In the rapidly evolving landscape of business, navigating the dynamic forces of globalization is fostered by the integration of transformative technologies. As organizations strive to optimize costs without compromising effectiveness and efficiency, a compelling solution has emerged – the implementation of a shared services center. These centers have undergone a remarkable evolution, transcending their origins as cost-reduction delivery centers to become multifunctional value drivers through process innovation.
Businesses in industries like Retail, Manufacturing, to name a few, face a plethora of challenges and bottlenecks that follow in-house financial, accounting, and HR operations.
1. Training & Continuity of Resources:
As employees come and go, ensuring a consistent level of expertise and knowledge becomes a persistent struggle. Training new hires on complex processes can be time-consuming and resource-intensive. Additionally, the risk of losing critical institutional knowledge when employees leave can disrupt operations and hinder organizational performance.
2. Skilled Employees Pulled into Routine Transactional Activities:
Businesses without financial shared service centers face the predicament of balancing mundane transactional tasks with more intellectually stimulating work to leverage the full potential of their skilled workforce. These tasks, although necessary for day-to-day operations, are a missed opportunity as they divert skilled professionals from utilizing their expertise to tackle more strategic and value-added responsibilities. It not only hampers employee engagement and job satisfaction but also limits their potential to contribute to higher-level decision-making and problem-solving.
3. Subject Matter Experts are Underutilized:
SMEs possess specialized knowledge and skills that can greatly benefit the business. However, due to manual processes and limited automation, these experts often find themselves with spare capacity, resulting in lost opportunities to tap into their valuable insights. Moreover, leading to suboptimal outcomes, missed innovation, and a waste of valuable resources.
4. Scaling Up or Down Exhausts Time and Resources:
Expanding operations to accommodate business growth, is a time-consuming process that requires significant investments in resources, infrastructure, and manpower. On the other hand, scaling down, such as downsizing or restructuring, poses an even greater challenge. Reducing operational capacity and reallocating resources can be complex, lengthy, and disruptive, potentially hindering their competitiveness and agility.
5. Achieving Excellence Seems Distant and Farfetched:
Setting up robust processes from scratch typically requires a minimum of two years, involving process design, system implementation, and workforce training. Additionally, it takes approximately five years for these processes to mature and deliver consistent results. The extended time frame and significant financial commitments can impede businesses from becoming agile.
6. Limited Scope for Manpower and Cost Reduction:
Manual processes are often constraining and require a larger workforce to handle tasks that could otherwise be automated, leading to increased labour costs. Moreover, the scope for reducing manpower is limited since many processes rely on manual intervention and oversight. This limitation inhibits businesses from achieving optimal resource allocation and cost efficiency, which can impact their overall financial performance and competitiveness.
7. Cost Escalation with Annual Salary Revisions:
Manually calculating and implementing salary revisions for employees is extensively a labour-intensive and error-prone task when businesses lack accounting shared services. The complexity of managing salary adjustments, bonuses, benefits, and compliance with labour regulations can lead to increased administrative costs and potential discrepancies. These cost escalations can strain the financial resources of businesses, affecting profitability and diverting funds from more strategic initiatives.
8. Technology Comes with Capex Involvement:
Capital expenditure (Capex) requires investing in software, hardware, and infrastructure that adds to the financial burden of businesses. The upfront costs of purchasing and setting up the necessary technology can be significant, impacting the financial planning and budgeting process.
9. Infrastructure to be setup:
Infrastructure refers to the physical and technological components needed to support the smooth operation of processes. Building the necessary IT infrastructure, data storage systems, networking capabilities, and security measures can be complex and time-consuming. The challenges of infrastructure setup include selecting the right technologies, ensuring compatibility, managing implementation timelines, and maintaining data integrity.
By integrating an optimal combination of technology and expertise, MYND develops tailor-made tech-driven solutions with shared service centers that align with the unique requirements of each business. The aim of a financial shared service center is to enhance efficiency and provide value-addition deliverables to the overall system. Our approach to shared service centers includes the consolidation of specialized skills and knowledge into dedicated Centers of Excellence (COEs), which amplify the effectiveness of financial reporting and control activities. With our focus on establishing COEs, we provide a centralized hub that offers streamlined services, ensuring a comprehensive and efficient system. By continuously evolving in line with market and company demands, we maintain our ability to meet evolving needs and drive favorable business outcomes.
MYND provides Finance and accounting shared services, Human Resources, and Compliance Services that optimize your business:
- Economy and Efficiency: Centralization, Standardization, and consolidation to achieve cost savings by at least 20-30% in the mid to long term.
- Automation and Advanced Tech: Leveraging automation, robotics, and advanced technologies for enhanced efficiency.
- Accountability and SLAs: Establishing service level agreements (SLAs) for timely and accurate deliverables.
- Independence in Process Management: Empowering teams with autonomy in managing processes.
- Governance Mechanism: Implementing a robust governance structure for oversight and compliance.
- Resource Optimization: Leveraging existing resources, shared senior SME oversight, and infusion of fresh talent as needed.
- Cost Savings and Transformation: Significant cost savings in the mid to long term, transformed processes, and enhanced automation.
- Improved SLAs: Enhanced service level agreements resulting in improved performance and client satisfaction.
- Variable Commercial Model: Offering flexible pricing options based on transaction volumes or specific needs.
Our suite of tech-enabled solutions in shared service centers produces quantifiable improvements and outcomes, and propels businesses to new heights:
- PEARL: Tech-enabled Accounts Payable Tool
- MYNDAPX: SAAS-based Accounts Payable Automation Tool
- SpendX: End-to-end automated Petty Cash and Vendor Management system
- Ivap: Automated Payroll System
- ACT: Tech-enabled Compliance Solution
- ARISE: Tech-driven Accounts Receivable solution
- ASSURE: Digital Asset Management System
- Intelligent Document Processing (IDP)
- Natural Language Processing (NLP)
- e-Mail BOT
By leveraging cutting-edge technology and embracing the potential of Mobility, Analytics, and Cloud, MYND enables businesses to optimize their processes, enhance decision-making through data insights, and harness the flexibility and scalability of cloud-based solutions. This holistic approach ensures that companies can effectively leverage emerging technologies and stay ahead in an increasingly digital and interconnected business landscape.
