Top 5 Benefits of Shared Service Center for Business

Top 5 Benefits of Shared Service Center for Business - Image by storyset on Freepik

What is a shared service center?

A shared service center is the part of any organization that centrally supports the different teams or departments of the organization for a wide range of services like Human Resources, Finance, IT, Sales Support, and many other operational activities to run the business smoothly.

Here are the top 5 benefits of Shared Service Center:

1. Standardization of the process:

Defining the process at one part of an organization and making it standard in all other parts is one of the most challenging pieces of work for any company out there. For example, Reliance offices are located in different parts of the world in many countries. In all the offices they have some processes and rules which require a similar workflow to complete the task. So here comes the SSC (Shared Service Center) where Reliance will set up the SCC in one of the countries like the USA, India, or China and create standard workflow at this location to support the other office in different locations.

2. Cost Effective: 

Cost Effective
Cost Effective – Image by jcomp on Freepik

The next benefit is Cost Effective and it is one of the top benefits of having a Shared Service Center in any organization or company. Also, this is a very important factor for a business to manage its cost effectively as it will directly impact the profit of the business. So the question is how SSC can help to manage the cost effectively?

  • A shared service center will be set up at a location where skilled resources are available at a low cost compared to one’s own country or area.
  • For example, companies located in the USA will have to pay less to SSC compared to hiring and paying salaries to employees in the USA.
  • Standardized processes can help optimize the process and save a lot of time while performing it, which reduces the cost of operations.

3. Increased Productivity 

With the implementation of process standardization at a shared service center, there is excellent efficiency in the daily operation with very few errors in the process. Once the efficiency improves the productivity of the employee improves and the cost of operation reduces. Staff at SSC can easily help different departments of the organization to communicate and coordinate which saves a lot of unnecessary time in finding the right contact person. Overall SSC can increase the productivity of the company and profit as well. 

4. Improved quality

Improved quality

With the help of central quality control operations, a shared service center supports the company to improve the quality of the process running in the company. So you must have a question on how SSC works to improve the quality. SSC creates a central and standardized quality control process to regularly examine the quality of the process and the responsible person. Also, there will be documents like process workflow, process guidance document to perform the activity, etc. which will help the responsible person or the new employee of the department to maintain the quality. 

5. Greater Flexibility

Every organization, their functions are divided into two categories. One is the core function and the second is the non-core function. Many times it happens the employees who are responsible for core functions are unable to focus on that due to other non-core functions, which is impacting the quality and the productivity of the organization. So companies move the non-core function to a shared service center so that local offices can easily focus on the core function and generate more business for the company. It gives greater flexibility by finding out and moving the process to SSC for better operations of the business. 


In conclusion, having a Shared Service Center in any organization is very beneficial for improving quality, productivity, and standardizing processes. In turn, it will help the organization to reduce the cost and to increase the profit of the business by allowing core function people to focus on generating more new business. 

What are your thoughts on a shared service center? Is it really helpful for any organization?

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