Shared Services Center (SSC) - Osource India
Shared Services Center (SSC) - Osource India
Shared Services Center (SSC) - Osource India
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<strong>Shared</strong> <strong>Services</strong> <strong>Center</strong> (<strong>SSC</strong>)<strong>Osource</strong> (<strong>India</strong>) Pvt. LtdMonday, January 18, 2010
What Are <strong>Shared</strong> <strong>Services</strong> and What Are the Benefits ?<strong>Shared</strong> <strong>Services</strong> is a customer-focused organizational structure and service modelthat provides back-office support primarily to internal customers andeliminates redundant processes, systems, and organizations.<strong>Shared</strong> <strong>Services</strong> Enables• Standardization of processes and systems• Increased levels of automation• Reduction or containment of costs• Improved controls• Enhanced service levels• Access to new technologies• Optimization of skills/capabilitiesKey <strong>Shared</strong> <strong>Services</strong> Attributes• Built upon standard processes, policies,and systems• Focuses on delivering excellent customerservice• Strives for continuous improvement• Run as a separate organization• Enabled by emerging technologies
What <strong>SSC</strong> can do for your Organization?• Developing the business case to gain management support• Overcoming organizational challenges and change management forseamless implementation• Creating a governance model to support <strong>Shared</strong> <strong>Services</strong> initiatives• Evaluating pricing and costing methodologies for optimal fees and fundingmodels• Assessing service offerings and aligning them with business needs• Establishing performance metrics to evaluate effective service delivery
<strong>Shared</strong> <strong>Services</strong> vs. Centralized <strong>Services</strong>SHARED SERVICESDECENTRALIZEDNegativesCustomer Focused<strong>Services</strong>CENTRALIZEDNegativesRedundantInefficientNon-StandardizedCustomerFocusedBusinessIntelligenceIndependent EntityFlat StructureLeading PracticesCost & ProcessLeadershipEconomiesof ScaleStandardizedProcessesUnresponsiveDetached fromBusinessInflexible
Scale &Efficiency<strong>Shared</strong> <strong>Services</strong> Objective<strong>Shared</strong> <strong>Services</strong> is often confused with the centralization of functions into onephysical location. In fact, <strong>Shared</strong> <strong>Services</strong> is much more:CentralizedModelService/Responsiveness<strong>Shared</strong><strong>Services</strong>ModelDistributedModel• Strategic pursuit of processstandardization enabling moreefficient processing• Customer-service oriented mindset• Back-office functions run as a frontoffice(“run like a business”)• Service managed via Service LevelAgreements, “contracts” betweenoperating units and the <strong>Shared</strong><strong>Services</strong> organization• Skilled and scarce resourcesleveraged across multiple operatingunits• Operating units focusing on theircore processes and analysis
Split of SavingsOnly by addressing all three components ‘standardization, consolidation and re-engineering’, full benefits ofimplementing <strong>Shared</strong> <strong>Services</strong> can be achieved25%50%25%ComponentsStandardization• Standardize processes and policies• Minimize number of different systemsConsolidation• Reduce physical locations• Streamline organization• Outsourcing, where applicableRe-engineering• Establish a service culture• Organize around end-to-end processes• Implement best practice processesExamples• Investment in leading-edgeIT capabilities• Implement global SAP standard• Automation of core processes• Single vendor master data base• Central shared service center• Moving to a low cost site• Reduced finance staff andmanagement layers• Process oriented organization• Service culture through servicelevel agreements• Independent legal entity
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