The Master Guide to Controllers' Best Practices, 2nd Edition

CHAPTER 12.SHARED SERVICES AND OUTSOURCING

Questions that controllers must contend with abound, including: Should all finance functions be done in-house? Is there a best mix of in-house versus outsourced functions?

Many organizations are taking a look at creating shared services centers (SSCs) and asking themselves: Should finance be decentralized, centralized, or a shared services operation?

Or, organizations are looking at cutting back on some of their processes to save time, cut costs, or improve efficiency through business process outsourcing (BPO). But what should be outsourced and what are the risks? And should the outsourcing be done domestically or abroad?

Controllers need to be aware of all the options available and should be knowledgeable about the decision criteria, risks, and challenges when implementing either a Shared Services Center (SSC) or BPO model. The scope of an SSC or BPO initiative is dependent upon the size of the organization.

Large organizations may initiate a complex SSC and BPO model, where smaller organizations may select a simpler SSC model or opt for centralization without a SSC.

This chapter covers the following areas:

Chapter 12. Shared Services and Outsourcing

Shared Services Centers

SSCs Differ From Centralized Settings

Implementation of SSCs

Process for Transitioning to a Shared Services Center

Impact of implementing an SSC

The Advantages of Outsourcing

Types of Outsourcing Models

Outsourcing Non-Core Processes with Business ...