Benefits of shared service centres, Strategic Management

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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.

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