Why PSOs use ERP to reap the benefits of shared service centers


Shared services within service organizations (PSOs) have become increasingly popular in recent years. With increasing globalization, companies now have access to global business centers that provide shared services across multiple countries and regions. Shared services offer many benefits for PSOs, including cost savings, increased efficiency and improved customer service. In this blog post, we 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.

The difference between SSC and GBS

What is the difference between Shared Service Centers and Global Business Services? Shared Service Centers (SSC) are usually operated within a company to provide professional services to other departments within the organization. The main 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 client base. GBSs can offer a broader range of solutions to their clients while providing cost efficiencies.

The challenges

Although PSOs have had some success in utilizing shared services, there are still some issues to consider. First, when implementing a shared service center, existing internal processes must be evaluated to determine how these processes can be integrated into the new system. Secondly, it is important to realize that implementing a shared services model will likely require investment in technology and employee training due to the cost savings involved. Finally, moving to a shared services model often requires a significant amount of organizational change management, which can take time and effort. Despite these potential issues, PSOs can reap significant benefits from adopting a shared services model if implemented correctly.

The drivers

What drives companies to use shared service centers and ERP systems within their PSO? Cost efficiency is an important factor. PSOs often need to find ways to reduce costs, whether for their own operations or for the services they provide to their customers. By implementing a shared service center, service organizations can reduce operational costs associated with manual processes and increase cost efficiencies by reducing the number of full-time employees required to manage such operations. In addition, the time savings achieved through automated processes free up resources that can be used elsewhere, allowing service companies to provide greater value to their customers. The cost and time savings associated with implementing a shared services model can create significant value for PSOs.

The advantages of shared service centers

Cost reduction


PSOs can reduce overall costs by using Shared Service Centers or Global Business Centers. Companies can achieve greater cost efficiencies by using the same resources and processes for multiple functions. This cost reduction can come in the form of personnel costs, technology investments and building costs. In addition, PSOs can benefit from greater cost efficiencies by leveraging economies of scale and avoiding duplication. By reducing costs, companies are then better able to compete in the marketplace.

Improved quality

PSOs can improve the quality of their services when they use shared service centers. This is because these systems allow them to avoid duplication of work and standardize processes, resulting in more consistent and higher quality work. These centers can help streamline operations, reduce overhead costs and eliminate waste. By using a single solution to manage many processes, rather than having separate teams manage them individually, the costs associated with the work are reduced - the time saved by using shared services leads to greater cost efficiencies. Companies save money on labor, materials and other associated costs when tasks are completed faster and more efficiently.

Increased efficiency

Pooling similar resources that could serve multiple organizational areas in one place increases operational efficiency, maximizes productivity and improves service quality. Enterprise Resource Planning (ERP) is a technology-based platform or system used to coordinate the activities of different departments within an organization to ensure they are all aligned to overall strategic goals. Using ERP to support shared services enables cost efficiencies and also provides many opportunities for professional services teams in terms of organizing workflows, managing resources and delivering services to customers. By utilizing shared services within PSOs, tasks can be shared across departments while keeping up with demand and achieving cost savings through process automation, improving the overall effectiveness and efficiency of company operations.

Improved customer service through shared services is one of the most important benefits that service organizations can achieve. By utilizing shared resources, companies can improve the quality and speed of their customer service. Increased efficiency means that customers receive fast and reliable responses to their queries. In addition, cost efficiency can be further increased by reducing the cost of hiring and training new staff. This allows PSOs to offer competitive prices without compromising on quality. Through automation and technology, companies can also streamline their operations and reduce the time spent on manual processes. In addition, shared services enable the transfer of knowledge, skills and expertise from one team to another, resulting in higher levels of expertise and better workflows.

Greater flexibility

Companies gain flexibility when they use shared services as part of their professional services operations. Shared services offer cost efficiency and scalability and allow companies to adapt quickly to changing customer needs. They are also less dependent on external providers, which can reduce costs in the long term. In addition, shared services allow companies to offer specialized, customized solutions for customers while maintaining cost efficiency.


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