{"id":4414,"date":"2021-09-17T18:13:00","date_gmt":"2021-09-17T18:13:00","guid":{"rendered":"https:\/\/www.peeriosity.com\/shared-services\/articles\/?p=4414"},"modified":"2021-11-24T22:40:28","modified_gmt":"2021-11-24T22:40:28","slug":"shared-services-delivery-outsourced-or-captive","status":"publish","type":"post","link":"https:\/\/www.peeriosity.com\/shared-services\/articles\/2021\/09\/shared-services-delivery-outsourced-or-captive\/","title":{"rendered":"Shared Services Delivery \u2013 Outsourced or Captive?"},"content":{"rendered":"\r\n

Introduction<\/strong><\/p>\r\n\r\n\r\n\r\n

Outsourcing processes that are delivered by Shared Services is important to consider as external service providers continue to improve the quality of their services.\u00a0 It is also important that Shared Services leaders develop a strategy related to outsourcing so that they have an informed understanding of how outsourcing can be designed to fit with an overall delivery strategy.\u00a0 And, because the decision to pursue an outsourcing strategy is often made by senior management without directly including Shared Services leaders, having a defined strategy that is developed by Shared Services leadership<\/a> with review by senior management will go a long way towards ensuring the evaluation for how to best source services is completed by those who best understand process design and delivery alternatives.<\/p>\r\n\r\n\r\n\r\n

If you have attended an external conference on the topic of Shared Services or Global Business Services, you could easily get the impression that the performance leaders have all outsourced extensively, with many others who will soon make the decision to do so.\u00a0 With Business Process Outsourcing a multi-billion-dollar industry that largely funds large-scale conferences, it\u2019s not a surprise that the BPO industry<\/a> sets the agenda and tone of conference discussions.\u00a0 While many companies have achieved success with large-scale outsourcing, the predominant model is to maintain process ownership with captive processes that include selective outsourcing.<\/p>\r\n\r\n\r\n\r\n

iPollingTM<\/sup> Results Review<\/strong><\/p>\r\n\r\n\r\n\r\n

Peeriosity\u2019s<\/a> iPollingTM<\/sup> was used to learn more about Peeriosity member companies\u2019 strategy for outsourcing, with insight into where delivery resources are located.\u00a0 The results suggest that pure captive exceeds pure outsourcing by a factor of 5:1, with 6% reporting their primary delivery is via outsourcing or large-scale BPO and 29% indicating their primary delivery is via resources that are captive.\u00a0 The most prevalent model used by Peeriosity member companies at 59% is the use of captive with selective outsourcing.\u00a0 Here are the details:<\/p>\r\n\r\n\r\n\r\n

\"poll<\/figure>\r\n\r\n\r\n\r\n

With regards to the question of the location of resources, all regions of the globe are covered, since the primary model for Global Shared Services delivery is to organize regionally with some using more of a global model where work activities are largely centralized in a single location.\u00a0 Given the prevalence of this design, it\u2019s not surprising that 24% selected \u201cmultiple regions\u201d as the best response.\u00a0 For those that are more significantly located in a specific region, 35% have a majority of resources in North America (USA and Canada), 18% have a majority of resources in India, 12% have a majority of resources in Eastern Europe, and 12% have the majority of resources in other Asia-Pacific locations excluding China.<\/p>\r\n\r\n\r\n\r\n

\"poll<\/figure>\r\n\r\n\r\n\r\n

Here are some of the comments from members:<\/p>\r\n\r\n\r\n\r\n