Effect of Global Shared Service Centers on Firm Performance: a Case Study of Standard Chartered Group in Kenya

Abstract

Organizations operate in a highly dynamic and ever changing environment leading to a lot of uncertainty. Due to dynamic market, private and public sectors are setting up shared service centers. With the modern economic climate and the high competition, both public and private organizations have no choice but to examine and improve the present business models for operational efficiency. This formed the foundation of this study as it sought to examine the effect of global shared service centers on firm performance. A case study of Standard chartered group in Kenya. Stakeholder theory, resource-based theory and transaction cost theory formed the theoretical foundation. This study adopted the longitudinal research design and primary and secondary data were used. The primary data was collected using an interview guide. The targeted respondents for this research were the chief operating officer, head of human resource manager, finance manager, Marketing and communications manager, head of portfolios and project manager giving a total of six respondents who are expected to have an in-depth understanding of shared services center. Secondary data was also collected from financial annual reports, Standard chartered group in Kenya website, Library databases, performance evaluation reports, strategic plans and other. The data obtained was analyzed qualitatively using content analysis. The study found out shared service center is able to offer the activities whereby the support needed obtains costs that are lower, enhancing the internal controls, offering quality services on its operations, standardizing and simplifying various processes. It was established that the top management were committed towards the implementation of shared service center. It was established that the SSC implementation and plans are highly monitored by the ICT department to find out any problem that may occur. Results revealed that the adoption of shared services center has raised the level of transparency in the bank among customers and improved efficiency in customer service, brand recognition and trust. The study concludes that the benefits that accrue to Standard chartered group bank from SSC far outweigh the costs of their establishment and operation, hence, SSC greatly enhance efficiency and cost savings in Standard chartered group bank. The study recommends that while establishing SSC, Standard chartered group bank should ensure that they adequately envision the possible challenges and plan in advance how to address these challenges should they appear.