Shared services centres impact on organizational effectiveness

Abstract

Constantly changing and complex macroeconomic and microeconomic business environment, global hyper competition and fast information and communication development force organizations to gain competitive advantage andto look for opportunities to improve efficiency. Transfer of administrative functions, financial operations, Information Technology (IT), Human Resources (HR) and other business support services to different location, where organization can gain competitive advantage better, easier, cheaper and faster, is popular decision among international IT, financial and other companies. Such back-office or Shared Services Centre (SSC) establishment is one of the business internationalization form, which primary goal is to lead to improved organizational effectiveness. However, implementing SSC involves variety of changes and this affects organization in different ways. Therefore, not only the advantages of SSC implementation should be taken into account, but also peculiarities of implementation should be deeply evaluated to ensure the successful impact on organizational effectiveness.