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PodChats for FutureCOO: Balancing scalability-resilience: The shared services conundrum

Allan Tan by Allan Tan
June 30, 2025
PodChats for FutureCOO: Balancing scalability-resilience: The shared services conundrum

PodChats for FutureCOO: Balancing scalability-resilience: The shared services conundrum

Asia is witnessing a shift from transactional execution to strategic business enablement, driven by digitisation, AI, and a focus on enterprise value creation. For organisations considering expanding back-office and mid-office operations into shared services, the decision between prioritising scalability or resilience is now more critical than ever.

Heavily influenced by the shift towards Global Business Services (GBS), expanding shared services in Asia offers cost savings, process standardisation, and access to skilled talent, boosted by AI and cloud technologies that transform them into strategic business partners.

However, scaling risks operational resilience and exposes firms to geopolitical, cyber, and talent challenges. Leaders—COOs, CFOs, CIOs, CHROs, and CMOs—must strike a balance between scalability and resilience by defining their scope, integrating systems, managing change, ensuring data readiness, and aligning with ESG goals.

Success depends on robust governance, workforce upskilling, risk mitigation, and maintaining customer experience to build agile, secure, and future-ready shared services. Byron Fernandez, CIO at TDCX, cited data from SSON Research forecasting the shared services market size to grow at a compound annual growth rate (CAGR) of 23.7% by 2028.

This growth is being driven by automation and digital transformation, with 88% of shared service officers (SSOs) in Asia planning to accelerate their efforts and rethink their strategies.

"Businesses are increasingly expecting shared services operations or SSOs to go beyond traditional transaction processing and deliver more strategic, higher-value contributions," comments Fernandez. "This means shifting the focus away from simply doing the work to driving insights and enabling business growth."

He posits that as organisations move towards GBS, integrating both shared services and outsourcing functions to align business units, boost collaboration, and enhance service delivery. Approximately 69% of SSOs are either operating as GBS or actively working toward achieving this goal, while another 16% plan to adopt a global shared services model within the next five years.

Best suited for centralisation

Fernandez acknowledges that not all processes are suitable for centralisation. He clarifies that processes that are sensitive or core to a company's operations—such as client communication, compliance reviews, and contract negotiations—are generally better left local or managed internally.

"High-value-added work that needs expertise, such as FP&A activities or contract negotiations, are not typically outsourced," explains Fernandez. "However, highly transactional processes like customer support, sales operations, procurement, and HR services are well-suited for centralisation due to their low ambiguity and standardised nature."

This distinction helps organisations maintain control over critical functions while leveraging shared services for operational efficiency.

The preferred path forward

A growing number of organisations are adopting hybrid models that combine in-house capabilities with outsourced services. According to McKinsey's State of AI Report (2024), 54% of enterprises have adopted hybrid approaches, integrating centralised resources with distributed, function-specific solutions.

"It rarely falls neatly into a category of fully outsourced or fully in-house," notes Fernandez. "Most CIOs today are taking a hybrid approach, integrating both into a cohesive, multi-layered ecosystem."

To succeed, organisations must focus on three key pillars: shared data pipelines, consistent governance policies, and standardised integration frameworks.

Ensuring data quality and readiness

Data quality remains a foundational challenge for organisations transitioning to shared services. Without clean, unified data, even the most advanced systems can fail to deliver value.

Byron Fernandez

"Regardless of whether the enterprise goes in-house, outsources, or uses a hybrid model, the foundation to any successful deployment is always the same: a reliable, unified data source." Byron Fernandez

TDCX itself follows a rigorous process that involves data profiling, discovery, and trial migrations in test environments to identify gaps and risks before full implementation.

Governance structures and project teams

Transitioning to shared services requires strong governance and cross-functional project teams. At TDCX, an executive steering committee composed of senior leaders—including the CIO, CFO, and CHRO—ensures alignment throughout the process.

"Having executive ownership and stewardship of the process helps greatly," says Fernandez. "We recently implemented a joint PMO where legacy IT teams and new organisation engineers worked together to ensure a smooth merger of platforms and processes."

Such structures help manage change, align stakeholders, and maintain business continuity during transitions.

Balancing scalability and resilience

Scalability and resilience do not need to be mutually exclusive. A flexible infrastructure built on modular design principles enables organisations to scale quickly while maintaining operational stability.

According to Fernandez, the key is to design processes and infrastructure with flexibility as a core outcome. "Operational redundancy comes from built-in redundancies like multi-region support, strong vendor relationships, and a dispersed vendor network," he went on.

This approach allows organisations to withstand shocks—from technology failures to regulatory changes—while scaling efficiently when needed.

Key risks and mitigation strategies

Shared services transformations come with inherent risks, particularly in areas such as cybersecurity, regulatory compliance, and talent readiness.

Cybersecurity

Fernandez insists cybersecurity is non-negotiable from day one. He is adamant that a comprehensive risk assessment must be conducted, and zero-trust principles should be applied across all systems.

