Outsourced Strategic Shared-services Management
Outsourcing as a strategy is contracting of a service or function, usually non-core, to an external, third-party provider. In the case of OSM, its outsourcing is limited to the management of support functions or the shared-services as a strategy. OSM stands for ‘Outsourcing Shared-services strategy Management’.
Shared-services are functions that are ‘non-core’ to a business enterprise however cut across it. Non-core in the sense that these services do not directly contribute or impact revenue generation. Instead, these services are ‘cost centers’ that support the core business functions (e.g. Sales and Marketing and Operations).For example, HR serves to fulfill the need of all departments and in effect, its services are ‘shared’ by the whole business enterprise.
OSM focuses on the management of the following shared-services functions:
- Corporate Planning & Strategy Management
- Financial Management (non-banking approach)
- HR and Organizational Development Management
- Customer Service and Relationship Management
- Supply Chain Management