CFOs: Trends and best practices for shared services and outsourcing models

Increasingly, finance departments are transforming their operating models and finding success through global business services. In fact, according to Deloitte’s 2021 global shared services and outsourcing report, finance is among the top three functions performed in shared services centers across industries. More global business services’ functions are moving beyond the back office to include more specialized industry areas and creating an environment where finance departments can rapidly adopt new capabilities of their own.

More upstream capabilities for your finance department

Since 2019, global business services organizations have increased their footprint for procurement and customer service and call centers the most. However, they are continuing to move “upstream” to include specialized capabilities, such as automation, reporting, and process excellence.

According to the report, 58% have implemented reporting; 56% have implemented automation capabilities; and another 56% have implemented process excellence capabilities. They are also looking to continue to implement further capabilities, the highest of which is analytics at 44%, with 28% having already done so.

Another area global business services organizations are beginning to realize greater benefits from is through the implementation of robotic process automation (RPA). Now, 20% of organizations are embracing digital transformation and employing more coordinated, less siloed approaches to realize between a 20% and 40% savings—up from 9% in 2019.

Global business services organizations have also made it a priority to focus on user-centric designs and self-service capabilities to deliver better customer experience.

Investing in global business services and shared services capabilities

Process efficiency and standardization (88%) has surpassed cost reduction (84%) as a primary objective for investing in global business services and shared services centers. This differs from previous iterations of the report, where achieving speed was the top factor. Driving business value followed closely behind cost reduction, remaining an immediate and tangible benefit of establishing a shared services center.

More organizations have also adopted the digital agenda (54%). This may be bolstered by shifting workplace and workforce strategies. Since the COVID-19 pandemic, more hybrid delivery models—with a focus on developing virtual/remote work strategies and leveraging location-agnostic hiring—have become increasingly important. This is in part because organizations are increasingly emphasizing the development of strong culture, well-being, and flexible work practices in the fight for talent, with financials being table stakes. They are also looking to nontraditional talent models, the top three remaining to be contingent workforces, part-time employees, and remote work practices.

Key attributes of successful global business services organizations

More than 50% of organizations are currently achieving three or more objectives they sought out when investing in global business services and shared services centers. Of note, these successful global business organizations are:

• Adopting hybrid models: Incorporating both shared services and outsourcing models, with about 65% including outsourcers in their delivery model
• Embracing digital transformation as a strategic agenda: 72% have implemented robotic process automation, 55% have single-instance ERP, and 53% have AWS or cloud
• Purposefully incorporating diversity into their leadership roles: More than 80% indicated a third of the leadership roles belong to minorities and women
• Implementing new approaches to talent: 67% are building continuous improvement and innovation into their talent programs, 59% are leveraging contingent workers

Overall, what’s clear is that shared services centers and global business services models are prioritizing areas across work, workforce, and workplace to drive impact and value. As they seek to provide nimble and value-added services, a better customer experience, and high-impact business outcomes, finance departments will have more fuel for developing operating models that increase efficiency, reduce costs, and drive greater business value.