Shared service centres: delivering the promise  

12 September 2007:

Key Findings

A transitional phase – creating opportunities

The research shows that setting up an SSC is in many respects more challenging today than in the past. For companies operating in a relatively stable, low-interest rate environment, efficiency is a long-term objective rather than an immediate necessity for survival. This is being balanced against the parallel need to improve quality. Since the last survey in 2001 many respondents may have implemented significant cost-cutting and process improvement initiatives, thereby reducing the scope for further incremental cost reduction. This will have affected the cost expectations and targets set for SSCs.

Significantly, as the scope and sophistication of SSCs continues to increase there is an emerging trend towards the adoption of ‘hybrid’ models, combining an in-house SSC with outsourced and/or even offshored elements. This development revitalises the opportunities for companies to realise further cost and service benefits in the future. However, managing this more complex hybrid entity demands greater focus and effort from CFOs, HR directors and SSC directors.

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Source: PA Consulting

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