On the surface, it appears that most enterprises today are taking full advantage of both shared services and outsourcing. However, HfS research’s latest survey data, conducted with accounting association ACCA, emphatically demonstrates that only a modest fraction of business process has actually been shifted to either the shared service center or the outsourcing partner. In most cases, over two-thirds of transactional process work is still, bewilderingly, sitting in the business units, despite the proven business benefits of centralizing processes.
It’s high-time to segment the industry so we can all focus on delivering value, and not solely cost-cutting
At the end of the day, it’s not all about outsourcing and it’s not all about shared services; it’s about focusing on how to globalize processes, how to transform finance (and other) functions, and how to govern it all in a global business services context. There is no dominant model, it’s more about achieving the right balance across all delivery models to achieve the best business goals. In conjunction with global accounting body ACCA, We spoke to 682 large organizations currently running finance in either an outsourced or shared service framework (or both) – and the results are emphatic: those organizations relying predominantly on outsourced delivery, or predominantly shared services, are viewing their finance delivery performance much more skeptically
Service providers are in pole position to provide the value clients need, however, there needs to be some give-and-take on both sides to move beyond mere “augmentation”