Organisations that continue to adopt Shared Services and Outsourcing are reaping the benefits of a lower cost base, improved productivity and a retained staff base that is focussed on delivering core business competencies.
Adoption of Shared Services and Outsourcing for enterprise back office functions
Advances and innovation in technology such as cloud computing, digital process automation and robotics are dramatically improving the standard of offerings from Shared Service and Outsource providers and therefore strengthening the business case for increased adoption. Scale and automation are improving service levels and lowering the cost to deliver with the customers gaining these benefits.
The improvements in the offerings means that the increased demands of the business and their end-users are more easily met by the delivery of high quality services and real-time digitised content.
Benefits outweigh the risks and concerns
Organisations that continue to adopt Shared Services and Outsourcing are reaping the benefits by lowering their cost base, improving productivity and ensuring that the retained staff base are focussed on the delivery of critical core business competencies.
On the other hand the firms that continue to resist will face increased competitive pressures to find other ways to lower costs, reduce time to market and deliver high quality digitised processes. The arguments against the change are often based on historically bad experiences with outsourcing and concerns over security and privacy.
Deloitte research finds that many service providers can quickly establish a level of service that is better quality and significantly more secure than the in-house capability offers.
Next week’s preview
In Part II of this topic, we will look at the business drivers for change in back office functions and how organisations transform their use of Shared Services and Outsourcing according to Deloitte research.
Did you miss any of the previous Deloitte Source Point blog posts? Read them here.