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SSC

Shared Services Center

A shared services center consolidates internal functions such as IT, finance, or HR into a single internal unit serving the whole organization.

How it works in practice

Unlike outsourcing, the work stays inside the company, but it is centralized rather than duplicated in every business unit. Groups usually create one to standardize processes and cut duplicated headcount, often in a lower-cost location.

When it fits

  • →Multi-entity groups duplicating the same functions
  • →Standardizable, high-volume back-office processes
  • →You want cost reduction without losing internal control

When it does not

  • →Single-entity companies with one of each function already
  • →Processes that genuinely differ by business unit
  • →Cultures where business units will not accept a shared standard

What it costs

Savings come from consolidation and location, typically after a setup period of a year or more before the model pays back.

Frequently asked questions

SSC or BPO?

An SSC keeps the work and the knowledge inside the company. BPO hands both to a vendor. Many groups run an SSC first and outsource only the most standardized parts afterward.

How long until it pays back?

Realistically 12 to 24 months, because the transition period runs two ways of working in parallel.

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