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Part - V

The Benefits derived from SSC are: -

• Consolidation of corporate services units: Firms can realize Economies of Scale when corporate activities performed on a shared services model; hence this drives down the firm's operational costs.

• Streamlined Processes: The business processes within a Firm will be streamlined and standardized. This acts like presence of a corporate backbone when firm decides to diversify the operations and enter new businesses, because they will possess the strategic benefit and ease of unified, standard procedures across the country.

• Automated Transactions: Transactions are automated and are executed with precision and speed, owing to their centralization and automation.

• Increased Expert Capacity: Firm will be able to develop domain experts in various areas like Finance and Marketing through SSC. The concentration of services in one location will enrich the employees experience level and help in employee retention.

• Increased Client Focus: Central units are free of any person dependence, are process driven and are totally Client focused.

The Costs associated with deploying a Shared Service Strategy are: -

• Staff Training: Staff, which is trained to work in a certain given process, has to be re-trained in new and changed processes, which have a training cost.

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* Contributed by -
Narendar Lokwani,
II Year, PGSM,
IIM Bangalore,
Pre-Sales and Mktg Team, Aditi Technologies.