Shared services centers synergy and performance

Since 2006, a high number of multinational corporations (MNCs) have established shared services centers (SSC). Although the trend began in the private sector, the public sector has also rapidly set up the centers. With the modern economic climate and the high competition, both public and private organizations have no choice but to examine and improve the present business models for operational efficiency. The organizations may realize that when the SSC model is compared with other operational service processed in the firms, it is more efficient in service delivery. In establishing SSC, the private and public organizations seek to: reduce costs, achieve process efficiency, create transparency, implement compliancy and improve the quality of service delivery (Searle, 2006; Bergeron, 2003). A successful SSC is that which gives the company competitive advantage by accomplishing the overall strategic objectives. Shared services according to many researchers refer to the concentration of functions, services or resources into one distinct entity (Fyfe, 2006; Rahman, 2005; Opheij & Willems, 2004).