Shared Services Center: What are They?

A Shared Services Center (SSC) is a centralized unit within a company or organization that provides support services to other departments or business units within the same company. These services can include finance and accounting, human resources, information technology, procurement, customer service, and other back-office functions.

The goal of an SSC is to consolidate and streamline support functions across the organization, reducing duplication of efforts and costs, and increasing efficiency and effectiveness. By centralizing support services, companies can achieve economies of scale and benefit from specialized expertise and resources that may not be available in individual business units.

SSCs are often established in large organizations that have multiple business units, geographic locations, or international operations. They can be located in-house or outsourced to a third-party provider, depending on the company's needs and resources. SSCs are commonly used in industries such as banking, healthcare, manufacturing, and retail, among others.

Overall, SSCs can provide significant benefits to companies, including cost savings, improved service quality, and enhanced strategic focus on core business activities.

What is a shared services center?

A Shared Services Center (SSC) is a centralized unit within a company or organization that provides support services to other departments or business units within the same company. These services can include finance and accounting, human resources, information technology, procurement, customer service, and other back-office functions.

The main purpose of an SSC is to consolidate and streamline support functions across the organization, reducing duplication of efforts and costs, and increasing efficiency and effectiveness. By centralizing support services, companies can achieve economies of scale and benefit from specialized expertise and resources that may not be available in individual business units.

SSCs are often established in large organizations that have multiple business units, geographic locations, or international operations. They can be located in-house or outsourced to a third-party provider, depending on the company's needs and resources. SSCs are commonly used in industries such as banking, healthcare, manufacturing, and retail, among others.

Overall, SSCs can provide significant benefits to companies, including cost savings, improved service quality, and enhanced strategic focus on core business activities.

What are the benefits of a shared services center?

Shared Services Centers (SSCs) offer several benefits to companies, including:

1. Cost savings: By centralizing support services, companies can achieve economies of scale and reduce duplication of efforts and costs. SSCs can also leverage specialized expertise and technology to provide services more efficiently and at a lower cost.

2. Improved service quality: SSCs often have specialized expertise and resources that may not be available in individual business units. This can lead to improved service quality, faster response times, and better customer satisfaction.

3. Enhanced efficiency and effectiveness: SSCs can streamline processes, eliminate redundancies, and standardize procedures across the organization. This can lead to greater efficiency and effectiveness, as well as improved data quality and reporting.

4. Increased strategic focus: By outsourcing support services to an SSC, companies can free up resources and focus on core business activities that are critical to their success. This can help companies stay competitive and achieve their strategic goals.

5. Better risk management: SSCs can help companies manage risks related to compliance, security, and data privacy. SSCs can also provide disaster recovery and business continuity planning services to help companies prepare for unexpected events.

Overall, SSCs can provide significant benefits to companies, including cost savings, improved service quality, and enhanced strategic focus on core business activities.

Improved efficiency

Improved efficiency is one of the primary benefits of a Shared Services Center (SSC). By centralizing support services, SSCs can streamline processes, eliminate redundancies, and standardize procedures across the organization. This can lead to greater efficiency and effectiveness, as well as improved data quality and reporting.

Efficiency gains can be achieved in several ways, such as:

1. Process standardization: SSCs can standardize processes across different business units and locations, reducing the time and effort required to perform tasks. This can also improve data quality and reporting, as everyone is using the same procedures.

2. Automation: SSCs can leverage technology to automate repetitive tasks, reducing the need for manual intervention and improving accuracy and speed.

3. Specialized expertise: SSCs often have specialized expertise and resources that may not be available in individual business units. This can lead to faster and more effective problem-solving, reducing the time required to resolve issues.

4. Scalability: SSCs can scale services up or down as needed, depending on the company's requirements. This can provide greater flexibility and agility, especially during periods of rapid growth or change.

Overall, improving efficiency is a critical goal of SSCs, as it can lead to cost savings, faster service delivery, and better overall performance.