Organizational Size and Operation Scope in Company of Using Shared Service Model

It is clear that the benefits of shared service model used by many international companies could be exploited only at a certain company size because the cost advantages are highly dependent on the economy of scale. According to SunGard global research from 2010 54% of companies with shared service centers have the annual gross turnover of a billion dollars or above. The reason for this is mainly the larger a company is, the greater the likelihood that use different enterprise level systems and non-standardized processes. After all, the model benefits not only be achieved through the utilization of large volumes, but removing the redundancies. In this research, 75% of companies had global presence and 89% of them already had or planned to set up a shared service center. The global function has also an advantage, because it can handle larger transaction volumes and reduced by the model of costly duplicate transaction processing efforts. The global service environment allows the introduction of global standards and uniform access to global information scattered in different subsidiaries. In this part of my research I am focusing on the Hungarian business service sector. I made a broad empirical research with online questionnaires to analyze the shared service centers in the Hungarian shared service market and to discover the organizational characteristics of them and their parent companies