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Shared Services
KPMG provides consulting advice in the area of shared services. Shared services are parts of the value chain (business processes and services) that are remotely provided. They are delivered over private and secured public networks, provided by a separate entity (e.g. external contractor, own subsidiary or joint venture) and offered cross-border as well as within national boundaries.
The need for shared services has a number of business drivers:
Economic: Shared services often translate to lower costs (especially when outsourced) for an organization. They also result in outsourcing of non-standard activities in the organization. Falling technology costs have greatly contributed to lower cost of delivery of shared services.
Customer or market dictated: Need for shared services are felt when the organization needs to offer a high level of customer service such as 24/7 service, and where continuous service presence is critical. In such cases, shared services can ensure better and more standardized customer service, effective tracking of customer complaints/feedback, and better management of customer relationships.
Standardisation: Shared services become important for ensuring that best practices are implemented across the organization.
Several international organizations have already migrated some of their back-office functions to the shared services operating model, such as GE, Amazon.com, British Airways, American Express and several others.
The benefits for the organization are:
- Lower costs
- Better scalability of services and flexibility
- Improved decision support
- Greater clarity within the organization through simplified and standardized back-office processes.
KPMG will help you identify processes which can be offered as shared services, and help re-design the organizational processes and work-flows to achieve the business objectives of lower costs, better customer service and improved productivity. We will also take you through the migration path to a shared services business model.
KPMG can also help service organizations keen on providing shared services to client organizations. Our understanding of the critical success factors, business processes and the enabling technologies will help you in building the required capabilities to become a world-class shared services provider.
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