Shared services are not a new business trend, however in increasingly competitive markets, we are seeing more companies looking to implement shared service centers in Saudi Arabia as a way of reducing costs and improving service quality.
Shared services allow companies to have one department deal with administrative tasks, such as finance, HR or marketing, this can either be an internal department or outsourced to a shared service provider.
Shared services are the consolidation of departments that are used by multiple areas or office locations. They are efficient as they centralize departments and lead to streamlined processes, a reduction in staff, costs, and software. Most often, shared services are finance, HR, marketing, purchasing, inventory, payroll, hiring, or IT management.
Shared services require companies to centralize their support services into one location, whether that’s in-house or outsourced to a shared service provider. The site is responsible for performing all the department functions required to successfully run the entire company across multiple locations.
According to a PwC survey, there are 3 main models that companies adopt for shared services;
Shared services improve cost efficiency, service levels, and market competitiveness of companies. As the country looks to grow the private sector, we have seen an increased interest in shared service centers in Saudi Arabia and expect this to continue.
For consulting on shared services or to discuss outsourcing your services, contact Proven at +966 11 411 1127 or [email protected].