The New Era of Shared Service Centre Benefits: From Cost Cutting to Strategic Value

For years, shared service centres (SSCs) were framed as a cost efficiency strategy. Companies typically opted to outsource services, such as finance and accounting, to SSCs as a means to centralise and streamline their operations and, in doing so, reduce overheads — in some cases by up to 50%. 

But is cost efficiency the only reason to make the move to an SSC? As new technologies reduce outsourcing friction and open up new collaborative opportunities, perspectives are shifting, with SSCs becoming drivers of strategic value and growth for their parent companies rather than simple cost reduction measures. 

Research reflects this shift. In 2020, a Deloitte study revealed that 70% of organisations cited cost cutting as a reason for SSC outsourcing, but that number had dropped to 34% in 2024. During that time, new SSC drivers emerged, with a Deloitte study from 2023 citing “standardization of processes”, “developing capabilities”, “reducing risk”, “digital agenda acceleration,” and “access to talent pools” as priority reasons to make the move.   

In this post, we’re going to explore that evolution. We’ll discuss the foundational reasons why companies choose to outsource to SSCs and how they may leverage technology to unlock greater value once the SSC is up and running. 

How Do SSCs Save Money?

At their core, shared service centres deliver cost savings by consolidating internal services, such as accounts payable, intercompany transactions, and month-end close, into a centralised model. 

Here’s a closer look at the core shared service centre benefits. 

Centralisation of functions: SSCs consolidate core accounting functions, such as accounts payable, receivable, and payroll, into a single location. This reduces administrative overheads, lowers facility and management costs, and improves process efficiency. Many organisations also shift these functions to lower-cost regions to further reduce labour expenses.

Economies of scale: By bringing operations under one roof, SSCs benefit from shared infrastructure and bulk purchasing — from software licences to IT support. This enables more efficient use of resources and reduces per-unit costs across teams.

Standardisation of processes: Centralisation makes it easier to enforce consistent accounting practices across departments and geographies. This leads to greater accuracy, fewer errors, stronger financial controls, and reduced compliance risk. Many SSCs also introduce layers of internal controls to build robust oversight into the finance function.

Access to skilled professionals: SSCs often operate at a scale that enables investment in talent, offering training, career progression, and competitive pay to attract high-performing accountants. This can improve output quality while reducing turnover and onboarding costs. That said, some SSCs face higher staff churn, as employees may feel less connected to the broader organisation.

Improved technology utilisation: SSCs are well positioned to adopt cloud-based finance tools and automation solutions, such as RPA and close management software like FloQast. These technologies accelerate cycle times, reduce manual effort, and enable teams to focus on higher-value work, ultimately driving greater efficiency and performance.

Technology as a Catalyst for Value

The budget-friendly benefits of SSCs are clear, but the value that the transition provides doesn’t have to end at cost cutting. 

After centralising and standardising basic finance functions, companies can increase the value that their SSC provides by leveraging tech innovation, specifically, the implementation of shared service centre software that unlocks new efficiencies. 

More specifically, accounting software like FloQast can serve as a catalyst for SSC value by increasing the impact of the conventional benefits outlined above, and by helping finance teams harness added benefits. 

The value-adding benefits of the FloQast platform for SSCs include: 

• Month-end: FloQast can add global visibility and accountability to the month-end close, while streamlining workflows with cutting-edge automation and collaboration tools. 
• Standardised workflows: FloQast ensures that teams working in the SSC and head office are aligned across processes, documentation, and technology. That alignment includes structured checklists with role-based tasks and sign-offs, and automated email reminders. 
• Audit readiness: FloQast strengthens audit readiness across the finance department and the wider company, via a centralised audit trail. External audit teams can be given secure, third-party access to audit documents in order to remove friction and speed up the process. 
• System integration: FloQast integrates seamlessly with numerous ERP systems, including Oracle, QuickBooks, Sage, and Microsoft Dynamics, along with collaboration and communication tools like Slack, Teams, and Dropbox. That flexibility makes it easy to embed FloQast within an SSC’s tech ecosystem without risk of disruption.
• AI-powered automation: FloQast’s AI automation features reduce or even eliminate the time-consuming manual work associated with a range of critical business processes, including month-end variance analysis and reconciliations. That automation can free up SSC employees for more strategic, value-adding work, such as data analysis and forecasting. 

It’s worth remembering that the strategic value of an SSC may emerge over time and be contingent on the parent company successfully implementing the fundamentals of its outsourcing project. Regardless, the value-adding effects of aligned SSC software can compound, ultimately positioning the SSC to take advantage of new opportunities over the long term. 

Unlock SSC Potential with FloQast

Handled correctly, the transition to an SSC can become an opportunity to uncover efficiencies and drive long-term operational excellence.

That potential depends on effective ongoing management and the parent company’s ability to leverage technology solutions. The process should include the adoption of automated accounting and compliance tools, particularly AI, to streamline workflows across the SSC and HQ.

With that in mind, if you’re just starting your SSC journey, FloQast is ready to support you with decades of real-world industry expertise. Find out about how we can help you achieve your outsourcing goals today.

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