Why PSOs are using ERP to leverage the benefits of shared service centers
Shared services within professional service organizations (PSOs) have become increasingly popular in recent years. With the rise of globalization, businesses now have access to global business centers that provide shared services across multiple countries and regions. Shared services offer many benefits to PSOs, including cost savings, increased efficiency, and improved customer service. This blog post will discuss the key benefits of shared services for PSOs. We will also explore how organizations can take advantage of shared services to improve their operations and better serve their customers.
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The difference between SSC and GBS
What is the difference between shared service centers and global business services? Shared service centers (SSC) are typically run within a company to provide professional services to other departments within the organization. The primary purpose of SSCs is to streamline internal processes, reduce costs, and improve customer service. Global Business Services (GBS) are a subset of SSCs, but with a more global focus, providing professional services to an international customer base. GBSs can offer a wider range of solutions to clients while also offering cost efficiency.
The challenges
Although PSOs have seen some success utilizing shared services, there are still some common issues to be aware of. Firstly, when introducing a shared service center, existing internal processes need to be evaluated to identify how those processes can be integrated with the new system. Secondly, it is important to be aware that with the cost efficiencies brought by the introduction of a shared services model, there is likely to be a need for investment in technology and training for staff. Finally, transitioning to a shared services model also often requires considerable amounts of organizational change management, which can take time and effort. Despite these potential issues, PSOs can reap significant rewards from adopting a shared services model when implemented correctly.
The drivers
What drives businesses to use shared service centers and ERP systems within their PSO? Cost efficiency is a significant factor. PSOs often need to find ways to reduce costs, either for their own operations or for the services they provide clients. By implementing a shared services center, professional services firms can reduce operational costs associated with manual processes and increase cost efficiency by reducing the number of full-time employees required to manage such operations. Additionally, the time savings achieved from automated processes help free up resources that can be used elsewhere, helping professional services organizations provide more value for their clients. The cost savings and time savings associated with implementing a shared services model can create significant value for PSOs.
The benefits of shared service centers
- Cost reduction
PSOs can reduce overall costs when they use shared service centers or global business centers. Organizations can achieve greater cost efficiency by leveraging the same resources and processes across multiple functions. This cost reduction can be in the form of staffing costs, technology investments, and facility expenses. Additionally, by utilizing economies of scale and avoiding duplicative work, PSOs can benefit from greater cost efficiencies. By reducing costs, firms are then better able to compete in the market.
- Improved quality
PSOs can improve the quality of their services when they use shared service centers. This is because these systems allow them to reduce duplication and standardize processes, which leads to more consistent, higher-quality work. These centers can help to streamline operations, reduce overhead costs, and help to eliminate waste. By using a single solution to manage many processes instead of having separate teams manage them individually, costs associated with labor are reduced — time saved by using shared services results in increased cost efficiency. Organizations save money on labor, materials, and other related costs when tasks are completed more quickly and efficiently.
- Increased efficiency
Clustering similar resources that could serve multiple organizational areas in one place increases operating efficiency, maximizes productivity, and improves service levels. Enterprise Resource Planning (ERP) is a technology-based platform or system used to coordinate the activities of the different departments within an organization, making sure they all stay aligned with the overall strategic goals. Using ERP to assist with shared services allows for cost efficiency and also provides many opportunities for professional services teams in terms of organizing workflows, resource management, and customer service delivery. By leveraging shared services within PSOs, tasks can be shared across departments while keeping up with demand, as well as generating cost savings through process automation, thereby improving the overall effectiveness and efficiency of the organization's operations.
- Enhanced customer service
Enhanced customer service through shared services is one of the primary benefits professional service organizations can gain. By leveraging the power of shared resources, organizations can improve the quality and speed of their customer service. With increased efficiency, customers can be provided with quick and reliable answers to their inquiries. Moreover, cost efficiency can be further achieved by reducing the cost associated with staffing and training new personnel. This ultimately allows PSOs to offer competitive prices without compromising on quality. Through automation and technology, firms can also streamline their operations and reduce time spent on manual processes. Additionally, shared services also enable organizations to transfer knowledge, skills, and expertise from one team to another, resulting in higher levels of expertise and better workflows.
- Greater flexibility
Organizations gain flexibility when they use shared services as part of their professional service operations. Shared services can provide cost efficiency and scalability, allowing organizations to adapt quickly to changing customer needs. There is also less reliance on outside vendors, which can reduce costs in the long term. In addition, shared services can allow organizations to provide specialized, tailored solutions to customers while maintaining cost efficiency.
How can Unit4 help PSOs leverage technology in shared service centers?
Unit4 provides a suite of solutions that are tailored specifically for professional services and which provide opportunities for cost efficiency. Our ERP, Financial Planning and Analysis (FP&A), and Human Capital Management (HCM) applications allow companies to manage their core processes, including billing and invoicing, resource management, and employee engagement. The solutions also provide detailed analytics and insights, enabling businesses to better monitor their performance and make informed decisions. Our integrated solutions provide real-time visibility into costs, enabling better cost control and improving cost efficiency. Through these solutions, PSOs can optimize their processes and maximize their resources to increase profitability. By leveraging the power of data, Unit4's solutions allow businesses to increase efficiencies within their shared service centers and reduce costs for a more sustainable business model.
