This report assesses the trend towards “Value Add” Service Lines (VASL) being provided by shared services organizations around the world. In analyzing the market, we considered maturity, industry and public vs. private sectors to provide some comparable perspectives. The research is based on Chazey’s proprietary knowledge, as well as reviews of relevant publications, reports, and direct contact survey responses.

1. 1 | SEPTEMBER 2013 THE “VALUE ADD” SHARED SERVICES LANDSCAPE: HOW DO DIFFERENT INDUSTRIES AND FUNCTIONS STACK UP?
2013
SEPTEMBER
THE “VALUE ADD” SHARED
SERVICES LANDSCAPE:
HOW DO DIFFERENT
INDUSTRIES AND
FUNCTIONS STACK UP?
AN ANALYSIS OF PROCESSES AND INDUSTRIES
CHARACTERIZED BY VALUE ADD SERVICES

2. 2 | SEPTEMBER 2013 THE “VALUE ADD” SHARED SERVICES LANDSCAPE: HOW DO DIFFERENT INDUSTRIES AND FUNCTIONS STACK UP?
The conversation around shared services has evolved over
the years from one largely focused on cost savings and the
provision of “back office” services that tended to be more
“transactional and administrative” in nature, to one involving
the provision of “value adding” services to the business, and
increasing proximity to the internal customer. This has meant
that, as shared services has increasingly delivered on the initial
promise of cost savings, improved visibility, control, and process
improvements, what is possible – indeed expected, today – is a
greater scope and depth of services, including more profession-
al and technical services, that move higher up the “value chain”.
This has also encompassed revenue-enhancing strategies,
through leveraging business intelligence via data analytics, or
through enabling organic or acquisition-driven growth through
effective integration, standardization and automation.
With shared services’ implementation history stretching back
some two or three decades in North America and the UK, and
with a shorter history in Continental Europe, Latin America, and
Asia, it’s not surprising that the more mature a center, the more
services lines it tends to include, and the more likely we are to
see value-adding services within scope. Equally, while the public
sectors in North America, UK, and Australia have been taking
great strides to catch up, the private sector is still notably lead-
ing the way, both in terms of maturity and in terms of breadth of
service (however, there are some public sector exceptions).
This report highlights the trend in numbers of Value Add service
lines according to industry, function, maturity, and private vs.
public sector.
Note: This report is part of a series produced by Chazey Partners, which tracks and charts
the evolution of services delivery across different functions and regions, and across both
the private and public sectors. The reports provide an overview of the market expertise
leveraged by Chazey Partners.
Phil Searle
CEO & Founder
Chazey Partners
Chazey’s Viewpoint
3//ExecutiveSummary
4//Observations
7//Conclusions
Value Add Services Lines
Number of Organisations offering value
add services
Is there still room for growth
Your partners in business services
8//ChazeyPartners
As shared services has increas­
ingly delivered on the initial
promise of cost savings, im­
proved visibility, control, and
process improve­ments, what
is possible – indeed expected,
today – is a greater scope and
depth of services, including
revenue-enhancing strategies,
through leveraging business
intelligence via data analytics,
or through enabling organic
or acquisition-driven growth
through effective integration,
standardiza­tion and automation
“
TableofContents
2//Chazey’sViewpoint
What We Think

3. 3 | SEPTEMBER 2013 THE “VALUE ADD” SHARED SERVICES LANDSCAPE: HOW DO DIFFERENT INDUSTRIES AND FUNCTIONS STACK UP?
This report assesses the trend towards “Value Add”
Service Lines (VASL) being provided by shared ser-
vices organizations around the world. In analyzing
the market, we considered maturity, industry and
public vs. private sectors to provide some compara-
ble perspectives. The research is based on Chazey’s
proprietary knowledge, as well as reviews of rele-
vant publications, reports, and direct contact survey
responses.
For the purpose of this research, we define “Value
Add” Service Lines as services that have an impact
beyond mere cost savings or efficiency, are more
“professional and technical” in nature, and tend to
provide more “commercial” or “strategic” services that
sit closer to the internal customer. By comparison, tra-
ditional “transactional and administrative” back office
services have tended to be “removed” from the core
business, and have been more streamlined, automat-
ed, standardized and centralized. These new Value
Add Service Lines (while still operating in as standard-
ized, automated and centralized a way as possible)
have grown in importance and significance, and tend
to align more closely with the internal customer.
EXECUTIVE
SUMMARYVALUE ADD SERVICES LINES
Chazey’s previous research around the landscape of
shared services in the public sector showed that the
shared services model was not as prevalent there,
compared to the private sector. However, since the
economic downturn of 2008, the public sector has
been under severe pressure to reduce operating bud-
gets and increase efficiency. In fact, the trend started
earlier in the UK as a result of Government-driven
cost cutting measures that began in the early to mid
2000s. This pressure has created a lot of buzz in
the public sector around the potential leveraging of
shared services models. As this research indicates,
however, public sector activity has, to date, generally
been more limited to the core back office functions of
IT, HR, Procurement and Finance, with relatively limit-
ed transformation of what we are considering here as
more value-adding service lines.
This paper also demonstrates that even the more
mature private sector organizations have room to
increase their VASL offerings to customers.
We define “Value Add” Service
Lines as services that have an im­
pact beyond mere cost savings or
efficiency, are more “professional
and technical” in nature, and tend
to provide more “commercial” or
“strategic” services that sit closer
to the internal customer.
“

