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Part - VII

The Cost Savings generally observed with Shared Service Strategy implementation are: -

• Firms can expect to save 15 percent through consolidation of corporate services.

• Further 15 percent can be saved by automation of basic transactions.

• Additionally, Three percent of employee related cost could be saved.

Moving towards Shared Service Model

The steps for moving towards SSC are: -

• Clearly Define the Strategy: Senior level sponsorship should be obtained which tends to focus the attention. The operation should be viewed as a standalone business. How systems will be integrated. How business processes are harmonized across regions and business divisions. What exactly the SSC will be responsible for and what processes will be left in country.

• Communication to the Stakeholders: Benefits of the transformation are communicated clearly to all parties who will be affected by the implementation of shared services. Staff will be able to concentrate on value added activities.

• Make the Best Use of Technology: Technology will be a core component of any SSC. The challenge is to integrate and configure the systems that are used to manage the shared service business. One of the benefits of centralizing business activity is to increase visibility and control. Web based technology is increasingly used to facilitate the interaction between SSCs and their internal customers. Much of the SSC activity will be transactional and getting processes as automated as possible is a principle aim. This allows the SSC staff to concentrate on managing exceptions and driving efficiency gains.

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