An enhanced perspective on why shared services cannot be one-size-fits-all

Shared Services has matured significantly over the last two decades. What started as a cost-arbitrage play has evolved into a strategic operating model that supports scalability, governance, and enterprise-wide consistency. Yet one reality remains constant: shared services succeeds or fails based on how well it adapts to country-specific realities.

A model that works in India may struggle in Germany. A structure optimized for Poland may not translate well to Brazil or the US. Country-specific shared services is not about fragmentation. It is about intelligent design that respects local constraints while still delivering global outcomes.

Why country context matters in shared services

Every country brings its own operating environment. Ignoring this context often leads to higher attrition, compliance risks, service disruptions, and stakeholder resistance.

Key country-level factors that shape shared services include:

• Labor laws and employment regulations
• Language and cultural norms
• Cost structures and talent availability
• Taxation and statutory reporting requirements
• Data privacy and security regulations
• Maturity of digital and process infrastructure

Successful organizations design shared services with these variables in mind rather than forcing a global template everywhere.

Common country-specific shared services models

1. India-led shared services

India remains the most mature destination for shared services, especially for Finance, HR, Payroll, IT support, analytics, and back-office operations.

Why it works

• Deep talent pool across functional and technical roles
• Strong process orientation and scalability
• Cost efficiency at scale
• Mature ecosystem for GCCs and GBS centers

Design considerations

• Strong governance and SLA frameworks are critical
• Attrition management must be built into the model
• Upfront investment in training and domain knowledge is essential

2. Eastern Europe (Poland, Hungary, Romania)

Eastern Europe is often preferred for multilingual support, proximity to Western Europe, and regulatory alignment with the EU.

Why it works

• Strong language capabilities
• Cultural proximity to European stakeholders
• High-quality finance and accounting talent

Design considerations

• Costs are rising in tier-1 cities
• Competition for skilled talent is increasing
• Automation plays a bigger role to sustain margins

3. Latin America (Mexico, Brazil, Colombia)

LATAM shared services centers are increasingly used for nearshore support to North America.

Why it works

• Time-zone alignment with the US
• Growing professional talent pool
• Strong regional finance and customer support capabilities

Design considerations

• Labor regulations can be complex
• Language standardization is important
• Consistency across countries requires strong process ownership

4. In-country shared services (US, Germany, Japan)

In-country shared services are often established where regulatory complexity, data sensitivity, or stakeholder proximity is critical.

Why it works

• High control and compliance
• Deep business and regulatory understanding
• Strong stakeholder alignment

Design considerations

• Higher cost base
• Focus must be on value, not cost reduction
• Automation and self-service are essential

Balancing global consistency with local flexibility

The most effective shared services organizations follow a hub-and-spoke or hybrid model:

• Global standards for processes, technology, controls, and reporting
• Local flexibility for statutory, language, and cultural requirements

This balance allows enterprises to scale efficiently while remaining compliant and responsive at the country level.

Governance is the real differentiator

Country-specific shared services only work when governance is clear and consistent:

• Defined global process owners
• Country-level stakeholders with decision rights
• Transparent performance metrics
• Clear escalation and exception management

Without strong governance, localization quickly turns into fragmentation.

The future of country-specific shared services

As automation, AI, and cloud platforms mature, the question will shift from where work is done to how it is delivered. Country-specific shared services will increasingly focus on:

• Regulatory compliance and risk management
• Stakeholder experience
• Value-added and judgment-based work

Country-specific shared services is not a compromise on global efficiency. It is a smarter way to design operating models that work in the real world. Organizations that acknowledge local realities while enforcing global discipline are the ones that build shared services centers that last.