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In this article I will be able to differentiate shared services from outsourcing. In most instances, Shared Services is a detached business unit created inside a company or organization responsible for delivering a set of services mutually to the operating business divisions and the corporate functions. The only one of its kind in the marketplace, the cloud-based Outsourcing Accelerator delivers the speed, power and standardization needed to modernize the RFP process – at a modest cost. Scobbo discusses the pros and cons of each HRSS and outsourcing … Shared Services vs. Outsourcing: Can I Have Both, Please? You’ve likely heard of both outsourcing and managed services and perhaps lumped them together. Join Shared Services & Outsourcing Network today and interact with a vibrant network of professionals, keeping up to date with the industry by accessing our wealth of … But for some who are still unfamiliar with the concept, HR shared services are those services which are outsourced from an external vendor, for instance, services such as payroll processing or recruitment. Digital Ecosystems. What is the different between Outsourcing and Shared Services ? Depending on the kind of industry you work in, the kind of work you need, your size, your scaling plans, etc., you might choose either managed services or shared services based on your needs. The managed services model is one that Dynamix Solutions knows extremely well. What are you looking for? The debate over whether it is better to outsource your human resources function or use an in-house department is one which has a number of factors to consider; not least with regards job losses and the money which can be saved by making the correct choice for your business. Shared Services and Outsourcing models are no longer just for Global Fortune 500 companies. If you think that the managed services model beats shared services in the shared services vs. managed services comparison, contact us today! Our recent State of Outsourcing study, conducted with the Outsourcing Unit at the London School of Economics, has revealed that nine out of every ten enterprises will be increasing or maintaining their reliance on either, or both, outsourcing and shared services over the next three years. By Kevin Lewis. OI Outsourcing Buyer Services leverages decades of experience and the mother lode of proprietary IP with our Outsourcing RFP Builder and RFP Responder software. More than ever, outsourcing is being viewed as one of the best ways to […] Outsourcing vs. Shared Services: what global companies do ey trends and perspectives Table of Contents Executive Summary 1. People have been arguing about the relative merits of both for years. share Digital Backbone. Shared Services is a developing business model that allows resources to be controlled across an entire organization. There is not one particular process that is beneficial to companies and certainly not so if you have just about started. The Shared Services & Outsourcing Network (SSON) is the largest and most established community of shared services and outsourcing professionals in the world, with over 100,000 members. Key trends observed Trend #1: Leveraging outsourcing to boost Shared Services Trend #2: Accelerating globalization of Shared Services in a unified governance Shared services and outsourcing – a robotic future? Tweet on Twitter. within shared services or outsourcing arrangements. Finance shared service centers drove significant gains in terms of process efficiency and economies of scale. Shared Services vs. BPO There has long been an argument between Shared Services and Business Process Outsourcing (BPO) – is one better than the other? 7 In-Source Outsource Global Hub in India European Hub in Romania Hub in France American Hub in Mexico Illustration of an hybrid and global model I. Some companies require from the providers to test the scenario of pulling of the plug and checking if the provider is able to re-route the work to other service centers [Outsourcing Insight]. Shared Services: an imperative to leverage the size of your company 2. Outsourcing vs. shared services model 81 happen, find early disaster recovery method and create a strategy, which will protect business continuity. Culture, strategy and scalability must also be considered. What are some preliminary points you need to consider when weighing outsourcing vs. HR Shared Services? they also freed retained finance resources to devote more Shared Services: Factors to Consider. However, there are some clear differences between both that are worth noting if you’re considering whether to use either option. In-house onshore services Shared services and outsourcing are two different approaches about optimization of back-office functions in organizations. With all these inputs available, you will project your future cash inflows (savings estimates) and cash outflows (costs reviewed in component #6) to obtain your discounted cash flow (DCF) and expected NPV. Blairdods - June 15, 2006. As organizations scale, there is nothing worse than conflicting infrastructure. Published on March 27, 2019 March 27, 2019 • 21 Likes • 2 Comments Shared services is a model for delivering corporate support, combining and consolidating services from headquarters and business units into a distinct entity based on market-like principles. Insights. Think it's all about invoicing and cutting costs? If you can get the 7 components above right, you should be able to develop a very realistic business case for your shared services or outsourcing initiative. We provide insights into how to integrate shared services, outsourcing and internal improvement into clients’ broader transformation strategy. 32. views. Interested… Both service varieties involve lending important service needs to companies outside of your own business. There are, albeit, certain differences between HR outsourcing services Vs HRMS and each of them have their fare share of advantages over the other. In this part of my research I analyzed what are differences between the two models that determines its using. I found which are Business Process Outsourcing or Shared Services? GO. Everybody knows what HR shared services (HRSS) mean. Shared Services vs. Business Process Outsourcing – who will survive? Outsourcing, shared services, and the future of your tax department Tax leaders continue to face increasing pressure on the regulatory front as they work to address issues like Base Erosion and Profit Shifting, new country-specific regulations, and traditional requirements. Companies should contemplate the use of shared services in the system. The shared-services entity must be able to compete vigorously with outside vendors. Companies such as General Electric and Baxter Healthcare first applied the shared services concept in the US in the mid-1980s. Created by SSON in 2011, this video charts revolution of the shared services and outsourcing industry. 0. While […] Shared services is a business model that allows resources to be leveraged across an organization, which results in lower costs with customer service levels that were agreed upon. It’s happening globally Wherever you are at in your shared services journey, you are in good company. 3 Robotic process automation For many years, organisations have adopted outsourced arrangements or shared services on-shore or off-shore in a bid to reduce costs, increase efficiencies and bolster capability across various corporate functions. Outsourcing and shared services are both part of organization redesign to give primacy to the efficiency of corporate functions. PDF | On Jan 1, 2013, MARCINIAK Róbert published Choice between Outsourcing and Shared Services | Find, read and cite all the research you need on ResearchGate Outsourcing vs Shared Services - how to make the right choice The rules governing Outsourcing are changing. It is not something, which is very new to the human resource (HR) fraternity. They are similar in concept. Shared Services Centers and Outsourcing model. Ephraim Schwartz’s June 5, 2006 InfoWorld column, "Reality Check," sets up a sparring match between somebody who represents the outsourcing industry and somebody who represents the shared services industry. However, with robotic process Outsourcing is no longer simply a matter of cost reduction and efficiency gains; outsourcing is now driving value, effectiveness and innovation. Managed Services vs Shared Services: Which to Use? Today, we see an ever-increasing interest from middle-market organizations (companies ranging in revenue size from $200M-$2B) to reduce their back office costs and improve productivity and performance. Continuity of Services: Shared services can promote ubiquity of programs, services and processes across a company. As a managed IT service provider, we help to streamline IT departments and increase overall efficiency for numerous companies. Enterprise Agility. decade, shared service models have undergone several rapid evolutionary cycles, changing focus away from captive operations and toward outsourcing and off-shoring. Choosing between outsourcing and shared services has significant implications for long-term corporate strategy. Technologies@Scale. Shared services are a form of outsourcing, Dressler stated that shared services and outsourcing have many characteristics in common (Dressler, 2007). Business Model Innovation. By. However, in the evolving world of shared services and outsourcing, will one become extinct? Shared Services and Outsourcing Advisory teams provide clients with the knowledge, data, technology and experience to help define strategies for their global business support functions. Search. I think both have their merits. 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