Shared Services

The concept of shared services is not new. Advances in technology and telecommunications have enabled companies to consolidate administrative and financial activities across multiple geographical boundaries since the 1980s. The location of these activities in a shared services environment allowed companies to standardise on best-in-class operating models. Employing specialist staff with key skills and driving through process automation generated significant cost savings. This strategy typically applied to back office and/or non-core activities.

PricewaterhouseCoopers provides advice on shared services for organisations wishing to improve both the efficiency and effectiveness of transaction processing functions, enabling clients to consolidate transaction processing functions in either internal or outsourced service centres.

At PricewaterhouseCoopers, we advise our clients on the key elements of establishing shared service centres:

  • Options and strategy analysis
  • Business case development
  • Shared service centre design and governance
  • Transition planning – human resources change and associated programme management
  • Transition management and ongoing operational support
  • In conjunction with our outsourcing specialists, advising on private sector participation in shared service centre provision
The evolution of the shared services centre continues to challenge today's executives. At PricewaterhouseCoopers we believe that shared services is a continuously evolving concept. The first generation of shared services entities has only set the scene; the next generation need to:
  • Consider further capacity to manage new territories;
  • Consolidate existing shared service centres; and
  • Target activities further up the value chain such as supply chain, human resource management and selected non-transactional services.
Companies engaging in the discussion regarding the set-up of shared service centres need to be aware of the risks and benefits associated with centralising and standardising. They also need to recognise that shared services is not just about the consolidation of transaction processing activities, but now, more than ever, must support and enable the implementation of corporate strategy. Shared service centres must be proactive and innovative in developing opportunities for further cost savings and providing intuitive reporting capable of driving strategic initiatives.

Some years ago, PricewaterhouseCoopers, in conjunction with Lucent Technologies, co-authored a book ‘Shared Services – Adding value to the business units’ which is still regarded as a leading work in the shared services area. The book articulates the PricewaterhouseCoopers experience and knowledge in this area, providing both a local and global view. The publication addresses the full spectrum of shared services-related issues, including:
  • Assessing whether shared services is right for your organisation;
  • Getting started on establishing a shared services operating model;
  • Setting up the required infrastructure;
  • International challenges; and
  • Programme and project management.