Enhancing the finance function: The potential of shared services

As the landscape of finance continues to evolve, the role of CFOs and finance leaders becomes increasingly crucial. In 2025, the shift towards finance-shared services is not just a trend; it is a strategic imperative that can significantly enhance the efficiency and effectiveness of finance functions across Asia.

Assessing readiness for shared services

The first step for CFOs and C-suite leaders is to assess whether their organisations are prepared to transition to a finance-shared services model. This requires a clear understanding of key objectives: reducing costs, improving efficiency, enhancing control and transparency, and managing risks more effectively.

By centralising finance functions, organisations can streamline operations and achieve scalability, setting the stage for future growth.

According to Joon Teoh, CEO of AGOS Asia, the key drivers for establishing finance-shared services include cost optimisation, M&A integration, and fostering innovation. She suggests performance assessments that focus on C-suite sponsorship, stakeholder buy-in, and the maturity of processes and systems.

She further suggests the importance of setting up objectives that encompass cost efficiency, standardisation, enhanced compliance, talent optimisation, and readiness for automation and AI integration. "Evaluating cultural readiness and governance frameworks are also crucial for a successful transition," she continues.

Centralising the right activities

Not all finance activities should be centralised. Giselle Arellano-Geronimo, Shearwater Health's vice president & head of finance, accounting & procurement, says standard operating process (SOP) activities such as transactional, clerical, and recurring items can be centralised in a low-cost location.

On the other hand: "high skill-based, regulatory-dependent and very localised processes like audit/client facing, bank-relationships, Finance Planning & Analysis that are very closely tied with location business leaders should stay local," she continues.

This strategic division ensures that core functions are standardised while local nuances are respected.

Ho Kok-Yong, CFO program leader for Deloitte Asia Pacific & Southeast Asia, observes the rise of hybrid models. He cites the example of an Indonesia-based consumer financing company that keeps its marketing and digital functions in-house while outsourcing collections and admin. Similarly, a maritime firm in Singapore centralises junior roles but retains senior finance leaders on the ground.

"Flexibility is key," he stresses. "Don't centralise for the sake of it - centralise with purpose. Leaders should assess each activity based on strategic value, potential for standardisation, and local relevance. The best models evolve with the business."

Cultural and operational readiness

Asia's diverse cultural and operational landscape presents both opportunities and challenges. While many organisations are embracing centralisation, cultural sensitivity is paramount.

By recognising and addressing local differences, finance leaders can foster an environment conducive to successful implementation.

Embracing technology

A robust technology stack is vital for seamless integration and automation. Implementing ERP systems, robotic process automation, and advanced analytics tools can revolutionise finance operations.

These technologies not only enhance efficiency but also provide real-time insights, empowering finance leaders to make informed decisions swiftly.

In labelling technology as a game-changer, Ho explains that embedding automation and analytics into core processes allows companies to pivot quickly when the rules change. Tools like finance analytics-as-a-service provide real-time views of regulatory impacts, enabling faster and better decisions.

Ho further opines that technology and talent are make-or-break:

"Without the right digital backbone or data capabilities, shared services may fall flat. Similarly, leaders should map their talent landscape. Strategic thinkers should stay close to the business, while transactional roles can thrive in shared services." Ho Kok-Yong

Establishing governance and compliance

As organisations transition to shared services, robust governance and compliance frameworks become essential. Shearwater Health's Geronimo says such a cautionary approach is vital to maximise location strategy, talent matching, retention strategies, and compliance measures, considering cross-border and international taxation and the business landscape.

Protecting data and ensuring adherence to local regulations are non-negotiable. A proactive approach to risk management, coupled with established compliance protocols, will safeguard organisational integrity.

Ho acknowledges that governance is a critical dimension. "In an increasingly regulated environment, metrics such as compliance rates, audit findings, tax accuracy, and control effectiveness ensure the integrity of the finance function. Strong finance isn't just efficient, it's trusted," he elaborates.

Geronimo suggests that regular conference attendance, benchmarking in global industries, and training are essential to align each company with the best model relevant to its situation.

"We have to keep in mind that shared services and outsourcing have to be assessed regularly in order to come up with an optimal set-up for every company." Giselle Arellano-Geronimo

Navigating change management

Transitioning from decentralised to centralised finance functions is no small feat. CFOs and HR leaders must prioritise communication, training, and collaboration throughout the process. By engaging stakeholders and fostering a culture of adaptability, organisations can mitigate resistance and ensure a smoother transition.

AGOS' Teoh says a successful transition to finance shared services requires a structured change management strategy. "Key components include stakeholder engagement through ongoing dialogue, defining future roles and career pathways, and fostering a digital-first mindset for new career tracks," she elaborates.

She also suggests identifying change champions helps drive adoption, while a tailored communication strategy addresses cultural nuances.

"Training and reskilling are essential for enhancing capabilities, and offering transition incentives supports retention of key personnel. Clear role clarity and a focus on internal mobility are critical for a smooth and effective transition." Joon Teoh

Identifying optimal locations

The choice of location for shared service centres is critical. Singapore, Malaysia, the Philippines, India, and Hong Kong emerged as top contenders, offering a balance of cost, talent, and proximity to key markets. By leveraging these strategic locations, organisations can optimise their finance operations.

Geronimo adds: "Cost saves, attrition, SLA (service level agreement) are key metrics to determine that these factors are providing the best locations for finance and accounting outsourcing and shared services."

Measuring success beyond cost savings

While cost savings are a significant benefit of shared services, success should be measured through various KPIs, including service level agreements, customer satisfaction, and data quality. By focusing on these metrics, finance leaders can demonstrate the true value of shared services to stakeholders.

Teoh believes that a successful transition to finance shared services requires a structured change management and people strategy. She lists out key elements, including stakeholder engagement through ongoing dialogue, defining future roles and career pathways, and embedding a digital-first mindset with new career tracks.

She also emphasised the importance of identifying change champions to foster adoption while a tailored communication strategy addresses cultural nuances. "Engaging local finance heads and ensuring clarity in roles are critical for a smooth transition," she elaborates.

Adapting to future shifts

The ability to adapt to regulatory and market shifts is essential for the longevity of the shared service model. Ho comments that the most effective shared service models are designed not just for today's demands but for tomorrow's disruptions. "To stay ahead of regulatory and market shifts, adaptability must be built into the model from day one," he continues.

Embracing digital solutions and fostering collaboration with regulators can ensure that organisations remain agile and compliant in an ever-changing landscape.

A more futuristic view, according to AGOS' Teoh, would be that GBS becomes more of an ecosystem orchestrator, where the workforce consists of digitally savvy talent and AI agents. "This requires an operating model redesign that focuses on human-AI collaboration," she concludes.

Conclusion

The potential of shared services to enhance the finance function is immense. By strategically centralising finance activities, leveraging technology, and establishing robust governance frameworks, CFOs can position their organisations for success in 2025 and beyond.

Embracing this transformation will not only streamline operations but also empower finance leaders to drive strategic initiatives that propel their organisations forward.