A recent SunGard Insights study reveals disparities when comparing perceptions about treasury Shared Service Centre (SSC) levels and capabilities. According to the study, 40% of respondents whose businesses are serviced by the SSC felt that it was not meeting their Service Level Agreements (SLAs), while 3.4% of respondents working from within the SSC identified that this was a problem.
Additionally, 36.5% of the respondents whose businesses are supported by the SSC state that they are dissatisfied with service level results while only 19.7% of the respondents from within the SSC report the same perception.
The predominant underlying issues in these gaps are lack of communication, workflow and visibility, all of which can be mitigated through recent technology advancements such as online portals, workflow tools and sophisticated reporting functionality.
The study also reveals a shift in the drivers for migrating to an SSC. Companies are realising that they can derive more value from their SSC and operate smarter and more efficiently if they are able to standardize processes and improve on those processes with technology.
Compared to a similar SunGard study from 2010, the driver to operate more strategically by standardising operations grew from 11.8% in 2010 to 21.2% in 2013. For those companies with mature SSCs, when asked what they would do differently when setting up an SSC, 58.9% of respondents said they would standardize processes and 53.5% said they would implement technology.
“When a shared service center is created, all too often we see the center adopt some level of automation, but it tends to reside only within the core," says C.J. Wimley, COO, SunGard’s Corporate Liquidity business. "As a best practice, the entire enterprise needs to be linked together through a single, centralized platform. By creating dashboards, business process automation and enterprise wide collaboration companies can operate smarter and see a dramatic improvement in the effectiveness of a shared service centre.”