Finance Shared Service Industry In India
Shared Services Model
Large companies worldwide operating across various verticals such as IT, banking and insurance are increasingly adopting shared service model. An effective shared services model blends the service quality of a decentralized system and efficiency of a centralized environment.
Today the pressure to reduce costs while improving processes remains a top priority for a number of companies. In this situation, outsourcing may not be the right option because of number of reasons like, regulatory environment, availability of talent pool, criticality, lack of cost justification or competing business priorities. This system has lead to the innovative shared services model where cost efficiency of outsourcing can be achieved while keeping the tight control on confidentiality of critical matters.
When it comes to choosing the right destination for shared service centers, India seems to be a preferred location despite all cultural and infrastructural constraints. India has the largest number of shared services centers in the world.
Talent Distribution in India
Choosing the right location for shared services centers is a strategic choice for the companies. Companies consider factors like infrastructure, cost efficiency, talent availability and conduciveness on business environment. As per a research by MANCER Consulting services, Delhi NCR has emerged as new destination for Finance Shared services for top Global firms leaving Bangalore behind at second place. The MANCER research also states that tier 2 and tier 3 cities like Jaipur, Kochi and Coimbatore, are emerging as new preferred destinations for shared services centers. Increasing cost of infrastructure and talent in metro cities is majorly driving this trend. Also state governments are now formulating supportive policies which is encouraging global firms to set up their shared services centers in second tier cities.
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