Shared service centers (SSCs) and administrative cost reduction: a systematic review and research agenda

Purpose For decades, the concept of Shared Service Centers (SSCs) has been recognized in management discourse as a strategic approach to restructuring organizational support functions. Scholars have extensively examined this organizational trend, consistently emphasizing cost savings as the primary rationale behind SSC implementation. However, a comprehensive synthesis of the existing research – encompassing both qualitative and quantitative evidence – to substantiate this critical claim is still lacking. The purpose of this study is to fill this gap by systematically analyzing the SSC literature and assessing the empirical support for cost savings as a central implementation motive. Design/methodology/approach A systematic literature review was conducted, involving a screening of scientific databases for SSC-related publications. Following a structured review procedure, 89 articles were identified as containing information on cost savings. These prioritized publications were subjected to a detailed framework-based analysis employing a Theories-Characteristics-Contexts-Methods scheme to extract both qualitative and quantitative data. Ultimately, 306 relevant commentaries were gathered, with 40 publications offering author-generated evidence that underwent an in-depth analysis. Findings The structured evaluation of the evidence highlights a significant research gap: the lack of quantitative evidence based on objective financial metrics to substantiate the reduction of administrative costs achieved by SSC organizations within a company-wide profit-and-loss context. Existing research predominantly emphasizes qualitative commentary, often referenced from non-scientific third-party sources. When quantitative evidence is presented, it is frequently derived from single case studies and lacks detailed information on the calculation methodology and the associated baseline. Originality/value This paper represents the inaugural publication providing a comprehensive mapping of cost-saving evidence within the research domain. The findings underscore the urgent need for the development of a standardized approach capable of effectively capturing the cost-saving contributions of SSCs. Greater transparency regarding the concrete effects of SSCs in this context would significantly enhance top management’s decision-making processes regarding the implementation and expansion of such concepts. Enhanced quantitative rigor would constitute a pivotal advancement in the scientific field, addressing longstanding debates and establishing a novel approach to validating such contributions.