Is Your Company Ready For Outsourcing Shared Services?

The many benefits of shared services include savings, quality and response time

Introduction

Business world is under rapid changing, modern enterprise is no possible to be invest everything to build up the competitive advantage for all the area. Strategic pick the key result area (KRA) and continuous focus on advancing at those may be strategic route to go. For the rest of non-core area will need to leverage business and service partner by leverage and outsourcing to them to maintain the overall competitive value chain proposition.

Businesses need to be as cost-effective as possible and one option that companies can take is to adopt a shared services model for some of its functions. For in source all the  functionality may not guarantee competitive advantage, since you need to consider in the competency for managing and future continuous investment for resource (no just facility, man power, financial resources, but also the continuous upgrade and adapting for the best global practice at that time). After you consider for all the short, medium and long term investment requirement, shared services by tap and leverage who willing to invest in the particular competency may be a good strategic option.

Shared services can cover a number of processes, in here we focus on enterprise IT  technical services, such as specific product or technical functionality such as IT operation management facility, network operation center, security operation center, vulnerability assessment center. Normally these types of functions can be decentralized, standardized or centralized. There are many benefits to tap shared services, including economic, quality, response time, and strategic benefits.

Organizational Functions

Apart from the benefits from adopted shared service model, businesses can adopt other functional models such as decentralized, standardized or centralized.

• Decentralized – This type of model is found where a function, such as purchasing or sales, can be located in each of a company’s locations. This function is autonomous, with its own separate staff and possibly separate technology systems. However, this model is very responsive to the needs of the users at the facility.
• Standardized – In this model, there is a separate function at least of the facilities operated by separate staff. However, in this model, the processes are standardized and they may use the same or similar technology systems.
• Centralized – This model operates with a single department that exists at one facility that is used by every facility in the organization. In this model, the emphasis is on efficiency and does not have any service level agreements (SLA) with users at any of the facilities.
• Shared Services – A shared service function may be located at one low-cost site but is customer focused with agreed upon service level agreements. The performance of the shared service function is based on measurement of the service level agreements. For example, by subscribe to E-SPIN Shared Services to tap E-SPIN extensive competency as your company strategic asset and at the same time your company can focus invest on other business area to achieve synergy effort.

Benefits of  E-SPIN Shared Services

E-SPIN shared service function is based on a location which has skilled employees but is lower in cost to host in compare with your do it yourself, due to scale and spreading cost among the shared customers.

Some areas where shared services were most popular. These were – infrastructure availability and security monitoring,  specialized product maintenance,  endpoint and gateway protection, business technology transformation advisory, e-business consultancy and Help desk function.

Is Your Company Ready For Outsourcing Shared Services?

If a shared service model has been decided upon, it is possible to outsource the shared service function to a third party, such as E-SPIN Shared Services Outsourcing (SSO) to complement your business function and services.

The outsourcing of shared services is successful when there is an executive management buy-in when the processes are standardized across the enterprise, and the scope of the function is clearly defined for both party.

For potential channel partner, end government and corporation client requirement, feel free to contact E-SPIN for the in-depth discussion for your requirements.