A shared service center ( SSC , English shared services center , also a single service center , SSC ) is a specially created unit in the structure of a large company or institution to which certain business processes of the entire organization are transferred (for example, accounting , human resources ). A common service center can be either a legally separate organization or a regular structural unit.
In fact, the transfer of a number of functions to a common service center is similar to outsourcing , when certain functions of the organization are transferred to third-party contractors, but in this case, the contractor is part of the organization and is entirely subordinate to its management. Most often, according to this scheme, centralized subdivisions of accounting and tax accounting are created , uniform structures for managing cash , procurement, information technology , marketing and advertising are formed, the functions of hiring personnel , personnel accounting , and payroll are grouped.
The main goals that are pursued when creating common service centers are to reduce operating costs , optimize staff, unify and standardize business processes, eliminate duplicate functions, and improve the quality of functions due to the specialization of labor.