4. 4 | SEPTEMBER 2013 THE “VALUE ADD” SHARED SERVICES LANDSCAPE: HOW DO DIFFERENT INDUSTRIES AND FUNCTIONS STACK UP?
OBSERVATIONS
NUMBER OF ORGANIZATIONS OFFERING VALUE ADD
SERVICES
The objective of the research conducted here was to
analyze existing shared services organizations’ service
lines, and determine how many, if any, Value Add
services are currently in scope. Over the course of our
research, we collected data from 36 private sector
organizations and 15 public sector organizations.
From this data we can note the following:
• 69% (25 of 36) of private sector SSOs offer Business Support Review, Consolidation & Financial Reporting.
• The majority, that is, 55% (21 of 36), of private sector SSOs offer all of the Value Add services we have identi-
fied in the Procure-to-Pay Cycle (P2P).
• The P2P and the Record-to-Report (R2R) cycles are the most developed Value Add offerings for the private
sector. This is even more noteworthy considering the T&E Administration and Corporate Card Administration are
often very tightly linked with the P2P cycle, but are here being represented as Administrative Services.
• Public sector SSOs today offer only limited additional Value Add services, however Purchasing dominates, with
67% of public sector organizations offering this service.
Our data determined a list of 21 possible Value Add
services, stretching across Order-To-Cash, Procure-
To-Pay, Record-To-Report, Hire-To-Retire, and Admin-
istrative Services. The graph below shows the total
number of organizations, out of the 51 total sample
size, that have incorporated Value Add services in
their customer offerings.

5. 5 | SEPTEMBER 2013 THE “VALUE ADD” SHARED SERVICES LANDSCAPE: HOW DO DIFFERENT INDUSTRIES AND FUNCTIONS STACK UP?
NUMBER OF SERVICE LINES BY ORGANIZATION
Looking at the same information another way, we
wanted to determine how many Value Add services
different organizations provide. The pie charts below
display the number of Value Add Service Lines provid-
ed by organizations – i.e., whether few or many.
From the pie charts above we can note the following:
• 14% (5) of private SSOs sampled offer 16 or more of the total number of Value Add services we have identified
(i.e. 76% percent of the total VASLs).
• Just over a third (36%) of the private SSOs sampled offer 11 or more of the total number of Value Add services
(i.e., just over 50% of all VASLs).
• In the public sector sample, there were no SSOs that offered more than 10 VASLs, and the majority (87%) of-
fered only 6 or less VASLs.
With the total number of VASLs equal to 21, we
grouped the number of VASLs by thresholds, separat-
ing private and public sector SSOs.

6. 6 | SEPTEMBER 2013 THE “VALUE ADD” SHARED SERVICES LANDSCAPE: HOW DO DIFFERENT INDUSTRIES AND FUNCTIONS STACK UP?
AVERAGE NUMBER OF SERVICE LINES BY INDUSTRY
Finally, we wanted to evaluate each industry separate-
ly, to identify those that stand out in terms of having
moved towards customer-centric VASLs. The graph
below displays the average number of VASLs offered
by SSOs grouped into their industry.
From the line graph we can note two interesting points:
• There are 6 industries (out of the 16 industries represented in this sample) where the average number of VASLs
offered is greater than 10. These are:
»» Oil & Gas (4 SSOs)
»» Food & Beverage (5 SSOs)
»» Healthcare (1 SSO)
»» Consumer Goods (4 SSOs)
»» Medical/Pharmaceutical (2 SSOs)
»» Publishing (1 SSO)
• There is only one public sector industry – healthcare – where the average number of VASLs offered is greater
than 5, and there are only two public SSOs in this classification.
While the sample size is too small to provide any truly
meaningful cross-industry analysis, there are a few
interesting things to note.
0
2
4
6
8
10
12
14
16
Healthcare
Oil
&
Gas
Consumer
Goods
Publishing
Medical/Pharmaceu@cal
Food
&
Beverage
Retail
Conglomerate
Telecom
IT
Related
Defence
Document
Services
Steel
Support
Services
Travel
Technology
Automo@ve
Healthcare
Local
Gov't
Federal
Gov't
Other
Gov't
Higher
Educa@on
Private
Public
Value
Add
Service
Lines
by
Industry
#
of
SSOs
Avg
VASL

