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Shared Service Center

Shared Service Center

Shared Service Center (SSC) is a specially created business unit within a company that consolidates administrative and management functions, such as:

  • Accounting,
  • HR,
  • Procurement,
  • Contract work,
  • IT.

The key idea of the SSC is to optimize the work of the back office and increase the level of professionalism of the tasks performed. Once your SSC starts working, experts in their field will perform the tasks.

The world practice dates back to the 80s of last century while in Russia the first SSCs have begun to open only in 2000s.

The basic idea of centralization is reduction of expenses. The next stage in the development of the SSC is the business based on it. Thanks to outsourcing services, it is possible not only to reduce your own costs, but also to earn money.

Among estimated SSC parameters, we can particularly note the average speed of processing of a certain type of document from the moment of its scanning. Thanks to high speed the positive result and economy is reached.

Usually methodology of introduction of SSC includes 5 basic stages:

  1. Analysis.
  2. Techno-economic feasibility study.
  3. Planning.
  4. Migration.
  5. Optimization.

It is not important, whether you have just begun to think about the withdrawal of back office functions, or you are at one of the intermediate stages. May be you already have a fairly mature common service center? Our team is ready to be involved at any stage of formation of your SSC.

In addition to our head office in Moscow, we have branches in the Moscow region, St. Petersburg, Saratov, Perm, and Prague. Our team has specialists in a wide range of industries: retail, oil and gas, mining and others. This allows us to take on really complex and territorially distributed projects.

If you are standing at the beginning of your journey, we will conduct a comprehensive analysis of your company’s business processes. At the end of it, you will receive a list of functions recommended for transfer to the SSC.

We will perform all economic calculations “as is” and “to be”. At the stage of the feasibility study we will provide reasonable conclusions about the payback of the project. We would like to notice that it is not always advisable for companies to build their own SSC – in some cases, we recommend to transfer a number of functions to the existing one.

A popular service at this stage is to conduct a study on the geographical location of your center.

To perform this task, we use a three-factor model:

  1. The specifics of your company (the need for the SSC to be close to the headquarters and branches, the need for knowledge of foreign languages, time zones with which the SSC should interact).
  2. Regional assessment (population size, infrastructure development, cost of living, real estate cost, education level, number of graduates of specialized universities, lack of competitive SSCs, investment climate).
  3. Workforce assessment (quality and availability of labor force, average monthly salary of employees of necessary specialties).

In our experience, the transfer of functions to the SSC takes from 3 to 12 months, depending on the maturity of the company. At the planning stage, we provide you with a project roadmap and all the necessary details. For example, during the project, our specialists can consult on tax issues.

One of the most important stages in the development of the SSC is the implementation of a unified electronic document management system in your company. It should be integrated with all accounting systems where accounting and transactions are recorded and reflected. Together with electronic archive it automates all processes of the administrative document management connected with a life cycle of the information and the organizational-administrative documentation.

To solve this problem we use technologies of streaming scanning, optical character recognition, barcoding and backup copying between branches.

Together with the integration of an electronic signature in the company begins the creation of a legally significant document flow. Our employees have an extensive knowledge base in this area and monitor all legal trends.

Our team has already completed projects for centralizing functions in the following organizations:

  • Nornickel
  • Megafon
  • TNK-BP
  • Alpha Strakhovaniye
  • Zurich
  • KazMunayGas
  • Metalloinvest.

If you already have a common service center, we can analyze its maturity. Our team has the great experience of turning an existing service center into a competitive outsourcing market participant.