Organizations with widely distributed operations require shared services centers to centralize and standardize the way they do business, but global business issues can complicate the transition and reduce the value that the shared services center can deliver to the organization.

The most common challenge is meeting rapidly changing local statutory requirements. While regulations pertaining to where transactions are processed or where physical documents must be stored are continually evolving, these issues must be addressed on a country-by-country basis. Local tax laws are the primary determinant here, and can make compliance difficult.

The human factor should also be considered. Language and cultural factors can increase the cost and complexity of rolling out a shared services center. Will the organization be able to find and retain the right type of staff to run the services center? In some regions, geography plays an important role. Severe weather incidents or lack of infrastructure must be planned for, from both a logistical and human perspective. In some areas, political instability or personal security concerns add risk and complexity to shared services center.

Organizations dealing with global complexity can look to other multi-national corporations for guidance on how to successfully manage these challenges. Look for solutions that have built-in support for global business requirements, such as SAP systems, to mitigate some of the risk. It is important for businesses to start witha solid foundation on which they can build solutions for overcoming the problems of global complexity.