While establishing a shared service center, the important question is, whom this entity is supposed to bring their services to? Will there be single countries, regions or maybe group-internal clients operating world-wide?
Therefore, the are three forms of shared service centers from this point of view:
- local,
- regional,
- global.
The concept of a global shared service center is very interesting. It offers high efficiency as it can be established in such a geographical location where the best practice processes can be realized in the most efficient way, assuring the optimal cost structure. However, the transition costs connected with the migration into one global location can be reasonable. Except of that there are many processes and sub-processes which have to be offered locally for legal and/or organisational reasons.
In practice, most corporations use a heterogenic model, having all: local, regional and global shared service centers. Let's take Hewlett Packard as an example: they have one global shared service center in Bangalore dealing with asset accounting services for the wholle group. Except of that, the HP Group has some regional shared service centers located world-wide.
Posted by Magdalena Szarafin on June 26, 2009 at 3:43am on http://www.szarafin.info
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