Apr 28, 2014
From the Shared Services and Outsourcing Institute
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.
Shared services, however, 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 moved to set up a SSC in China.
This issue of the China 360 newsletter examines 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 is provided on how to develop a strong business case.
Gary P. Nowak
Partner, Management Consulting KPMG China
Learn more about Gary Nowak and his perspective on shared services in China in this interview with HfS Research.