Contributed By Luther Rechtsanwaltsgesellschaft mbH (Cologne)
In most cases, indirect areas or service departments that provide internal services are bundled in a shared service centre. This is still the case, for example, in the areas of personnel administration (payroll, travel expenses, sourcing), accounting or IT services. However, it can be observed that in recent years the wish to save costs has seen a downward trend in the use of captives and offshore shared service centres, due to the fact that costs can also be saved onshore through the use of IT and digitisation. Overall, we expect that customers will be more reluctant with captives, and will instead increasingly choose to bundle services in onshore shared service centres.