Fair and transparent shared services costing
Shared services costing
Shared services can account for a large proportion of costs, especially within companies in the financial services industry.
To get accurate product and customer profitability, and to fully understand costs, it's essential for these companies to be able to transform cost center allocations into fair, transparent and reliable shared service costing.
Prodacapo's solution for Activity Based Costing/Management – Prodacapo ABM - offers flexibility and functionality which makes advanced cross-charging straightforward.
Shared services chargeback
Companies implement shared service centers to reduce costs, improve efficiencies and create the highest quality of service at the lowest price for their business units.
In order to create a successful win-win relationship between the shared service center and the business units, it's important that the charging back for the services is fair and transparent.
- Shared service centers want to demonstrate the value for money that business units are receiving. They also want business units' active collaboration to be able to reduce costs, as the business units' demands and their processes affect the shared service center's costs.
- Business units want to understand what they pay for, and they do not want to subsidize other business units. They also want costs to be predictable.
Prodacapo ABM is an excellent tool for shared service chargeback as it makes the cost allocation fair, transparent and predictable. It also provides the basis for a clear and easy-to-understand invoice.
This helps shared service centers justify their costs. It also helps business units understand the cost of their shared services usage and lets them make informed decisions to control and reduce their costs.
Prodacapo ABM also provides shared service centers with better information for continuously improving internal efficiency and for benchmarking. This ensures that services are competitive with the external market.
Use Prodacapo ABM to:
- for simple or advanced shared service chargeback
- at one shared service center or at several shared service centers across the globe
By adding the Prodacapo solution for planning and simulation, shared service centers can make rapid forecasts when demand changes and can align resources accordingly.
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