Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+

Personnel Today

Register
Log in
Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+

HR transformationHR Technology

Seven ways to build a world-class shared services centre

by Todd Horvath 28 Jan 2016
by Todd Horvath 28 Jan 2016

Building a shared services function used to be all about saving money. But there are many other drivers of success, according to ADP’s Todd Horvath.

Delivering quality while still following best practice is just as important as cost containment for today’s large multinational enterprises.

Shared services resources

HR transformation: Good practice guide

HR service centres

In the past, moving work to a shared services centre (SSC) was primarily driven by cost-containment, standardisation and process improvement initiatives.

But this impetus is shifting as global enterprises discover that previously cost-effective locations are less so as the competition for skilled labour in those locales has gradually driven labour costs up.

Another important emerging factor is new technologies, which offer opportunities to dramatically increase the cost efficiency of an SSC, while decreasing the importance of labour arbitrage. So what’s a global business to do?

I believe there are seven attributes that world-class SSCs should consistently embody to help drive success:

1. Skilled people

Any business solution is only as good as the people who deliver it, and shared services centres are no different.

An educated, highly skilled workforce is essential to successfully drive the other fundamental elements that comprise a top-notch SSC.

Experts in shared services technologies, customer relations, employee engagement, and quality assurance form the foundation for a center of excellence within a shared service centre.

2. Effective leadership

While having experts who deal with clients on the front line is important, having leaders who can run the operational side is invaluable. Adept managers can resolve day-to-day issues and help continuously improve processes.

3. Trained compliance experts

Maintaining compliant solutions in regions where legislation changes monthly can be extremely challenging.

That’s why it is essential to have trained subject matter experts who can monitor compliance updates and implement those changes across a shared services model to benefit every client.

4. Specialised customer relations

Here the challenge is more than just providing in-language support for clients – although having experts who speak more than one language can be a huge competitive asset.

Can your experts discuss technology issues with very sophisticated clients? Can they discuss issues like system configuration and maintenance, case resolution and change requests, or technical root-cause analysis? Can they help on a strategic level? Can your experts drive internal performance and quality resolutions?

These factors are the crux of quality customer relations, and have proven to be highly valued by customers.

5. High employee engagement

Typically, shared services centers are large organisations. So it is critical to maintain a high level of employee engagement to avoid disruptions.

If employee turnover is too high, maintaining quality support is very challenging. So it is crucial to focus on HR management and performance management, offer robust training, and provide employees with opportunities for professional development.

It is not too simple a statement to say that satisfied shared services staff result in satisfied clients.

6. Leading-edge systems and technology

In a lot of discussions lately about the future of the shared services model, it has become apparent that chasing better value labour is no longer sustainable.

New technology is the trend now, and we are seeing the impact of technology as it enables virtual teams, encourages the use of crowd sourcing and leverages social media.

New technology is making its mark as well. One promising area is robotic process automation (RPA), which eventually may enable shared services centers to further reduce costs.

A recent KPMG study explored the rise of RPA, calling it “the direction in which the innovation wave is headed”.

7. Productive client partnerships

At the heart of the shared services model is collaboration between the service provider and the client.

Our duty is to be knowledgeable, but shared services can only succeed when you have equally skilled, knowledgeable partners.

Many of the issues between clients and shared services providers arise from a lack of communication and trust between them. Only a continuous exchange of knowledge and communication between teams can build a relationship of trust and cooperation.

Sign up to our weekly round-up of HR news and guidance

Receive the Personnel Today Direct e-newsletter every Wednesday

OptOut
This field is for validation purposes and should be left unchanged.

Ideally, clients of shared services centers should expect access to all of this expertise and support. A Centre of Excellence, along with a strong client relations organisation, which is integrated or closely collaborating with a SSC, can help ensure that your SSC is moving the right direction across all seven pillars.

Today’s multinational companies want to partner with service providers who can give them access to: scalable, highly efficient services and support; service-line-specific and country-specific specialists in their time zone; compliance subject matter experts; and accurate, lean processes that can help their global businesses succeed.

Todd Horvath

Todd Horvath is president of multinational clients at ADP where he leads a global team that provides human capital management expertise and shared services to clients in more than 100 countries.

previous post
Will better access to HR support improve management at SMEs?
next post
Play and professionalism at work: boosting engagement while maintaining standards

You may also like

CIPD appoints expert in AI to boost support...

8 May 2025

Preparing for a new era of workforce planning...

8 May 2025

M&S pauses hiring as it deals with cyber...

2 May 2025

Quarter of employees worried AI will threaten jobs...

28 Apr 2025

Google concerned by slow AI take-up in UK

25 Apr 2025

HR teams build AI use but seek more...

14 Apr 2025

Redefining employee relations for the future of work...

27 Mar 2025

The future of work: is the UK workforce...

11 Mar 2025

What does the TV show Severance tell us...

14 Feb 2025

Benify and Benefex merge to become Benifex

12 Feb 2025

  • 2025 Employee Communications Report PROMOTED | HR and leadership...Read more
  • The Majority of Employees Have Their Eyes on Their Next Move PROMOTED | A staggering 65%...Read more
  • Prioritising performance management: Strategies for success (webinar) WEBINAR | In today’s fast-paced...Read more
  • Self-Leadership: The Key to Successful Organisations PROMOTED | Eletive is helping businesses...Read more
  • Retaining Female Talent: Four Ways to Reduce Workplace Drop Out PROMOTED | International Women’s Day...Read more

Personnel Today Jobs
 

Search Jobs

PERSONNEL TODAY

About us
Contact us
Browse all HR topics
Email newsletters
Content feeds
Cookies policy
Privacy policy
Terms and conditions

JOBS

Personnel Today Jobs
Post a job
Why advertise with us?

EVENTS & PRODUCTS

The Personnel Today Awards
The RAD Awards
Employee Benefits
Forum for Expatriate Management
OHW+
Whatmedia

ADVERTISING & PR

Advertising opportunities
Features list 2025

  • Facebook
  • Twitter
  • Instagram
  • Linkedin


© 2011 - 2025 DVV Media International Ltd

Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+