How shared services can grow your business in Saudi Arabia.
The shared services business model allows companies to centralize business functions that are used across multiple locations into one central office.
Creating a shared services center offer many benefits for companies including; cost reduction, increased service quality and an increase in process efficiency. The benefits of shared services in an increasingly competitive market make it a popular decision for businesses.
Recent research from PwC and Deloitte, show that shared services greatly assist in business growth through the benefits they provide.
According to the studies, the top benefit (42%) of implementing shared services is cost savings. From the cost savings received from using shared services, 54% gave the money back to the company, 13% invested in technology, 12% invested in process improvement and 6% invested in talent development, according to the Deloitte 2015 Global Shared Services survey.
For most businesses, staff is the primary expense of creating a shared service centre, but shared services help with headcount reductions, with 24% saying this was their second biggest benefit of shared services, according to the PwC study.
The PwC study showed that 21% of companies that used shared services experienced an increase in efficiency. Shared services increase efficiency through consolidating systems and processes that are used company wide but are implemented and managed centrally.
By outsourcing administrative tasks to the central branch or shared service centre, employees are able to focus on high value-adding tasks. An increase in efficiency is also shown through faster decision-making and execution, with high-level decisions being made centrally, execution throughout branches is faster because processes are already established.
Flexibility and agility
Businesses that successfully implement shared services benefit from flexibility and agility in a dynamic market. Flexibility and agility are achieved through standardisation, scalability and scope. Standardisation of roles, processes and technology, makes organisations more flexible as they are able to integrate or remove operations. They are also able to train new staff more efficiently, at a lower cost.
Shared services allow for a greater amount of scale through centralization and performance management. Centralization increases the visibility of resources and allow management to effectively assess what is required. Effective performance management gives clarity about who does what, where, how and at what cost. This creates faster and more effective decision making when scaling the business.
Flexibility and agility is also achieved through functional and geographical scope. The more responsibilities given to the shared services team the greater the standardization and transparency of responsibilities, allowing change to be executed faster across the organization.
Centralizing business functions through a shared services business model benefits businesses beyond the bottom line. It is evident that shared services improve the quality, effectiveness and productivity of businesses that use this model and is an effective way to increase competitiveness in the market.
For support implementing shared services, contact Proven on +966 11 411 1127 or firstname.lastname@example.org.