Service Level Agreement For Shared Service Centre

The survey results indicate the different prevalence of ALS, which are influenced by many variables, including the degree of service maturity, corporate culture and customer expectations. With respect to costs, a critical issue is that costs calculated on the basis of activity-based calculation (ABC) do not encourage the Shared Service Centre to be efficient, as ABC implies that unused overcapacity costs are also charged. It is best to calculate the cost of the activity-based calculation. [3] The superior solution for costing is the allocation of costs on the basis of the provision of a company-wide main book, including recording the internal use of resources for products and customers. This method eliminates the effects of the double marginalization inherent in transfer pricing and then improves the company`s performance. [4] The Service Level Agreement identifies the entries requested by the customer and assigns responsibility for providing service between the SSC and the customer. In addition, appropriate service levels are defined to meet customer needs. THE reason for ALS is that it clarifies the relationship and expectations between SSC and the client, provides a framework for measuring performance and improving processes, improving understanding and improving collective accountability. The goal of introducing key performance indicators is to ensure clarity and accountability for end-to-end processes. Movements in KPIs can be used as indicators of point of view and delay to correct service losses.

Governance is the ability to enable, promote and enforce good decision-making. It is a formal mechanism that fosters partnership between shared services, their clients and key stakeholders. Governance generally operates at the strategic level and, as such, ensures that SSC operations are consistent with the stated vision and strategies. It provides visibility to stakeholders and provides a decision-making forum (for example. B in terms of the deployment model, sites, operating infrastructure investments, synergies, etc.). Tactically, governance "operationalizes" the strategy, raises expectations for service delivery, verifies services and facilitates problem-solving. At the operational level, it solves operational problems and promotes continuous improvements. Reported cost reductions for services organized in a shared service centre account for up to 70% of the initial costs, but about 50% on average. The discussion continued with a series of knowledge and perspectives shared by participants, including representative comments below: Based on my experience, I believe that a good service level agreement, supported by strong performance levels, a robust pricing mechanism and a customer management plan, leads to a win-win partnership between the Service Centre and the company.

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