Shared services versus outsourcing

Abstract

Alternatively, shared services can be looked upon as a combination of decentral- ization and centralization. An SSO combines the best of both worlds. It utilizes economies of scale from centralized approaches. It also recognizes local needs and leaves most decision power and control in the business units. Thereby an SSO actually supports a decentralized approach by freeing up local resources to concentrate on core operational activities. An SSO provides the platform to leverage economies of scale and to combine the critical mass of skills. Smaller local units often have a problem in attracting high potentials or sufficiently qualified finance resources. A professional SSO offers a finance environment that helps attract competent finance staff and thereby reduces risk and enhances quality.