Global Shared Services: A Growing Trend in Modern Business

In today’s fast-paced world, companies are constantly looking for ways to work smarter, reduce costs, and improve efficiency. One of the most effective strategies that many organizations are adopting is Global Shared Services. This approach has changed the way companies manage their operations by centralizing common business functions.

Whether it’s finance, human resources, IT support, or customer service, global shared services bring everything together under one roof to deliver better performance. Many business process outsourcing companies are now also offering shared service models to help businesses grow and stay competitive.

What is Global Shared Services?

Global Shared Services refers to a centralized system where multiple business units share the same support services, such as finance, accounting, HR, procurement, IT, and customer service. Instead of each department having its own separate team, all functions are managed by a single, unified team.

This model helps companies streamline processes, maintain consistency, and reduce costs by avoiding duplication of efforts. The concept is similar to business process outsourcing companies, but in shared services, the work is usually done in-house or by a specialized internal team located in one or multiple global hubs.

Why Are Businesses Moving Towards Global Shared Services?

The main reasons why companies are shifting to this model include:

• Cost Savings – Centralizing operations reduces overhead expenses.
• Consistency in Processes – One system ensures uniform procedures across the organization.
• Better Use of Technology – Shared services can invest in advanced tools that benefit the whole company.
• Focus on Core Activities – Business units can focus on their primary goals while shared services handle support functions.
• Global Collaboration – Teams can work together from different parts of the world, improving productivity.

How Global Shared Services Work

To understand how Global Shared Services operate, let’s take a simple example:

Imagine a company with offices in the USA, India, and the UK. Without shared services, each office might have its own accounting, HR, and IT teams. This results in duplication of work, higher costs, and inconsistent processes.

With global shared services, the company creates a single centralized team – maybe based in India – that handles accounting for all offices. Similarly, another team might manage HR for the entire organization. This setup reduces costs, improves accuracy, and allows easy communication between teams.

The Role of Business Process Outsourcing Companies in Shared Services

Many business process outsourcing companies are now offering global shared services solutions. These companies already have experience in managing large-scale operations and serving multiple clients across industries.

Outsourcing partners can handle specific functions like payroll, customer support, or IT services on behalf of an organization. For some businesses, it’s more cost-effective to hire an outsourcing company than to set up an internal shared service center.

Benefits of Global Shared Services

Here are some of the main benefits:

1. Lower Operational Costs

By eliminating duplicate teams and streamlining processes, businesses save money on staffing, training, and technology.

2. Higher Quality and Accuracy

Centralized teams follow standardized procedures, reducing errors and improving the quality of work.

3. Scalability

As companies grow, shared services can expand quickly without major structural changes.

4. Access to Expertise

Global teams often have specialists in various fields, ensuring high-quality work.

5. Better Data Management

With centralized systems, it’s easier to collect, analyze, and use data for decision-making.

Challenges in Implementing Global Shared Services

While the benefits are significant, there are also challenges:

• Change Management – Shifting from multiple local teams to one centralized team can face resistance.
• Communication Barriers – Different time zones and cultures may cause delays or misunderstandings.
• Initial Investment – Setting up a shared services center requires planning, technology, and training.
• Security Concerns – Centralizing sensitive data means companies must ensure strong cybersecurity measures.

Steps to Implement Global Shared Services Successfully

Identify Functions to Centralize – Decide which services (finance, HR, IT, etc.) are best suited for shared services.

Choose the Right Model – In-house shared services or partnering with a business process outsourcing company.

Invest in Technology – Use modern software and tools to connect teams across the globe.

Train Staff – Ensure employees understand new processes and are ready for the change.

Monitor and Improve – Regularly review performance and make improvements.

Future of Global Shared Services

The future looks promising. With advancements in AI, automation, and cloud computing, Global Shared Services will become even more efficient and cost-effective. Many companies will combine shared services with outsourcing to create a hybrid model that maximizes both flexibility and savings.

Business process outsourcing companies will continue to play a big role by offering ready-to-use infrastructure, skilled teams, and advanced technologies.

Conclusion

Global Shared Services is not just a trend – it’s becoming a standard way for businesses to operate. By centralizing support functions, companies can save costs, improve efficiency, and provide better services to customers. Whether set up internally or through business process outsourcing companies, the shared services model helps organizations focus on what they do best while experts handle the rest.