Outsource or take it in-house?

THE push towards greater productivity, costs reduction and visible success of in-house shared services is fast persuading company management teams to consider shared service centres (SSC) and outsourcing as viable options for business transformation.

While there is no magic pill for each of these models, experts say SSCs can fuel efficient growth and improve compliance and controls for companies.

Interestingly, saving costs has dropped in importance in relative terms. "This is because setting up a shared service centre involves upfront investment which takes time to break even and show visible benefits such as return on investment," said Maheshwar Venkataram, partner and business services transformation practice leader at PwC Consulting Singapore.