Q. Benefits of shared service centres ?

¸ Economies of scale e.g. sharing overhead of a centralised function or process across divisions in the same group, it avoids divisions duplicating functions.

¸ Divisional managers can retain entrepreneurial speed and agility, avoiding complex or non-core activities and concentrate on competing more effectively.

• Reduction in cost through shared operations.
• Financial savings from standardising technology and processes within a group.
• Centralised and consolidated processes make it easier to provide support to multiple business units. This gives flexibility to quickly add new business unit's e.g. rapid integration of new acquisitions.
• Could provide higher quality service and improved customer satisfaction e.g. concentration of expertise, knowledge and skills.