Does it make sense to consider setting up a shared service center (SSC) in China without a robust business case? Often the business case does not appear compelling; initially the shared service center may result in higher costs rather than delivering immediate cost savings.
However, shared services can provide a multitude of strategic benefits over the long-term, which can outweigh short-term costs. Many companies, including KPMG, have indeed reached this conclusion, and have moved to setup an SSC in China. This month’s China 360 will examine the value proposition of SSCs, as well as practical considerations that should be included when assessing the merits of an SSC in China. In addition, insight will be provided on how to develop a strong business case.