Common Shared Services Center scope boundaries include:

1) Process boundary: End-to-end vs sub-steps

Even inside one process, you can centralize invoice capture + matching + payment run but leave vendor dispute resolution close to the business
That’s why “scope” discussions often stall unless you talk in process slices rather than functions.

2) Decision boundary: Execution vs judgment

Some activities are “do the thing” (high-volume execution), while others are “decide what the thing should be” (judgment). SSCs tend to absorb more execution work first, and only later take on more judgment-heavy work if the operating model supports it. The classic “traditional” functions (Finance, HR, IT) dominate GBS/SSC delivery, but the scope is expanding into more specialized areas over time.

3) Customer boundary: Who is the SSC actually serving?

The “customer set” isn’t only business units. It’s often:

• Employees (tickets, payroll questions, expense issues) 
• Vendors (invoicing, payment status, onboarding) 
• Managers (approvals, reporting, exceptions)
  Each group experiences quality differently, so boundaries may shift by customer type.

What Optimal Scope Looks Like in Real Life (Examples)

• Payroll: centralized payslip production + issue triage, while local teams keep edge-case interpretation for country-specific rules.
• Procurement: centralized supplier onboarding + PO compliance checks, while category strategy and high-stakes negotiations stay closer to business leaders.
• Finance support : SSC handles inquiries through a dedicated finance group; predetermined part of employees are dedicated to “customer care/problem desk.

Setting up a shared services center involves five typical implementation phases:

1. Define Scope & Services

This stage involves defining the business case, setting objectives, and conducting a feasibility analysis. Key questions include:

• What services will be centralized?
• Which locations to choose for SSC?
• How will the Share Services Center align with global operating models?

Decide which processes to centralize e.g., Purchase-to-Pay (P2P), payroll, or IT helpdesk. This sets the umbrella under which the SSC operates.

2. Select the Right Location

Choose a country offering skilled labor, cost advantages, and favorable legal conditions. Consider talent mobility, infrastructure, and time zones for operational alignment. 

3. Build the Organization

Hire local experts, engineers, and programmers, and design an internal management structure with clear accountability. Then, a detailed operating model is created. This includes organizational structure, process mapping, KPIs, technology infrastructure, and governance frameworks.

4. Deploy Systems & Tools

Invest in digital platforms, ERP systems, and secure connectivity. Global Business Centers often implement cloud-based solutions for agility and transparency. This phase typically also includes IT procurement, internal process pilots, and initial service testing.

5. Ensure Legal & Compliance Support

HR and legal support, especially for foreign facilities, is essential. Address tax obligations, labor laws, and intellectual property protection. Once stabilized, the center focuses on continuous improvement. Here, benchmarking against global standards and implementing intelligent automation or CoE (Centers of Excellence) begins.

6. Plan the Rollout

Start with a soft launch to test workflows, followed by a full go-live. Continuously refine processes to enhance operational delivery. After the SSC goes live, delivering agreed services under real operational conditions. Initial performance is tracked to adjust the service levels if needed.

Choosing the right country to set up a shared services center (SSC) determines access to skilled talent, cost efficiency, and operational scalability. Alcor focuses on two strategic regions: Latin America and Eastern Europe, where we support SSC setup across several high-potential markets.

Latin America

1. Colombia

Colombia is a rapidly growing SSC destination in LATAM. With over 150,000 software developers and a booming digital services sector, it combines strong technical talent with geographic proximity to North America. Bogotá and Medellín offer robust infrastructure, cost advantages, and minimal time zone differences for real-time coordination.

Key strengths:

• UTC-5 time zone (ideal for US overlap)
• Low employment costs and tax incentives for R&D
• High English proficiency among tech professionals

2. Mexico

Mexico is a top nearshoring option for shared services center set up due to its proximity to the US, developed telecoms, and bilingual workforce. Guadalajara, Monterrey, and Mexico City are mature hubs for IT, finance, and back-office operations.

Key strengths:

• Same working hours as US Central and Pacific time zones
• Government-backed support for foreign investment
• Large talent pool with over 700,000 STEM graduates annually

Eastern Europe

1. Poland

Poland is Eastern Europe’s leader for building shared services centers, with over 650,000 IT professionals and strong infrastructure in cities like Warsaw, Kraków, and Wrocław. Companies leverage Poland’s EU membership, data protection compliance, and technical talent to centralize HR, finance, and tech operations.

Key strengths:

• GDPR compliance and stable legal environment
• Competitive costs (up to 43% lower than US)
• Advanced infrastructure and multilingual workforce

2. Romania

Romania provides multilingual talent, strong engineering education, and EU-standard legal systems. Bucharest and Cluj-Napoca are major SSC hubs for IT, procurement, and administrative services.

Key strengths:

• High percentage of English and German speakers
• Tax incentives for IT roles
• Cultural compatibility with Western business practices

Cost proves efficiency — trust proves adoption.You can hit cost targets and still fail if the business doesn’t trust the SSC. Low trust produces classic symptoms: bypassing intake routes, rework, escalations, “VIP handling,” and local teams quietly rebuilding what was centralized.

