The Shared Services Centers (SSCs) have always been seen as a way to quickly reduce costs, especially due to economies of scale. However, SSCs are becoming more involved and relevant in the organizations’ strategy. In line with this development, in today’s global economy, there is the challenge of meeting more dispersed and varied customer demands. This scenario encourages an increasingly recurrent process in companies which possess a Shared Services Center: the globalization of its centers.
A Global Shared Services Center (GSSC) is more than just providing services around the world. It is the integration of services on a global level, where, even with individual providers, the Center manages them as a single team. A GSSC is considered an independent business which usually offers end-to-end services, covering all stages of the processes, and is also characterized by its internationally standardized processes. In the GSSC, cost reduction is aligned with the consistency and quality of the offered services, so that the processes are not only standardized but also simplified and enriched with high internal visibility. In addition, the Global Centers are able to speed up the integration of purchases, which are extremely strategic activities for the business.
Therefore, a crucial point is the choice of the location of the Global Shared Services Center, once it is a decision that adds complexity to all globalization initiatives. Thus, it is an issue that should be carefully studied and not be neglected. One must weigh the benefits and gains against the risks related to workforce, infrastructure, costs and language of each region. It is noteworthy that different languages and cultures can influence the quality and standardization of services, which emphasizes the importance of this decision and also highlights the need for clear communication between the GSSC and the business units.