Introduction Of Global Share Service Centers
According to Bitner, Ostrom and Morgan, (2008) Global share service centers can be defined as a dedicated unit (including people, processes and technologies) and this centralized point of service is developed to improve business functions supported by IT and IT services. In modern era, cut throat competition and a slow global economic recovery create challenges for almost every size of companies in virtually every industry. Today’s market leaders and enterprises rethink about their existing operational models and emphasize on finding the ways to spend less and achieve more with fewer resources in order to support their strategic direction (Bitner, Ostrom and Morgan, 2008). By establishing global service centers, firms will be able to take advantage of innovation and technology as well as seamlessly connect, interact and respond to customers, consumers and suppliers across the business now and into the future in an effective manner. In dynamic changing environment, companies are seeking to reach the next level through bringing innovations and concentrating on what they do best-growing the business. In order to aggregate transactional and common activities, companies are focusing to establish globally integrated business services (GIBS) unit to promote their business activities effectively.
Differentiate between local and global shared service centers
According to Maglio, Srinivasan, Kreulen and Spohrer (2006) on the basis of the structure, governance, challenges, ROI objective, location and metrics, local and global business unit differentiate can be described effectively. At local or regional level, business unit controls over various activities such as headcount and budget etc. In addition, each function operated separately due to this sometime challenge is raised in implementing strategies like fragmentation and inefficiency. The motto of developing local business unit is to reduce cost. While on the other hand, global business service centers unit handled by leaders and they perform various activities including cross-functional, common activates, budget and other activities operated globally on an end-to-end basis (Maglio, Srinivasan, Kreulen and Spohrer, 2006). Apart from this, top down executive sponsorship and end-to-end process optimization service excellence are required in order to take several benefits such as better use of technology, improved data integration & visibility and extension of innovation across cross-functional and global services to enable better decision making at the workplace etc.
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Benefits of Global Shared Service Centers
As per Pal and Pantaleo (2005) global business services model is multifunctional and capable to manage end-to-end processes in an appropriate manner. Today, most of the retail organizations like Tesco and Adsa are concentrating towards implementation of a multifunctional approach to shared services and effective use of their resources to attain aim and objectives of the companies within stipulated time. In dynamic changing environment, multinational companies and large enterprise groups are concentrating to use of global share service as an operational model and for that they develop a physical entity acting as the in-house sourcing center to standard support to various business units and regions ef