Shared Services Models

There are numerous models to consider when evaluating your shared services strategy. Essentially models are a combination of sourcing and location. The different sourcing options include captive (company employees), outsourced or a hybrid of those two options. Location options include on-shore, near shore and off-shore. On-shore means the location of the center is in the same country as the business operations. So, if a company is headquartered and conducts most business in the U.S. the center is in the U.S. Similarly, if a company is headquartered and does most business in China, the center is in China. The near shore option simply means the location of the center is near, the country where most business is conducted. In the U.S. example, a center in Mexico or Canada would be considered near-shore. Offshore locations are defined as a center that is located in another part of the world as in a U.S. company having a shared services in India or the Philippines. See the chart below for the different combinations that these options can create.

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