Using An In-House Or Outsourced Service Center

The decision about whether to use in-house or outsourced service centers is one that each company must make for itself. Some organizations want to control the processes while others are happy to outsource part or all of their transactional business services. Some organizations do not choose one model or the other exclusively, instead using a "hybrid" model that provides the desired combination of functionality and service.

Organizations must identify which tasks should be handled by the shared services center and which tasks should continue to be handled by others in the organization. In general, organizations tend to use outsourced shared services centers for simple tasks and save more complex tasks for in house service centers or other experts. Exactly where the organization divides these tasks can differ significantly based on the maturity and sophistication of the organization and the comfort level the organization has with shared services centers.

In all cases, it is important for organizations to look at both in-house or outsourced shared services centers as they would a vendor. Can the vendor deliver according to the organization's specific service expectations? Organizations that have a solid understanding of business requirements where the business is going in the future will be able to create a roadmap for global process optimization that will enable them to determine the optimal shared services center structure for their needs. It is critical that organizations have a means of analyzing the service levels. In particular, organizations should establish key performance indicators and real-time metrics to be able to slice-and-dice specific aspects of the process to allow for continuous improvement.