Survey-Type of Services, Reasons, Selecting Site & Success Factors In Implementing Share Service Centres Or Functions

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Type of Services, Reasons, Selecting Site & Success Factors of A Shared Service Centre

The general rule of the thumb is that rule-based, homogeneous, non-critical transaction processes are suitable for shared services.

In a survey on SSC, the following are revealed ( by %):

(A) Top Five (5) Shared Services performed:

1. Accounts payable
2. Accounts receivable
3. Travel expenses
4. General ledger and consolidation
5. Payroll and benefits

(B) Top four reasons for Establishing SSC:

1. Reduction in general and administrative costs
2. Better service quality, accuracy and timeliness
3. Standardization of business processes
4. Optimization of working capital

( C ) Top Criteria when Selecting a Site:

1. Labor: availability of skilled people, new skills
2. Communication/infrastructure, telecommunications, transports, etc
3. Proximity to customers
4. Proximity to corporate/regional headquarters
5. Office spaces: availability, cost, etc
6. Labor costs

(D) Top five Success factors:

1. Senior management commitment
2. Finding the right people to lead and work in the unit
3. Early successes (quick wins) to build momentum
4. Clear communication of goals to all employees
5. Emphasis on effectively managing the change