Characteristics of a successful shared services centre in the Australian public sector

Abstract

Purpose -Organisations are increasingly looking to establish shared services centres (SSCs) yet there is limited guidance available. The paper aims to propose a structured framework that will form the basis for identifying a series of characteristics associated with a successful SSC. Design/methodology/approach -Based upon Scott-Morton's organisational framework a series of dimensions were proposed for the analysis of SSCs. A case study was then presented as a starting point for identifying specific characteristics along each dimension associated with a successful SSC. Findings -Based on the framework, a case study highlights characteristics associated with a successful SSC. Specifically, the SSC is given responsibility for demonstrably reducing costs through economies of scale and process improvement of multiple transaction-oriented tasks. An enterprise resource planning system is seen as key to realising those savings. Use of the SSC is compulsory and charged for. SSC management feels they require a good understanding of each task under their remit and are focused on leading change and developing an appropriate human resource base.Research limitations/implications -The research is exploratory in nature and limited by the empirical work consisting of a single case study. Additional case studies are required to determine if the findings are generalisable. Originality/value -A structured framework for the analysis of successful shared services is provided. A case study illustrates the application of that framework. Together, the theoretical and empirical components of the paper enhance understanding of the requirements for a successful SSC.

Implementing Global Business Services in a Plural Sourcing Context: Conceptualizing Modes of Service Governance

“…The key driver process excellence corresponds to a firm's need to decrease their cost level which is consistent with previous findings. Literature shows that firms' original motivation to establish shared service centers were mainly based on achieving cost reductions as confirmed through many case studies [30][31][32]. This finding is supported by a literature study o f [6 ], wh o argue that achieving cost reductions is perceived to b e a main motivation that drive sourcing decisions.…”

Risk management challenges of shared public services: a comparative analysis of Scotland and Finland

“…Often thought of as 'back-office', there is no single generic definition of shared services. Moving from simplistic to increasingly complex arrangements, a shared service is provided to multiple recipients (Reilly 2000) from a single location (Bangemann 2005), is a centralized administrative unit providing services to internal operational units (Niehaves and Krause 2010) or whole departments in a single organization (Borman 2010), is provided by a distinct and quasiautonomous unit based on prior agreed conditions (Joha and Janssen 2010), or by a legally separate entity providing services to the parent company (Bergeron 2003). These definitions mostly refer to in-house shared services which are excluded from this study of shared services integrated outhouse.…”

A sourcing strategy for the middle offices in financial institutions

“…Shared services for sourcing the middle offices Many government and healthcare organizations have successfully adopted shared services as an alternative solution to outsourcing and co-sourcing (Amiruddin, 2013;Ask et al, 2008;Borman, 2010;Janssen & Joha, 2006;Kamal, 2012;Lindvall & Iveroth, 2011;McDowell, 2011;Minnaar, 2013;Niehaves & Krause, 2010;Ulbrich, 2010). The idea is to consolidate and standardize common business processes across multiple partner organizations using one or more shared service centers.…”

“…Back office operations such as IT services and human resource management are particularly suitable for shared services. Many success stories have been reported in the literature (Amiruddin, 2013;Borman, 2010;Lindvall & Iveroth, 2011;McDowell, 2011;Minnaar, 2013;Niehaves & Krause, 2010;Tsai & Yen, 2008;Ulbrich, 2010).…”