Director of Shared Service Center Operations Guide:
Shared Services & GBS

Selecting the right technology stack is no longer about buying the best ERP; it is about constructing an ecosystem that connects systems of record (SAP, Workday, Oracle) with systems of engagement. Here is a neutral evaluation of the current approaches.

1. The Platform Approach (ServiceNow, Salesforce)

• Concept: A single ‘layer of engagement’ that sits across the enterprise. All requests for HR, IT, and Finance go through one portal.

• Pros: Unified user experience; massive data visibility; easier to maintain one platform than ten.

• Cons: High licensing costs; can be ‘overkill’ for smaller SSCs; requires significant implementation time (9-18 months).

• Best For: Mature GBS organizations with >500 FTEs and multi-tower scope.

2. The Best-of-Breed Point Solutions

• Concept: Buying specific tools for specific problems (e.g., HighRadius for AR, Zendesk for ticketing, UiPath for RPA).

• Pros: Deep functionality in specific niches; faster time-to-value for that specific problem.

• Cons: Integration nightmare; data silos; user experience fragmentation (employees need 5 different logins).

• Best For: Smaller SSCs or single-function centers (e.g., just Finance Shared Services).

3. Process Mining & Intelligence (Celonis, Signavio)

• Concept: X-raying your systems to see how work actually flows.

• Role: This is not an operational tool but a diagnostic one. It is essential for the ‘Design’ and ‘Optimize’ phases.

• Critical Consideration: Do not buy these tools unless you have a team capable of interpreting the data. The tool finds the problem; it does not fix it.

4. Build vs. Buy Decision Framework

• Buy: If the process is standard (e.g., Invoice Processing, IT Helpdesk). The market has solved this. Do not reinvent the wheel.

• Build: If the process is your ‘secret sauce’ or highly specific to your industry vertical (e.g., specific claims processing for a niche insurance product). Use Low-Code/No-Code platforms (PowerApps, Mendix) to build custom apps on top of standard data.

Evaluation Checklist for 2025

When vetting vendors, ask these specific questions:

1. Integration: ‘Do you have native connectors to our specific ERP version, or will we need custom API development?’

2. AI/ML: ‘Is your AI proprietary or a wrapper around OpenAI? How is our data segregated?’

3. User Experience: ‘Show me the mobile interface for the end-user.’ (If it requires a VPN and desktop to approve an invoice, it will fail).

4. Total Cost of Ownership: ‘What are the implementation and maintenance costs relative to the license fees?’ (Often a 3:1 ratio).

FAQs

How long does a typical GBS transformation take to show ROI?

While a full transformation is a 2-3 year journey, you should target ‘quick wins’ that show ROI within 6-9 months. According to FTI Consulting, organizations typically achieve 30-50% cost reductions eventually, but the initial phase often involves investment. The ‘J-curve’ effect means costs might rise slightly in months 1-6 due to dual-running and implementation fees before dropping significantly as standardization and automation take hold. Do not promise instant savings; promise ‘funded transformation’ where early savings pay for later technology.

Should we automate first or standardize first?

Standardize first. Automating a broken or inconsistent process just makes you ‘fail faster.’ However, you don't need 100% standardization to start. Use the ‘Pareto Principle’: standardize the 80% of volume that fits the ‘Happy Path’ and automate that. Leave the 20% of complex exceptions for human handling. Process Mining tools can help identify which variants are ripe for standardization and which should be left alone.

How do we handle ‘Shadow IT’ and local teams refusing to let go of work?

Resistance usually stems from a lack of trust. Local teams fear that GBS will be slower or lower quality. Do not fight this with mandates alone. Use a ‘Show, Don’t Tell’ approach. Pilot the transfer with a friendly business unit. When you can demonstrate—with data—that GBS processed invoices 30% faster with higher accuracy, the resistance weakens. Additionally, offer ‘career pathing’ for local staff to join the GBS organization, turning detractors into participants.

What is the ideal ratio of staff to managers in a modern SSC?

The traditional 10:1 or 15:1 ratios are evolving. As you automate transactional work, the remaining work becomes more complex, requiring more support. In highly automated environments, ratios may drop to 8:1 because the manager is no longer just monitoring attendance but coaching on complex problem solving. Conversely, for purely transactional teams that are well-oiled, ratios can stretch to 20:1. Focus on ‘Span of Control’ based on process complexity, not a generic industry flat number.

How do we measure ‘Value’ beyond just cost savings?

You must link operational metrics to financial outcomes. Don't just report ‘DSO’ (Days Sales Outstanding); report ‘Working Capital Freed Up.’ Don't just report ‘Time to Hire’; report ‘Revenue Days Gained’ (by having a salesperson in seat faster). Collaborate with the CFO office to agree on the calculation logic for these value metrics. Once the CFO validates your math, the rest of the business will listen.

Is the ‘Lift and Shift’ model dead?

largely, yes. ‘Lift and Shift’ (moving a process exactly as-is to a lower-cost location) captures labor arbitrage but locks in inefficiency. The modern standard is ‘Lift, Transform, and Shift’ or ‘Fix and Shift.’ You must clean the data and streamline the process *during* the migration. Moving a bad process to a remote team creates a communication overhead that often negates the labor savings.