Shared Service Center (SSC)

Expertise

SSCs move processes out of individual business units and concentrate them to improve market responsive-ness, cost efficiencies and service levels. SSCs are therefore formerly decentralized support functions being bundled and provided to company units through a one-stop service center. SSCs can greatly reduce support costs by achieving economies of scale, centralizing functions in low-cost regions or reengineering, standardizing and automating processes. In addition to cost reductions, companies also strive for more qualitative improvements. By defining clear and consistent service levels, uniform service KPIs and higher transparency, they raise quality of service and promote professionalization among SSC employees.

Several crucial questions have to be answered:

  • Which option is best suited to the company's individual situation (centralized approach vs. centers of excellence approach vs. regional clusters approach)?
  • What benefits and risks are associated with the defined SSC migration model?
  • How can the company ensure the buy-in of key stakeholders for a swift, effective implementation?

References

  • Setting up a shared service concept for a mechanical engineering company
  • Establishing a shared service concept for a mechanical engineering group
  • Developing a shared service concept for the sales organization of a mechanical engineering firm