The article discusses what shared services is and how it helps your business.
Turn the Tables in ’21, adopt a Shared Services Model
Shared services is a business model that re-imagines how a company with many different business units operate. In a shared services model, companies connect business units through common functions to streamline and improve how they conduct business (See Figure 1). This often leads to more consistent and high-quality service delivery at lower cost. A hybrid shared services model means splitting the shared services between in house resources and outsourced resources. Outsourcing companies can perform certain functions at a significantly lower cost, and sometimes can even offer better performance, than locally sourced resources. The key is understanding what services you should send offshore and which services you should keep in house. A company like Connext Global Solutions can expertly perform functions such as accounting, billing, customer service, development, graphic design, transaction coordination, and various other tasks. When looking at the services described above you have to make the assumption that a BPO partner can often do it better and cheaper than you can locally.
Figure 1. Shared Services Model Diagram
The shared services model is designed to improve both efficiency and effectiveness. Lower labor support costs, greater control, increased productivity, increased skill levels and better customer service are all examples of positive benefits from shared services.
Everything in 2021 and beyond will be about driving costs down while driving customer experience and therefore revenue, up. Below is a sample forecast of 10-year support cost, assuming no growth, comparing local support cost versus outsourced support cost in shared services.
Figure 2. 10 Year Support Cost Trajectory in a Shared Service Model
The additional benefit of a shared services model, especially one with an outsourcing partner, is the reduction of facilities cost or the burden of managing a segregated, remote workforce. Companies like Connext have been managing and implementing remote teams for years before the pandemic created the need for most businesses. We reduce the cost and time associated with managing a remote team by having pre-established recruiting, facilities, reporting metrics, and day to day management procedures.
Shared services is a great way for mid-sized businesses to scale and finding a suitable offshore partner reduces the risk exponentially. If you are thinking of implementing shared services, using an outsourcing partner is a great way to accelerate your path to success. To learn more contact us and find out how we can help you scale your operation through a Shared Services model. If you are looking for a suitable BPO partner check out our latest White Paper on ‘The Top 5 Mistakes When Choosing a BPO Partner’.
Connext Global Solutions helps companies build custom, dedicated support teams in the Philippines. Learn more about Connext Global Solutions.
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