Shared Service Centres

Question 1

SSC’s

Answer 1

Existing business functions are concentrated in new, semi-autonomous business unit, designed to promote efficiency, value generation, cost savings & improved internal services (Bergeron, 2003)

Question 2

Rationale - Why? (4)

Answer 2

• Focus on core competencies
• Standardisation of procedures
• Avoids duplication
• Focused investment in resources to provide cutting edge business support

Question 3

Cost? (4)

Answer 3

• How should SSC charge for its services?
• Transfer pricing issues
• Identification of appropriate costing & pricing methods is of paramount importance
• Evaluate SSC performance

Question 4

Finance become SSC? (3)

Answer 4

• Repetitive & routine procedures
• Lead to de-skilling
• Lack of training for new accountants (grads?)

Question 5

Management Accounting become SSC? (3/4)

Answer 5

• SSC creation results in org. change > change in mngmt acc.
• New responsibilities > developing new PM’s & KPI’s, post-project evaluatin & monitoring
• Mngmt acc. that remain in division freed of tedious transactions processing, more time to enhance role of mngmt acc. function
  > Under pressure to justify worth