Tip No. 5: Don’t just focus on cost reduction
Experience shows that organisations focusing their SSC implementation solely on cost reduction end up with poor quality services, which are more expensive to operate than a higher service quality alternative. The cost of rework is much higher in an environment where there is little focus on performance measurement, service level agreements (SLAs) and service costing. Staff motivation can become an issue, since people do not enjoy working in an environment where there is little focus on determining and meeting customer needs. The cost of hiring and training additional staff in an SSC with high staff turnover again ensures that in the end it becomes a very expensive option.