shared services operating models

Would like to hear your thoughts / comments.

[email protected] yashgoyal26 @yashgoyal26

FINANCE SHARED SERVICES

OPERATING MODELS

Multiple Operating Models with merits and demerits


MULTIPLE OPERATING MODELS TO EXPLORE AND WE NEED TO CHOOSE

THE RIGHT ONE

COMPANY CAPTIVE MODEL


A model where organization makes strategic decision to create its presence in the lower cost location and conduct work there as a part of its own operations. Organization is able to retain full control and mitigate respective risks associated with intellectual property and other sensitive business information.


CAPTIVE MODEL MERITS AND DEMERITS

Time to Market Initial Investment

Time, efforts and expertise

IP Protection Perceived Low Cost

Internal Control

OUTSOURCED MODEL


2

Third-party outsourcing is classic client-vendor relationship governed by contractual obligations and service level agreements. It is mostly driven by tactical reasons such as short-term cost savings and staffing flexibility. Non-core or non-critical activities are typical candidates for outsourcing.


OUTSOURCED MODEL MERITS AND DEMERITS

Change Management

Relationship Management

Time, efforts and expertise

Accountability Cost efficiency

HYBRID MODEL


3

Hybrid Operating Model is a mix of both Shared services Center and Outsourcing For a long term these two models had been competitors of each other because companies had to choose between them. Nowadays there are several solutions that allow combining the benefits of these traditional models. These new solutions are the hybrid models


HYBRID MODEL MERITS AND DEMERITS

Change Management

Management Complexities

Combined expertise Accountability

Time to Market

Better Control

BOT MODEL


4

BOT stands for BUILD, OPERATE AND TRANSFER In case of BOT (Build-Operate-Transfer) the services are generally outsourced to a third party but after in advance determined time the service will be bought back and operate in a captive center forward.


BOT MODEL MERITS AND DEMERITS

Change Management

Less Cost efficient

Combined expertise

More Control

Time to Market

Option to move In-house

Management Complexities

Transition Risk

MANAGED SERVICES MODEL


5

Managed Services model is a model where third party provider takes over all or part of Operations Management Managed services is the practice of outsourcing day-to-day management responsibilities and functions as a strategic method for improving operations and cutting expenses.


MANAGED SERVICES MODEL MERITS AND DEMERITS

Additional Governance

Time and effort

Adequate Control

Comparative speed to Market

Relationship Management

Low Operational risk



FINANCE SHARED SERVICES

OPERATING MODELS



Thank You !

Presented by

Yash Goyal

shared services operating models

Business