As an organization grows and back-office processes get complex and stretched, leaders face the need for action to make life better.

One of the preferred options is to move their back- and middle-office processes to a shared services model. This is achieved either by outsourcing most of the processes or by creating their own captive shared services center (SSC). When one decides on outsourcing, the responsibility transitions to a new set of governance challenges, and it is essential to build an internal governance capability as the service-level agreements (SLAs) drive the outcome. On the other hand, a captive SSC requires a collaboration whose success or failure depends on leadership and how the SSC interacts with its internal clients. Let’s focus on the process of setting up a captive SSC and how to best establish the rules of engagement.

Building a captive SSC inevitably raises the perennial ownership and accountability discussion, especially in larger organizations where a significant number of employees are affected by this change.

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