In all industries, there have been many changes in business operations over the last few years. This is due to increasing customer demands and a view on the future challenges and needs for commercial operations. Human resources are no exception when it comes to change management.
The human resource department has been reforming its activities and restructuring its processes in order to better align the team's capabilities with the needs of the management. Managers were able to create solutions that combined administrative and support functions in a single service system. This created opportunities to turn HR skills into business opportunities.
As businesses expanded locally and internationally, the demand for HR services integration grew. The demand for these services has been growing steadily since the 1990s. Grand View Research predicts that the shared service market will grow at 30% per year from 2015 through 2022. What are the factors that will influence the growth of the SSC market and the future of HR shared services centers?
Transformation of organizations –
Change is inevitable. Business operations are subject to changing customer and internal requirements. Companies have created a dynamic structure to manage internal processes. This allows different departments to collaborate to increase output and maximize corporate revenue.
Globalization has changed the way businesses operate and can cater to all geographies. In the future, HR SSC will have to adapt to changing business processes and undertakings. Due to the complex nature of the organization, there will be a wide range of services infrastructure.
Technology's Impact –
Technology innovations will be a key factor in the transformation of how shared service centers provide solutions for HR. Virtual employees are automating many back-end processes, including emails and phone calls. Human resources have been taking advantage of technological advances through cognitive learning and robotic process automation.
This technology will continue to be used in shared service environments, where employees will have access to their HR data via employee self-service portals. Managers and employees will both be able to easily access this information. Cloud computing is another technology marvel that has had an impact on and will continue its influence on HR SSC.