Maximising Efficiency and Flexibility: An In-Depth Look at Shared Services Centers (SSCs)

A Shared Services Center (SSC) is an organizational model designed to achieve cost reduction, quality improvement, and enhanced strategic flexibility. This dedicated unit within an organization handles operational tasks such as human resources, payroll, accounting, compliance, IT, legal, and security. Typically, SSCs are leveraged by mid-sized to large, decentralized, or distributed organizations aiming to optimize operations and maximize efficiency.

Three Popular Configurations of Shared Services

The Shared Services Center (SSC)

This configuration ensures greater cost-efficiency as all policies and instructions originate from a single, centralized source. By consolidating services and standardizing processes, organizations achieve economies of scale, reduce redundancies, and streamline operations. This approach enhances control and consistency, leading to significant cost savings and improved service quality.

Free-Standing Shared Services Department

This setup promotes autonomy among various shared services centers, allowing each to optimize its strategy independently. While this model fosters innovation and responsiveness, it can pose challenges in resource and technology sharing. Inefficiencies and increased costs may arise if coordination between centers is problematic. However, when managed effectively, this approach provides tailored solutions for different organizational divisions.

Outsourced Shared Services Center

Here, an external organization or service provider delivers services such as payroll, IT support, or customer service. This model leverages external expertise, often resulting in cost savings and enhanced service delivery. Organizations can focus on core competencies while outsourcing non-core functions. Requests and services are managed through a vendor agent, ensuring efficient service provision.

SSCs focus on key processes such as delivery and performance, best sharing practices, and improving customer relationship processes (Deloitte, 2011). Adopting a shared services model can lead to significant operational improvements and better business outcomes.

Why Large Multinationals Choose SSCs

• Cost Reduction: Centralizing services and eliminating redundancies achieve substantial cost savings.
• Standardization and Process Efficiency: Standardized processes improve efficiency and consistency.
• Capability Development: Centralized services develop specialized expertise within the SSC.
• Business Value Enhancement: Optimized operations and reduced costs enhance business value.
• Digital Agenda Acceleration: Leveraging technology advances an organization’s digital agenda.

Implementing a shared services model requires careful planning and execution to address potential challenges and maximize benefits. However, with the right approach and support, SSCs can significantly enhance an organisation’s operational efficiency, strategic flexibility, and overall performance.

How Can Aidosol Help?

Aidosol, specializing in shared services consulting, provides tailored solutions for seamless SSC implementation. We begin with a thorough assessment of your operational landscape, identifying key areas for shared services. Our comprehensive strategy aligns with your business goals and addresses industry-specific challenges.

Our consultants customize the shared services model to fit your needs, focusing on optimizing processes, leveraging the latest technologies, and ensuring effective communication. We guide you through each implementation phase, mitigating risks and ensuring a smooth transition.

Aidosol also provides ongoing support, offering training and development programs and performance monitoring to ensure your SSC continues to deliver value. Partnering with Aidosol empowers your organisation to achieve operational excellence, strategic flexibility, and sustainable growth through effective SSC implementation.