Shared Services: A New Opportunity With Employer of Record

Shared services are one of the well-established business models widely used across various businesses. Initially started as a concept to support back-office functions such as payroll & accounting, the model has evolved significantly. Technology advancements in the information technology (IT) and telecommunication sectors are crucial in shaping the services as a robust service model.

Today, you must have seen that shared services are available for several business functions, like human resources (HR), finance, IT, personal training, and procurement. This service scope expansion is possible due to technological innovations, like the Internet of Things (IoT), Machine Learning (ML), Artificial Intelligence (AI), etc. As a result, communications and automation processes, which represent core aspects of the services, are easily streamlined using enterprise resource planning (ERP) systems and other integrated software solutions.

In this blog, we’ve explained new opportunities for shared services or shared service centers (SSCs) using the most economical employment model, i.e., employer of record (EOR). Also, you’ll learn about the advantages of choosing the right locations for your SSCs by giving India as an example. Before we dive into these two points, let’s briefly revisit the meaning and some key aspects of shared services to get a good perspective regarding the uniqueness of the business model.

Shared Services: Meanings and Key Aspects
Several industries ranging from manufacturing to e-commerce often rely on shared service providers for various reasons. Most back office or non-core business functions across sectors can be effectively streamlined using shared service centers. Here are the insights of key business functions primarily used for setting up SSCs.

shared service center

IT Services
IT shared service centers can effectively handle support services including helpdesk support, application development, network management, and cybersecurity & infrastructur