Shared services - Deciding between internal and outsourced models
White paper
In this white paper, SAP examines and elaborates internal and outsourced models of Shared Services.
Shared Services can either be internal or external, in the form of Business Process outsourcing (BPO). To decide which is best for their purposes, as well as how to design processes and technology to harness shared services’ potential, company executives must assess their own situation and business processes closely.
There are a number of obstacles to success in service centralization; crafting an effective “extended enterprise” that works seamlessly across organizational boundaries is not easy and requires a strong understanding of process and technology.
The effect of software and its deployment on centralization’s success is analyzed: business decision makers must understand the potential and constraints of process and technology design to make realistic strategic decisions and direct their teams appropriately.
Finally, we examine tenets of successful transformation and implementation. The problems inherent in these steps are not only relevant for the implementation team, but also should be understood by those executives involved in strategic decision-making.
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