Many organizations are seeking new business opportunities and growth beyond their home borders. As businesses expand internationally, their technology infrastructure and their human resource processes must keep pace. How ready are most Human Resources (HR) and HR Information Technology (HRIT) organizations to support a global venture? What are the stages of globalization and some best practices to follow? How can organizations assess how ready they are to go global?

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All businesses operate in a political and legal framework defined by national and local governments. Companies operate more effectively when they understand the political context and have effective government liaison strategies in place. Governments affect economic cycles, control interest rates, regulate investment, write labor, environmental and anti-trust laws, and interpret regulations.

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Human Resources iQ speaks with Steve Parker, Vice President of North America for Jeitosa Group International. This podcast talks about some key issues that are arising in the globalization of shared services for human resources, and will discuss:
- Trends happening within the global population currently using a shared service model.
- Issues that prevent businesses from achieving success with their global shared services model.
- What an organization can do to overcome these challenges.
- What a company should consider when choosing a location for the service center.
- How an organization can use change management to support the transition.

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The ways that different cultures interpret, react, and respond in varying situations has a major impact on the success of any international business venture, and global Shared Services is no exception. This article provides a good introductory overview of the major aspects to be considered

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Shared Services have proven to reduce costs and improve processing efficiencies by up to 40%. Lack of knowledge or fear of customer dissatisfaction should not be reasons to avoid the shared services approach. Jeitosa’s approach focuses on identifying new business requirements for the enterprise, finding economies of scale, and selecting appropriate functions to consolidate that align with the company’s strategic direction. Download this datasheet to learn more about our Shared Services expertise.

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The management of an SSC can assume that it shares a common set of social and business norms with its customers. But a truly global operation has to deal with many languages and many different political frameworks. National and cultural differences present the potential for miscommunication.

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The choice of Shared Services over any other approach to service delivery is essentially an exercise in “right-placing” — performing functions in the place where they can be done best and most efficiently, simultaneously freeing other “places” (i.e., businesses) in the company to make the best use of their resources. This is a company-internal example of the long-recognized economic principle of Comparative Advantage.

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