7. 7 | SEPTEMBER 2013 THE “VALUE ADD” SHARED SERVICES LANDSCAPE: HOW DO DIFFERENT INDUSTRIES AND FUNCTIONS STACK UP?
While this research was based on a relatively small
sample size, and to some extent only scratches the
surface, it does provide an overall indication of the
number of SSOs offering Value Add Services, as
well as the number of VASLs offered by SSOs, com-
pared across industries and processes. Based on the
research we can conclude that while a significant
number of SSOs (predominantly in the private sector)
offer a number of Value Add services, there is still
ample room for expansion. The private sector is more
developed in this area, which is to be expected, since
the private sector has been implementing shared
services for well over 20 years.
t would be interesting to determine whether the
maturity of the SSO has a direct correlation to the
number of Value Add Services provided, or if this
Conclusions
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form or by any means, electronic, mechanical, by photocopy, recording or otherwise, without the prior permission of Chazey Partners.
number is driven by SSO management and a culture
of continuous improvement and expansion. If there
was a direct correlation between numbers of VASLs
and maturity, that could help explain why the public
sector is lagging behind.
However, newer SSOs, whether in the private or
public sectors, have the opportunity to learn from the
experience of others and to rapidly expand service
offerings and move up the value chain, irrespective of
number of years implemented.
The more general trend towards “Global Business
Services” would also tend to support the assumption
that SSOs will add service lines in the future, across
both the public and private sectors.
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functions, now the trend is moving toward multi-functional centers, and further, again, into
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a very important one is the difficulty in assembling cross-functional governance. Inherent in
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8. 8 | SEPTEMBER 2013 THE “VALUE ADD” SHARED SERVICES LANDSCAPE: HOW DO DIFFERENT INDUSTRIES AND FUNCTIONS STACK UP?
ChazeyPartners
YOUR PARTNERS IN BUSINESS SERVICES
Chazey Partners is a professional management consultancy business that is committed to adding value to its clients
through a partnership approach. Chazey’s experience covers Business Transformation, Shared Services & Outsourcing,
and Technology Enablement, and the firm’s partners have built, operated and turned around some of the world’s most
respected and ground-breaking Shared Services Organizations.
This report is part of a series produced by Chazey Partners, which tracks and analyzes the evolution of services delivery
across different functions and regions, and across private and public sector. The reports provide an overview of the mar-
ket expertise gathered by Chazey’s partners.
If you would like to speak to a partner about this research, please contact:
Phil Searle CEO & Founder
Chazey Partners
+1 408 402 3008
philsearle@chazeypartners.com
David O’Sullivan Co-Founder & Partner
Chazey Partners
+353 (0)86 384 8573
davidosullivan@chazeypartners.com
Grant Farrell Managing Director United States
Chazey Partners
+1 408 767 1285
grantfarrell@chazeypartners.com
Esteban Carril Managing Director, Latin America
Chazey Partners
+54(911) 3085 5140
estebancarril@chazeypartners.com
Chas Moore Managing Director, Canada
Chazey Partners
+1-855-5-SHARED, Ext. 201
Chasmoore@chazeypartners.com
Anirvan Sen Managing Director, Asia, Middle East and Africa
Chazey Partners
+31 649133170 / +65 85143766 / +971 552807159
anirvansen@chazeypartners.com
Janey Jux Head of Public Sector Practice EMEA
Chazey Partners
+ 44 (0)800 6440649
janeyjux@chazeypartners.com
Christina Exarchou Head of HR Practice EMEA
Chazey Partners
+30 6944 525622
christinaexarchou@chazeypartners.com
Emer O’Kelly Regional Director Europe
Chazey Partners
+44 (0) 7703 647 360
emerokelly@chazeypartners.com