A shared service centre (SSC) for consolidation and outsourcing of smes internal business process in Malaysia

Abstract

The shared service center (SSC) is a service rendered by the third party company to ease the operation of the organization. It is a cost-efficient service that functioning to eliminates the transactional process which is a significant barrier for SME to grow and sustain in the business. The importance of shared service in improving the business process is undoubtedly in the case of big companies. However, it is almost none for the case of SMEs as far as the research is concerned. The objectives of this research are to analyze the readiness, risk, challenges and evaluate the influence factor of SMEs in implementing SSC in their organization. The qualitative research method was adopted to provide a roadmap to guide the researcher throughout the research project. Five SMEs have been selected and interviewed based on the saturated principle in the data collection process. The finding shows that adaptability, cost, experience management, and strong change management are the main factors that contribute to the adoption of shared service at the SMEs. This study serves as a guideline for SMEs that interested to implement the SSC and furnishes information for the government in developing a policy to support SMEs in the implementation of SSC. Other than that, this study also contributes as a reference guide for the other nations that have a common interest to improve the competitiveness of SMEs through the implementation of SSC.