Page 170 - E2 Integrated Workbook STUDENT 2018

Chapter 12

5.2 Shared services centres (SSC)

The finance function across the organisation may be consolidated and run as a
central unit, or a shared services centre (SSC).

A SSC refers to the provision of a service by one part of an organisation or group
where that service has previously been found in more than one part of the
organisation or group. An example would be a large multinational organisation with
financial processing centres in several countries in which it operates, chooses to
consolidate these activities at one site or shared service centre (SSC).

Advantages Disadvantages

 Headcount reductions.  Loss of business knowledge.

 Reduction in premises and  Further from the everyday
associated costs. decision making.

 Potential favourable labour  Business relationships are not
rates in the chosen as strong.
geographical location.

 Quality of service provision.
Learning and sharing of
knowledge.

 Consistent management of
business data.

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