will set up a centrally located support centre to act as the main point of contact for all administration and queries.
The key objectives for most SSC’s are:
– Reducing costs
– Economies of scale
– Improved control
– Performance / productivity measurement
– Customer satisfaction