Modern Shared Service Centers as an Alternative to Traditional Settlements of International Transactions: A Case Study
Purpose: The aim of the article is to analyze the functioning of the shared service center in terms of support of international transaction settlement services. Additionally, their activities are compared to currently used, selected settlement instruments and their usefulness as an alternative to traditionally used instruments in the future is assessed. Design/Methodology/Approach: The essence, functions and objectives of shared service centres are analysed. Using a case study, examples of settlement of international transactions in shared services centres are presented. Findings: Common elements are observed in the issue of settlement of international transactions by shared service centers with other settlement instruments (mainly bank payment obligation), acting as a system for verifying the correctness of data. Also visible is the dependence of payment on the fulfillment of a specific performance (unless otherwise specified in the case of SSCs) and the circulation of paper documents, with an indication of the spread of electronic document transfer (SSCs and BPOs). Practical implications: These elements may indicate that there are reasons to conclude that shared services centers may play an alternative role to documentary collection, documentary credit, as well as bank payment obligation, and in the future their role and scope of tasks may strengthen and expand. Originality/value: The presented considerations constitute an original scientific article, presenting the results of original research. The research was conducted in the form of a case study, so the authors analysed specific cases concerning the functioning of shared services centres in the settlement of international transactions, which made it possible to draw conclusions about shared services centres as an alternative to traditional settlements of international transactions.