November | 2012
Newspapers today are reporting several sales of captive shared service centers to third-party BPO companies. And many more shared services of captives are on the block, like Fidelity, Franklin and Dell - the list seems endless.
This trend reopens what many thought were already settled questions in the shared service versus third-party debate: Which model adds more value to the shareholders and to the firm in the longer run? What should be the roadmap?
Over the last decade and a half, almost all companies have made the same journey; they started as back office support for mundane/routine transactional activities (claims processing, email support, tech help desk), then slowly graduated to value-added activities (invoice queues management, cash applications, general ledger, fixed assets, etc.), before finally moving to crucial processes such as high-end analytics, financial reporting, regulatory filing, etc.
Where does it make sense to use the Shared Services Center (SSC) model? They are best when:
A third-party BPO company is the better option when the company:
Read more about the captive vs. SSC debate in our article,
'Pros and Cons of Captive versus Third Party Shared Services Center.'
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© 2021 Wipro Limited |
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