A good piece in Forbes is out today, looking at an area this news feed has been examining a little in recent days – the growth of shared service centres (SSCs). The article suggests they’re going to grow in importance and value over the next few years.
The principle is simple enough – they do what they say on the tin. A company sets up an SSC in a location to serve its international (or at least geographically disparate) operation, so you end up with people working out of, say, Portugal, running the HR services for colleagues in the US, Australia and wherever. If they’re owned by their only client these are referred to as captive companies.
The article identifies a number of drivers behind the growth in the sector: a tendency towards DIY as outsourcing gradually falls from favour (although we’ve carried enough stories with evidence of growth in that sector too to make this claim at least dubious) and the scope digital technology offers to put extended plans into place.
This one looks as though it’s an area that will be growing for a fair while yet.