Large, complex organizations are being transformed for the better thanks to efforts being made to streamline the activities of back office functions such as finance, human resources, procurement and facilities management. Successful ‘business transformation’ cannot only make an organization fitter and more competitive, but can also substantially reduce cost.

There are several ways in which a company can go about organizational transformation to reduce costs and provide greater value. Under the Shared Services model, a company consolidates the activities of several functional departments (HR, Finance and so on) across divisions in order to deliver services that are more efficient and more effective though common, streamlined processes. As a result, shared services provide better services since activities are no longer duplicated and processes are more consistent.

Under the Shared Services mode, these activities run like a business, delivering services to internal customers at a cost, quality and timeliness that is competitive with alternatives. As a result, labor costs can be reduced by up to 40% and overall costs (by leveraging through economies of scale) can diminish up to 50%.

Contact Borderless and draw on our unique, unparalleled global network of business transformation professionals and first-rate search skills to find and attract talented executives to lead your shared services or sourcing strategy efforts.

Borderless is a founding member of HROA, the global association for HR Transformation at www.hroassociation.com