Organisations should invest in capable security operations centres and partner with risk specialists to conduct exercises that identify and mitigate threats.

Regulatory compliance

Engaging legal and compliance experts early in the process ensures adherence to data protection laws and cross-border requirements.

Talent management

Upskilling employees is essential to ensure they're prepared for evolving roles within shared services.

"When you build an SSO or GBS network, you're pooling resources previously dispersed," says Fernandez. "This creates incredible learning and career advancement opportunities for individuals."

Managing change and employee engagement

Successful transformation hinges on people. Employees require clarity, consistency, and a sense of purpose to remain engaged.

"People need to know what's changing, why it matters, and how it impacts them," says Fernandez. "Transparent communication, feedback loops through surveys and town halls, and internal mobility options are critical."

Creating a two-way dialogue helps employees see themselves in the future organisation, fostering buy-in and engagement.

Financial returns over a multi-year horizon

While returns on shared services investments may not be immediate, they are measurable. According to Fernandez:

"Returns aren't always immediate, but they are definitely measurable. Within the first 12–18 months, there are upfront costs associated with systems, talent, and integration. By years two and three, savings start to appear through process optimisation, automation, and reduced duplication." Byron Fernandez

Beyond cost savings, strategic returns include faster time-to-market, enhanced customer experience, and more effective resource allocation.

Shared services and ESG/sustainability objectives

Fernandez believes that shared services can make a significant contribution to environmental, social, and governance (ESG) goals.

"You're taking resources that used to be dispersed and centralising them," he continues. "This leads to better occupancy, optimised energy use, reduction in paper and travel—making it a powerful lever for sustainability."

From a social perspective, shared services offer equitable talent development, especially in emerging markets. Governance benefits include stronger oversight, centralised controls, and enhanced audit readiness.

Final advice when considering shared services

For organisations contemplating a move to shared services, Fernandez offers clear guidance:

"Do it if the alternative is multi-layered, duplicated processes versus centralising via shared services. Shared services aren't the end of the journey—it's just the beginning. Once you reach a global level, you truly reap the benefits of efficiency and sustainability." Byron Fernandez

He also encourages organisations to consider partnering with external experts who bring industry best practices and efficiencies that may not exist internally.

"Think about using professionals who do this not only for your company but for 100 other companies—who know things you don't and can-do things more efficiently," he concludes.

Conclusion

As Asia continues its shift from transactional execution to strategic enablement, shared services will play a pivotal role in striking a balance between scalability and resilience. With strong governance, robust data management, and a focus on people and ESG outcomes, organisations can create agile, secure, and future-ready shared services ecosystems.

Click on the PodChats player to hear more, in detail, Fernandez's views, observations and recommendations around harnessing the potential of shared services to streamline operations.
  1. Please provide an update on the state of the shared services market in Asia as of 2025.
  2. Which processes or functions are best suited for centralisation, and which should remain local?
  3. Should leaders build a captive centre, outsource, or adopt a hybrid model?
  4. How do organisations ensure data quality and readiness for migration?
  5. Drawing from your experience, what governance structures and project teams are needed to manage the transition?
  6. Our topic is on scalability vs resilience. How do leaders balance the need for scalability with the imperative for operational resilience?
  7. Initially, I highlighted the risks associated with any change in strategy. What are the key risks—cybersecurity, regulatory, talent—and how will organisations mitigate them?
  8. Still on the issue of people. How will leaders manage change and maintain employee engagement throughout the transformation?
  9. CFOs have become more critical of investments. What financial investments and returns can leadership realistically expect over a multi-year horizon?
  10. How does a shared services strategy support an organisation's broader ESG and sustainability objectives?
  11. What is your advice for organisations thinking of moving to a shared services model?
Related:  PodChats for FutureIoT: How Industrial IoT is transforming Asia’s manufacturers
Tags: ESGglobal shared servicesshared servicesTDCX
Allan Tan

Allan Tan

Allan is Group Editor-in-Chief for CXOCIETY writing for FutureIoT, FutureCIO and FutureCFO. He supports content marketing engagements for CXOCIETY clients, as well as moderates senior-level discussions and speaks at events. Previous Roles He served as Group Editor-in-Chief for Questex Asia concurrent to the Regional Content and Strategy Director role. He was the Director of Technology Practice at Hill+Knowlton in Hong Kong and Director of Client Services at EBA Communications. He also served as Marketing Director for Asia at Hitachi Data Systems and served as Country Sales Manager for HDS’ Philippine. Other sales roles include Encore Computer and First International Computer. He was a Senior Industry Analyst at Dataquest (Gartner Group) covering IT Professional Services for Asia-Pacific. He moved to Hong Kong as a Network Specialist and later MIS Manager at Imagineering/Tech Pacific. He holds a Bachelor of Science in Electronics and Communications Engineering degree and is a certified PICK programmer.

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PodChats for FutureCOO: Balancing scalability-resilience: The shared services conundrum

PodChats for FutureCOO: Balancing scalability-resilience: The shared services conundrum

June 30, 2025
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