A Balanced Shared Services Center Scorecard:

Cost & efficiency

• Cost per transaction (per invoice, per payslip, per ticket)
• Cost per $1,000 revenue (good for exec comparability)
• Throughput per FTE (productivity)

Quality & control

• Error rate / rework rate
• Compliance exceptions
• Controls incidents prevented (or audit findings reduced)

Trust & experience

• SLA attainment (timeliness + quality)
• First-contact resolution and escalation rate
• Internal CSAT/NPS-style signal 

The funding mechanism isn’t “just accounting.” It changes:

• How much demand shows up,
• How standardized the work becomes,
• How much shadow-work pops up outside the SSC,
• Whether the SSC is viewed as a partner or a tax.

The 4 common funding patterns:

1) Corporate-funded

Behavior you’ll see: “all-you-can-eat” consumption. If business units don’t feel marginal cost, they escalate more edge cases and request more customization. The Shared Services Centet gets busier, but not necessarily more valuable.

2) Showback 

Behavior you’ll see: surprisingly strong demand management without political blowback. Leaders often start asking “why is our volume so high?” once consumption is visible, even if no one is billed yet. This is the “turn on the dashboard first” approach.

3) Chargeback

Behavior you’ll see: sharp demand sensitivity—and sometimes backlash. Chargebacks can push business units to standardize inputs, reduce exceptions, and stop “nice-to-have” requests. But if the price logic feels unfair, units may build workaround teams (“shadow SSC”) or resist routing work through the SSC at all.

A practical definition (widely used in cost allocation models): chargeback assigns the cost of shared services back to internal units based on usage rather than spreading cost by a fixed rule.

4) Hybrid

Behavior you’ll see: healthier scaling if the units match the work. Many organizations use a fixed base fee (to fund capacity) plus variable charges for consumption-sensitive transactions (e.g., invoices processed, payslips, tickets). Some models add a small reinvestment margin (often cited around 3–5%) so the SSC can fund improvements without begging for a budget each cycle.

Setting up a high-performing shared services center (SSC) goes beyond implementation—it demands strategic foresight, operational discipline, and scalable design. Whether you work with an in-house team or a third-party shared services center provider, the following best practices can significantly increase your chances of success.

Start with a clear roadmap

Define your SSC development across strategic, operational, and technical dimensions. Start by outlining the business case and expected outcomes. Break the setup into phases, assign responsibilities to key stakeholders, and define measurable KPIs for each stage. A detailed roadmap helps avoid scope creep, align leadership, and monitor progress throughout the SSC lifecycle. When engaging a shared services center vendor, request their standard implementation framework to benchmark your plan.

Prioritize change management

The transition from decentralized to centralized service delivery often meets internal resistance. Proactively address this by launching a structured change management program. Communicate the SSC’s objectives, timelines, and benefits clearly to all business units. Train impacted employees early and offer process documentation, role-specific training, and live support during the transition. A capable shared services center provider typically includes change management support as part of their service package.

Centralize with purpose

Centralization should drive standardization and eliminate redundant efforts—not simply shift responsibilities. Audit current operations to identify overlapping activities, redundant roles, and inconsistent platforms. Use the SSC setup to implement uniform systems, consistent reporting structures, and a unified toolset across departments. A professional shared services center vendor can assist with process diagnostics and offer recommendations for harmonizing workflows across geographies.

Design for scalability

Your SSC should be built to grow. From the beginning, ensure the architecture can accommodate future business units, languages, regions, and new functional domains. Use modular technology platforms and flexible staffing models to support rapid scaling. Choose a shared services center provider that offers long-term capacity planning and localized hiring to support phased expansion.

Combine with intelligent automation

Integrate intelligent automation (IA) into core SSC processes—especially finance, HR, and procurement—to boost productivity, reduce errors, and lower costs. Robotic Process Automation (RPA), AI-driven analytics, and self-service platforms can reduce cycle times and manual input. Leading shared services center vendors offer IA advisory and implementation support, helping you unlock digital efficiencies from day one.

By following these best practices and selecting a skilled shared services center provider or vendor, companies can reduce operational risk, accelerate ROI, and position their SSC for long-term performance and adaptability.

Alcor is a Recruitment and EOR for Tech service provider that specializes in delivering full-cycle operational support for tech companies expanding into Eastern Europe and Latin America. We help businesses hire tech professionals without opening a legal entity abroad.

What sets Alcor apart is our ability to evolve your remote team into a fully functional Shared Services Center (SSC). As your operations scale, we support the transition from individual hires to a centralized, multi-functional SSC by providing:

• Dedicated IT recruitment to source top-tier local talent
• Legal compliance and HR support across employment, benefits, and taxation
• Payroll and accounting tailored to country-specific regulations
• Office setup and IT procurement for physical or hybrid SSC models
• Process centralization and standardization consulting to align service delivery across units

We’ve already supported international product companies—such as Grammarly, BigCommerce, and Dotmatics. Our end-to-end solution allows you to build a shared services center with reduced risk, full visibility, and no hidden fees.

Whether you’re starting with a small remote team or planning a broader shared services center launch, Alcor enables a seamless transition—scaling your business operations while staying fully compliant.